Foreigners accused of controlling small islands in Bali? Bali Governor Wayan Koster has firmly refuted this claim, sparking fresh debate over the role of foreign investors in Indonesia’s tourism sector.
Koster dismissed recent statements made by the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN), Nusron Wahid, who alleged that small islands in Bali were under foreigners ownership. According to Koster, what actually exists is foreign investment in tourism facilities — not foreign control over land.
“There’s no foreign control; what actually exists are people investing to build tourism facilities. There are hotels, restaurants, and villas,” Koster clarified to reporters after inaugurating the Open University building in Denpasar on Wednesday (02/07/2025).
Read also: Parangtritis Beach Charms Many, but Think Twice Before You Swim!
Bali, as Koster explained, does have several small islands within its province: Nusa Penida, Nusa Lembongan, Nusa Ceningan, and Nusa Menjangan. But he stressed that no foreign nationals have direct ownership or legal control of these islands.
Koster also emphasized that strict measures will be taken if any foreign investors break the law. He pointed out that the Bali Provincial Government has conducted inspections on investment licenses and building permits. A notable example is Bingin Beach in Badung Regency, where authorities have already issued two warnings.
“If they don’t comply with procedures, there’s an enforcement team there. If they remain non-compliant, we will take strict action. At Bingin Beach, that’s already the second warning. It’s a large investment, but since it violates the rules, I’ve asked for firm action — close it, tear it down,” he said firmly.
Koster added that he plans to coordinate directly with the Ministry of ATR/BPN and the Ministry of Tourism to clarify the misunderstanding raised by Nusron Wahid’s statement.
Previously, during a working session with Commission II of the Indonesian House of Representatives (DPR RI), Minister Nusron Wahid revealed concerns about small islands in Bali and West Nusa Tenggara (NTB) allegedly controlled by foreign nationals. Nusron promised to review the legal standing of these properties.
According to Nusron, these islands have seen the construction of houses and resorts registered under foreign names. Yet, it remains unclear whether these lands are legally owned by foreign nationals or if they are technically held by Indonesian citizens in partnership with foreign investors.
Current Indonesian law strictly prohibits foreigners from owning islands outright. They are only allowed to be involved in management or as investors.
This dispute underscores the delicate balance between attracting foreign investment and maintaining national control over strategic assets, especially in regions as internationally coveted as Bali.
