Badung Prepares Incentive and Disincentive Schemes Following Rise in Construction on Rice Fields
The Badung Regency Government (Pemkab Badung) intends to tackle the increasing construction of villas and commercial residences on protected rice fields (LSD) within the Gumi Keris region. One method includes preparing incentive and disincentive regulations to create a deterrent effect for those violating spatial planning laws.
“I cannot deny that this phenomenon is occurring in Badung due to the rapid and promising growth of the tourism sector. Therefore, we are designing incentive and disincentive regulations to ensure there is a deterrent effect for those committing such violations,” said the Regent of Badung, I Wayan Adi Arnawa, on Friday (11/09/2026).
Badung Regency Government currently provides exemptions from land and residential taxes specifically for local residents to curb the conversion of agricultural land. However, these tax concessions will transform into high tax sanctions if such productive areas are utilised for commercial activities.
“If anyone utilises that land for commercial purposes, it will certainly be considered by us as part of the taxable object. Through the implementation of this rule, they will think twice because the tax imposition will be several times higher,” added Adi Arnawa.
In addition to tightening sanctions, the Badung Regency Government is also focusing on strengthening the defences of rice fields, one way being by increasing the welfare of local farmers.
“Currently, we are providing privileges to farmers so that they feel proud to be farmers in Badung. Children of farmers will receive scholarships, health and education are guaranteed, and there are subsidies for seeds, with the Regional Market Company (Perumda Pasar) acting as an off-taker for farmers’ harvests,” said Adi Arnawa.
Furthermore, the Badung Regency Government plans to issue special identity cards for farmers to enable them to access various facilities. This scheme is expected to encourage residents to choose maintaining their rice fields rather than selling or converting their land.
“With that ID card, farmers can access facilities that make them proud and feel that being a farmer is more rewarding than converting their land like this,” said Adi Arnawa. He added, however, that this cannot be achieved overnight as it requires a process of changing the community’s mindset and field implementation.
Previously, the Badung Regency Public Order Agency (Satpol PP) summoned seven building owners in the Subak Munggu area, Munggu Village, Mengwi District, Badung, Bali. The summons was issued because the owners had erected buildings on Protected Rice Field (LSD) and Sustainable Food Agricultural Land (LP2B) areas.
“The summons was conducted after the team carried out inspections on Friday (04/09). Of the seven building objects, so far four owners have attended for clarification,” said the Head of Investigation and Prosecution of Badung Satpol PP, Ida Bagues Ratu, with the permission of the Head of Badung Satpol PP, on Monday (07/09/2026).
Gus Ratu revealed that the building owners were unable to produce official permit documents, such as Building Approval (PBG) or Business Identification Numbers (NIB). Consequently, the Satpol PP took initial administrative steps by requesting them to cease all construction activities on the rice fields.
“After our inspection, they could not show permits, neither PBG nor NIB. The building owners have been asked to sign a statement acknowledging the violation and committing to halting activities,” said Gus Ratu.
According to him, the Badung Regency Government is preparing tiered sanctions for building owners who ignore these agreements, including the issuance of warning letters (SP) 1 through 3 periodically.
“After all stages have been completed, we will prepare a staff review to be submitted to the Regent of Badung,” he added.
Gus Ratu explained that enforcement in the form of sealing or demolishing buildings falls under the full authority of the Regent. Although the targeted land is designated as Protected Rice Field and Sustainable Food Agricultural Land, some of the land rights still hold the status of residents’ Freehold Titles (SHM).