The Bali Nominee Regulation will serve as a crucial tool to protect local investments and tackle illegal foreign-owned villas. With increasing numbers of foreign nationals acquiring assets through unlawful means, the Bali government strives to safeguard the local economy and preserve the island’s cultural and natural heritage.
The Growing Concern of Illegal Foreign Ownership
In recent years, Bali has faced a surge in illegal foreign-owned villas that operate without official permits. Foreign nationals often exploit loopholes, such as name-lending agreements and sham marriages with locals, to bypass regulations. Consequently, this practice deprives the government of tax revenue and threatens the sustainability of green spaces and productive rice fields.
Deputy Governor of Bali, I Nyoman Giri Prasta, emphasized the urgency of this issue. “Yes, this is a priority. Hopefully, it can be enacted this year, and we must move quickly to keep Bali intact,” he stated on March 6, 2025, as reported by Nusabali.com.
How the Bali Nominee Regulation Will Work
The Bali Nominee Regulation aims to introduce stricter monitoring mechanisms to prevent illegal ownership. Specifically, it will close loopholes that foreign nationals exploit, such as engaging in fake marriages with locals or establishing businesses with low foreign direct investment (FDI) values. Moreover, the regulation empowers law enforcement to take action against illegal villas and foreign-owned properties that evade taxes.
“Without the nominee regulation, law enforcement cannot act against harmful foreign investments, including the proliferation of illegal villas,” Giri emphasized. Additionally, the regulation requires collaboration with immigration authorities and the installation of an auto-gate system to track the location and activities of foreign nationals during their stay in Bali.
Impact on Bali’s Tourism and Property Sector
The Bali Nominee Regulation is expected to positively impact Bali’s tourism and real estate sectors. By eliminating illegal foreign-owned villas, the government can increase local revenue through proper taxation while protecting the island’s natural resources from over-exploitation.
Giri expressed confidence that the regulation would enhance Bali’s economic stability. “With this regulation, we can firmly act against illegal villas that haven’t paid taxes. Most of their transactions occur abroad, contributing nothing to Bali,” he stated during an interview on March 7, 2025.
What’s Next for Foreign Investors?
Foreign investors must adapt to the new regulation by ensuring their business practices comply with local laws. To avoid penalties and ensure smooth operations, they should seek legal assistance and work with certified local partners. Additionally, the Bali government plans to engage with tourism associations and academics to develop a comprehensive performance tree and address issues in the foreign investment sector.
Head of the Bali Tourism Office, Tjokorda Bagus Pemayun, stressed the importance of thorough preparation. “This regulation will be discussed following the directions of the governor and deputy governor. We are currently waiting because, according to the regulatory framework, an academic text must be included in the drafting process,” he said as reported by detik.com.
The Road Ahead for Bali’s Economy
The Bali Nominee Regulation represents a significant step toward protecting Bali’s local economy and cultural identity. By curbing illegal foreign ownership and enhancing monitoring systems, the government aims to secure long-term economic growth and sustainability. With strong support from the tourism sector and law enforcement agencies, Bali will reclaim its land and resources for the benefit of its people.
Source: detik.com, nusabali.com
Image: Tribun Bali/ Adrian Amurwonegoro