Bali in Land-Use Crisis: Criminal Sanctions Threaten Land Conversion Offenders

DENPASAR — Bali is no longer a tranquil fragment of paradise. The Island of the Gods is struggling against suffocation caused by uncontrolled land commercialisation.

Chronic traffic congestion, increasingly frequent flooding, and crumbling infrastructure signal strongly that Bali’s master plan requires comprehensive overhaul before development ambitions erase the island’s identity.

The issue extends beyond aesthetics to encompass economic and ecological sustainability. The existing zoning regime is regarded as merely a “paper tiger”—fierce on documents but toothless in field implementation.

Most recently, Governor I Wayan Koster signed a regional regulation on 24 February 2026 governing control of productive land conversion and prohibiting nominee-based land ownership transfers. The Governor explicitly stated that nominee practices have damaged the social and economic order of local communities.

Sanctions target not only capital owners but also intermediaries, facilitators, and mechanisms enabling foreign control of land. Communities and investors who convert productive rice fields into villas or commercial complexes now face severe legal consequences.

Beyond permit cancellations or administrative fines, violators face criminal sanctions under applicable legislation, including mandatory building demolition to restore land function.

However, field reality reveals stark contradictions. Hendra Hartono, Chief Executive Officer of Leads Property Services Indonesia, has highlighted the principal challenge of structurally inconsistent law enforcement.

“Existing regulations are certainly available, but field violations often occur because of insufficient structured oversight and extremely weak legal sanctions,” Hartono told Kompas.com on 6 March 2026.

As Indonesia’s international tourism gateway, Bali cannot be managed according to compromised standards.