Bali Property Nominee Risks Return to Focus After an Unverified 85% Claim

TL;DR

A report's 85% foreign-control estimate remains unverified and lacks a disclosed calculation. Indonesia's documented Hak Milik restrictions are a separate legal issue.

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The Facts

A 9 November Radar Tuban article claims that around 85% of Bali's tourism property assets are controlled by outside capital and foreign investors through concealed arrangements. The accessible report does not provide a dataset, sampling method or independently verifiable calculation for that figure.

Bali Zero has not verified the 85% estimate. It should not be treated as an official ownership statistic, a finding against any specific property, or proof that all foreign investment uses nominees.

The report also raises concerns about borrowed-name arrangements and alleges involvement by some notaries. Those are the report's allegations. They do not establish misconduct by the notary involved in a reader's transaction or a new enforcement action.

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The Documented Legal Issue

Indonesia's Basic Agrarian Law, Law 5/1960, restricts Hak Milik ownership. Article 21 provides the citizenship rule, while Article 26(2) addresses transactions intended to transfer Hak Milik directly or indirectly to an ineligible foreign party.

Article 26(2) sets out serious consequences: a prohibited transfer is void by law, the land falls to the state subject to the provision's treatment of existing third-party rights, and payments already received by the owner cannot be reclaimed under that provision. It should not be simplified into a prediction that a court always awards the land to a nominee.

Whether particular documents constitute a prohibited arrangement and what remedies may exist require assessment of the facts. A registered title, contract or notarial deed should not be described as curing an otherwise prohibited transfer.

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Bali Zero Take

Our Analysis

The legal review of an ownership structure does not depend on believing an unsupported island-wide percentage. A buyer can examine the actual title, parties, payment arrangements and rights being offered without treating a broad allegation as established fact.

The analysis should also distinguish a genuine lease or another permitted land right from documents intended to disguise foreign Hak Milik ownership. Different structures have different conditions. A company label alone does not answer the land-rights question.

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Next Steps

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Sources

• Radar Tuban: Property-control allegations, 9 November 2026
• Ministry of Finance JDIH: Law 5/1960, Articles 21 and 26

Checked on 10 November 2026. No particular property or notary is accused by Bali Zero. Cover: AI-generated conceptual illustration.

Original Report

Exa: radartuban.jawapos.com

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