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Real EstatePublished: September 12, 2026

Bali Governor Demolishes Illegal Villa in Buleleng Forest Area, Foreign Investor Suspected

Bali Governor Wayan Koster led the demolition of an illegal villa built in a social forestry area in Buleleng Regency on September 12, 2026. The building lacked required construction permits (PBG), and authorities suspect a foreign investor financed the project using a local resident's name. The provincial government has ordered reforestation to restore the affected land.

Bali Governor Wayan Koster personally led the demolition of an illegal villa built within a social forestry (Perhutanan Sosial) area in Buleleng Regency on September 12, 2026. A provincial government investigation found that the facility lacked the required Building Construction Approval (PBG) from the licensing office and had not undergone landscape management review.

Beyond the permitting issues, the Governor revealed suspicion that a foreign national (WNA) was involved as an investor in the physical construction project. "There are indications of foreign national involvement as an investor, using a local resident's name in the construction process. We are still investigating this and will take firm action," Koster stated.

The Governor emphasized that this demolition demonstrates the provincial government's commitment to protecting forest areas and ensuring social forestry management complies with regulations. To restore the affected area, he has instructed the Bali Provincial Environment and Forestry Office (DLHK) to move quickly to replant the land and restore its function as social forest.

While no direct harm to tourists or residents has been reported, this case reflects intensified crackdowns on illegal property development in Bali, and foreign nationals involved in land or building arrangements through local nominees may face increased scrutiny going forward.

Things to Consider

Foreigners considering villa purchases, investments, or rentals in Bali should verify Building Construction Approval (PBG) status and land zoning (confirming it is not social forestry or protected land) through official government channels before proceeding. Property arrangements using a local nominee's name carry significant legal risk, as demonstrated by this demolition case, so only work with licensed developers and legal counsel for any transaction. Those already invested in or staying at such properties should seek legal advice promptly.

Source: JPNN.com