Bali authorities are tightening regulation of land relations. Governor Wayan Koster signed Resolution No. 4 of 2026, a document that local experts have already called historic. The new legal norm completely prohibits the practice of using fake names (pinjam nama) when registering land, which has been used by foreigners for decades to circumvent the law.
From now on, registration of land plots for third parties from among local residents becomes a criminal offense. Governor Koster said he would personally monitor the eradication of this loophole, which, according to the government, leads to an imbalance in the economy and social sphere. Now, fictitious use of the names of Indonesians in transactions threatens not only heavy fines, but also real prison terms.
The authorities are also dealing a new blow to uncontrolled construction. Resolution No. 4 introduces strict control over land reassignment. Special priority is given to the protection of the island's "green belt": rice fields, orchards and plantations. "The area of farmland is being catastrophically reduced due to construction projects. For the sake of food security, we will punish anyone who tries to build a villa on the site of the garden beds," the governor emphasized.
Fines are provided for violators.:
● For developers and owners.Suspension of work, cancellation of permits and demolition of buildings already erected.
For intermediaries. Lawyers, consultants and agents who facilitate fraud under the pinjam nama scheme are subject to criminal prosecution with heavy fines.
● For officials.Government employees involved in illegal transactions will face disciplinary and criminal liability.
Control over the implementation of the law is entrusted to the district administrations, which means total on-site inspections. The authorities have made it clear that Bali's land must remain in the hands of the Indonesians.
Analyst Umar Alkhatab called the new law a "shield" against investor pressure. However, he warns that in order for farmers not to seek to sell plots, the government must provide them with an alternative. The expert calls on the authorities to stimulate farmers with tax benefits, free fertilizers and guarantees for the sale of products. Without this, he believes, the pressure of money may be stronger than the prohibitions.
Source: BaliForum
