While some are wrapping up the year and making plans for the next, the Bali authorities have passed a law in the final days of December that could significantly alter the property market's regulations. The regional parliament has approved a new law aimed at curbing unethical land ownership practices (nominee scheme) — including purchasing plots in the name of local residents. The document was adopted on December 29, 2025, and is one of six key laws ratified by the provincial authorities.
A nominee scheme is when a foreigner effectively owns land, but it is officially registered in the name of an Indonesian citizen. Such schemes were technically illegal before, but now Bali's authorities explicitly prohibit them in regional legislation and emphasize practical control.
The law is aimed at protecting rice fields, agricultural lands, gardening sites, plantations, and the traditional irrigation system subak.
According to Bali's governor, Wayan Koster, the island is already under serious pressure due to the mass conversion of agricultural land into villas, hotels, and commercial projects. If this process is not stopped, the authorities fear a food crisis and the destruction of traditional practices.
For foreigners, this law sends a clear signal: nominee schemes are no longer a “gray area,” land use checks will become stricter, and investments through circumventing schemes will become riskier.
At the same time, the law is not directed against leasing — on the contrary, the authorities are discussing legal mechanisms for land use that do not violate the law and at the same time allow local residents to maintain their source of income.
After approval by the regional parliament, the document must be approved by the Indonesian Ministry of Home Affairs. The law is expected to come into force in early 2026.
What to do if you already have a nominee scheme
It is important to understand that nominee schemes were illegal before, but now they are going to be dealt with much more strictly. If the land is not registered directly in your name, it is better not to delay and calmly sort out the situation in advance.
Lawyers usually advise starting with the basics: check your documents and understand the real risks, consider switching to legal options — long-term lease, right of use (Hak Pakai), or registration through a company (PT PMA) if the land is used for business. Most importantly, don't wait until the checks start suddenly. In Bali, tightening of regulations often begins with individual cases, after which inspections become widespread.
In such cases, it is wisest to consult with specialized lawyers who work with foreigners and are well versed in Balinese land dispute practices.
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