Indonesian Political, Business & Finance News

Short Marriage Ploy: Foreigners' Strategy to Own Land in Bali

| | Source: KOMPAS Translated from Indonesian | Regulation
Short Marriage Ploy: Foreigners' Strategy to Own Land in Bali
Image: KOMPAS

Various methods are employed by foreigners to own land in Bali, ranging from nominee schemes to exploiting loopholes in marriages with Indonesian citizens. Bali Governor Wayan Koster has stated that, besides the nominee practice, another common ploy is marrying local residents to facilitate asset control. In practice, these marriages are not merely personal relationships but strategies to transfer land ownership. Often, the unions end quickly in divorce once the objective is achieved. He described the frequent pattern of short marriages ending in divorce, with land assets already transferred. “I need to remind about this, and we must address it seriously. Local residents are being exploited by foreigners through marriage to ease the transfer of their interests, namely asset control,” said Koster, quoted from KOMPAS.com archives, Saturday (25/4/2026). As a regulatory measure, the Bali Provincial Government plans to ban land ownership or control by foreigners, both directly and indirectly, including through marriage loopholes. Nevertheless, Koster emphasised that foreigners are still permitted to conduct business in Bali as long as they follow legal mechanisms, such as business partnerships or leasing systems with locals. “Banning foreigners from owning or controlling land in Bali, directly and indirectly, including by exploiting marriage status with local Balinese residents. This must be controlled,” he said. Besides the marriage ploy, the nominee scheme remains another method. This pattern is considered the most frequently exploited loophole by foreign parties to control land, especially in strategic areas like Bali’s coastlines and hillsides. According to him, this scheme has long been an entry point for foreign asset control that could harm Balinese society in the future. Not only that, the nominee practice is also seen as potentially damaging the social and economic structure if left unchecked without strict oversight. In the regulation being prepared, the local government will impose sanctions not only on capital owners but also on parties involved in facilitating such practices. From intermediaries and facilitators to providers of supporting facilities, all will be targeted for enforcement. Even civil servants (ASN) are not exempt from scrutiny. The government has affirmed it will impose firm sanctions on ASN proven to be involved in land misuse, including changes in land use that violate regulations. “The regional regulation also governs the imposition of sanctions on ASN who commit violations. This is to realise legal certainty,” said Koster.

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