Bali’s shadow property market has once again drawn the authorities’ attention. The AREBI Bali brokers’ association has reported growing activity by foreign intermediaries and called for tighter controls on those who show plots of land, sell villas and take part in transactions without having the right to work as brokers in Indonesia.
AREBI Bali chairman Michael Hikma Gunawan said that some foreigners come to the island on tourist visas or investor KITAS permits, but then start looking for land plots for clients, arranging deals and advertising properties through overseas websites and closed expat communities. However, only Indonesian citizens are allowed to work as property agents and brokers in Indonesia. This requirement is set out in Minister of Trade Regulation No. 33 of 2025.
According to industry representatives, such cases are particularly common in the Canggu area, including Berawa and Pererenan, as well as in Sanur and on the Bukit Peninsula, in the Bingin area. Activity is now beginning to shift towards Ubud and some areas of Buleleng Regency in northern Bali.
AREBI is also drawing attention to the use of nominee schemes, where property is registered in the name of Indonesian citizens. In Bali, this practice is prohibited under Regional Regulation No. 4 of 2026 on the control of productive land use and the ban on transferring ownership rights through nominees.
Another issue is virtual offices. Some companies list addresses in property sale adverts, but inspections reveal that there are no physical offices at those addresses.
The situation is made more difficult by the fact that a large share of advertising is placed on overseas websites and social media. AREBI is therefore calling on the Ministry of Communication and Digital Affairs (Komdigi) to start digital monitoring and block platforms used by foreign intermediaries to sell land and property in Bali illegally.
The association believes that the shadow property market creates several problems for the island at once. Some transactions take place outside official oversight, meaning the budget loses out on tax revenue.
In addition, land and rental prices are rising, while local agencies are finding it increasingly difficult to compete with foreigners who look for buyers and sell property through their own closed communities.
The head of Bali’s municipal public order agency Satpol PP, Dewa Nyoman Rai Dharmadi, said the problem cannot be solved by one agency alone. The Labour Department, the Industry and Trade Department, the foreigner monitoring team and the immigration service are expected to be brought in to help control the situation.
Meanwhile, immigration authorities have already announced a “zero tolerance” policy towards foreigners who use their stay permits to work illegally in the property sector. Officials say violators have only two options: comply with Indonesian law or face deportation and a ban on re-entry.
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