Bali is entering a new era of governance with the newly inaugurated Governor Wayan Koster and Vice Governor I Nyoman Giri Prasta (Koster-Giri) unveiling plans for 15 new Regional Regulations (Perda) and Governor’s Regulations (Pergub). These new regulations, presented during the ninth plenary session of the Bali Regional House of Representatives (DPRD Bali) on March 4, 2025, aim to create a more structured and sustainable development framework for the island. As foreign investors continue to explore opportunities in Bali’s thriving real estate and tourism sectors, understanding these upcoming regulations is crucial for ensuring compliance and securing long-term investments.
Key Regulatory Changes Impacting Real Estate and Tourism
Governor Koster emphasized that these regulations are designed to balance economic growth, cultural preservation, and environmental sustainability while protecting the interests of the local community. Among the proposed regulations, several directly impact the real estate and tourism industries, particularly concerning land ownership, zoning, and business operations:
- Zoning and Land Use Regulations
- The introduction of a detailed spatial planning framework will provide legal certainty for investors.
- Stricter controls on land conversion and ownership transfers, particularly for productive agricultural land, will be enforced.
- Regulations will aim to prevent nominee arrangements, ensuring compliance with Indonesian land ownership laws.
- Coastal and Beach Protection
- The government is taking measures to safeguard public access to beaches, which are increasingly restricted due to tourism development.
- New policies will regulate private developments along the coastline to ensure that traditional and religious ceremonies can continue without disruption.
- Cases like the temporary installation of floating barriers in Serangan Beach, which limited access for local fishermen, highlight the importance of these protective measures.
- Tourism and Business Regulations
- Enhanced regulations for tourism-related businesses, including accommodations, restaurants, and retail stores, will promote fair business practices.
- A structured system for managing tourism transportation will be introduced to improve visitor experiences and local mobility.
- Oversight of modern retail chains will ensure that local businesses maintain a competitive presence in Bali’s evolving economic landscape.
- Sustainability-Focused Development
- The establishment of state-owned enterprises (BUMD) in key sectors such as clean energy, water management, and food security will promote long-term sustainability.
- The Bali Tourism Management Agency and the Creative and Digital Economy Agency will support the diversification of investment opportunities beyond traditional real estate.
Implications for Foreign Investors in Bali’s Real Estate Market
For foreign investors eyeing Bali’s real estate market, these regulatory changes present both opportunities and challenges. The increased legal clarity on zoning and land use can provide a more secure investment environment. However, stricter rules on land transactions and nominee ownership structures mean investors must carefully navigate the legal landscape.
Additionally, businesses involved in beachfront properties should anticipate adjustments to ensure compliance with new coastal protection measures. Investors are encouraged to work closely with legal experts and local partners to align with the evolving regulatory framework.
Conclusion
Bali’s commitment to structured development through these new regulations signals a more sustainable and legally transparent investment climate. Foreign investors who adapt to these changes, respect local customs, and align their projects with the island’s long-term vision will find ample opportunities in Bali’s flourishing real estate and tourism industries. Staying informed and working with experienced professionals will be key to successfully navigating these regulatory shifts while maximizing investment potential in the Island of the Gods.
