Bali land conversion – Bali is taking a firm stand against the massive conversion of productive land, a move that will significantly impact future investment and development on the island. Governor Wayan Koster has revealed a startling figure: 600 to 700 hectares of productive land, including rice fields, coastal areas, and cliffs, are lost every year to development.
This alarming disclosure was made during the signing of a joint commitment for land certification between Governor Koster and the Head of the Bali National Land Agency (BPN) on Wednesday, November 26, 2025.
The new policy directly addresses the uncontrolled Bali land conversion that has occurred due to the island’s high appeal as a tourism destination and past gaps in spatial planning.
Why This Massive Land Conversion is a Critical Issue
Governor Wayan Koster explained the root of the problem, stating, “Bali, as we know, is a tourism destination, which attracts investors to build in Bali, especially in tourism services. Considering that in the past we did not have spatial planning, various violations, if assessed by current regulations, are evident in great numbers.”
He further detailed the environmental impact, noting, “In coastal buffers, rivers, and cliffs, productive land conversion is occurring, around 600-700 hectares per year. Therefore, we have drafted a regional regulation regarding the control of productive land conversion for commercial interests, which aligns with several steps to achieve food security in Bali.”
This rapid Bali land conversion of farmland and natural buffers threatens two key pillars of the island:
- Food Security: The disappearance of rice fields undermines local food production.
- Environmental Sustainability: Building on cliffs and coastal boundaries increases erosion and ecological damage.
Bali’s New Directives to Halt Irresponsible Development
In response, the Provincial Government is implementing strict measures to minimize future Bali land conversion. Governor Koster has instructed all Regents and Mayors across Bali to no longer issue permits for the construction of hotels and restaurants that use productive land.
Additionally, he mandated that they must no longer issue permits for the development of networked modern stores.
“For the future, there should be no more spatial planning violations of any kind. As for what has already been built, we will still seek the best solution to prevent unrest, making it important for all of us to conduct socialization first,” Wayan Koster emphasized.
National Context and Support from the Land Agency
The issue of Bali land conversion is part of a national challenge. The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid, highlighted that the shrinkage of rice fields in Indonesia ranges between 60,000 to 80,000 hectares per year.
“To reduce the rate of conversion of rice fields, a map of Protected Paddy Fields (Lahan Sawah yang Dilindungi) will be established,” he explained.
Supporting the governor’s initiative, the Head of the Bali Regional Land Office, I Made Daging, stated that his office is focusing on legalizing land assets. He revealed that while Bali has an estimated 2.3 million hectares of registered land, only about 84% is certified, leaving a significant portion to be formalized.
Key Takeaway for Investors and Expats in Bali
For international investors, expatriates, and digital nomads considering property or business ventures in Bali, the message is clear:
The era of unregulated development is over. The government is strictly enforcing spatial plans to protect the island’s environmental and cultural integrity. Any future investment must align with the new regulations prohibiting the use of productive land for commercial purposes like hotels and restaurants.
This policy shift aims to ensure Bali’s sustainable future, balancing economic growth with the preservation of its iconic landscapes and food security.
Reported by Ferry Fadly
Written by Hey Bali Newsroom
