Who Really Owns Bali's Land? Foreign Residency Boom and Soaring Prices Squeeze Locals

In Bali's Canggu area, land that once cost around 1.2 billion rupiah per are (roughly 100 square meters) now sells for approximately 2.5 billion rupiah. With average local monthly salaries between 3 and 5 million rupiah, buying even a small plot of land in one's own hometown has become nearly impossible for young Balinese workers.

As of January 2026, more than 267,000 foreign nationals hold residency permits in Bali—nearly double the figure from two years earlier. While many visit for leisure, a growing number stay for months or years, renting villas, starting businesses, or working remotely. Indonesia's National Land Agency has recorded hundreds of land plots legally acquired by foreigners through the 'Hak Pakai' (right-to-use) scheme permitted under Indonesian law.

However, a more troubling practice persists: so-called 'nominee' arrangements, in which land certificates remain under an Indonesian citizen's name while the actual funds and control belong to a foreign national. Indonesia's Supreme Court has ruled such arrangements illegal, and Bali's newly enacted Regional Regulation No. 4 of 2026 threatens violators with criminal penalties. Yet proving true ownership behind seemingly legitimate paperwork remains difficult, and such schemes are often only exposed after disputes arise—by which point the damage is often already done.

Behind the wave of villa and hotel construction lies another quieter loss: between 2019 and 2024, Bali lost more than 6,500 hectares of rice paddies. This has also diminished the Subak, Bali's UNESCO-recognized traditional irrigation system. Rice fields in Bali are not merely agricultural land; they are also sites of ceremony and represent a centuries-old relationship between communities and nature, passed down through generations.

Additionally, researchers note a growing cultural shift: fewer young Balinese can read traditional Balinese script, some rarely speak Balinese even at home, and some prefer Western names over family names rooted in Balinese heritage. A researcher at Udayana University has described this trend as a 'crisis of Balinese-ness.'

The article stresses that this is not about blaming individual foreigners or local families who sell land out of necessity, such as for children's education or medical costs. Rather, it points to a systemic imbalance: rising land prices, shrinking farmland, and a younger generation increasingly unable to own homes in their own communities. While the new regulation is a welcome step, the piece argues that enforcement, monitoring, and the involvement of local customary villages (desa adat) will determine whether it meaningfully protects Balinese land or remains merely a document on a shelf.