Key Takeaways
- Bali’s construction moratorium has gone through four policy reversals since September 2024 — proposed, cancelled, reinstated after deadly floods, then formalised as a 6-district ban from 2026.
- The moratorium currently restricts new hotels, restaurants, and tourism accommodation on agricultural land, but existing approved projects can continue and key tourist areas (Badung, Gianyar, Denpasar) are exceptions to the formal 6-district ban.
- No single Pergub (Governor Regulation) formally codifies the moratorium — it operates as executive policy directives, meaning it could be modified or reversed without legislative process.
- Foreign investors with existing permits (PBG) or property rights (Hak Pakai, leasehold, HGB) are not stripped of those rights, but new construction permits in affected areas are currently not being issued.
Table of Contents
- Is There a Construction Moratorium in Bali Right Now?
- How Has Bali’s Construction Moratorium Evolved?
- Which Areas of Bali Are Affected?
- What Construction Is Restricted — and What’s Still Allowed?
- Why Did Bali Impose the Construction Moratorium?
- How Does the Moratorium Affect Foreign Property Investors?
- What About Existing Permits and Ongoing Projects?
- What Regulations Underpin the Moratorium?
- Frequently Asked Questions
- Sources and References
Is There a Construction Moratorium in Bali Right Now?
Yes. As of February 2026, Bali has an active moratorium on new construction permits for hotels, restaurants, and tourism accommodation on agricultural land. The policy was reinstated by Governor Wayan Koster in September 2025 after deadly floods killed at least 18 people, and has since been formalised as a 6-district construction ban effective 2026.
The moratorium is currently in force, but it operates as executive directives from the Governor’s office rather than as a formally codified regulation. This distinction matters: there is no single Pergub (Governor Regulation) that you can point to as “the moratorium law.” Instead, the policy is enacted through instructions from the Governor to regents and mayors across Bali’s districts.
What the moratorium targets is new permit applications. Existing approved construction continues — the Kimpton Bali Ubud, a new luxury hotel, is still set to open in 2026 because it received its permits before the moratorium took effect.
The Bali provincial spatial planning agency (tarubali.baliprov.go.id) describes the moratorium as an “emergency policy responding to development saturation, environmental degradation, and social pressure from overtourism.” The agency frames it not as an anti-investment measure, but as a corrective instrument to restore development balance across the province.
Regulatory warning: As of 2026, Bali has a formalised 6-district construction ban affecting new permits for hotels, restaurants, and tourism accommodation on agricultural land. Existing approved construction continues, but new permit applications are halted.
For foreign investors, the practical impact depends on your current situation — whether you already hold property rights, whether you have existing permits, and where in Bali your property or planned development is located. The sections below unpack each of these dimensions.
How Has Bali’s Construction Moratorium Evolved?
Bali’s construction moratorium has gone through at least four major policy shifts in 18 months — from central government proposal to gubernatorial cancellation to flood-triggered reinstatement and finally a formalised 6-district ban. Understanding this timeline is essential because much of the English-language reporting covers only one phase.
The table below documents every significant moratorium event from September 2024 to February 2026, based on primary Indonesian government sources and verified international reporting.
| Date | Event | Key Decision-Maker | Status |
|---|---|---|---|
| Sept 9, 2024 | Central government agrees to moratorium on hotels, villas, nightclubs in “some areas” of Bali | Minister Sandiaga Uno, Senior Minister Luhut Pandjaitan, Acting Gov. Sang Made Mahendra Jaya | Proposed — never formalised |
| Sept 2024 | Acting Governor proposes 1-2 year ban for Sarbagita area (Denpasar, Badung, Gianyar, Tabanan) | Acting Gov. Mahendra Jaya | Proposed |
| Sept 2024 | Luhut suggests duration could be 2, 5, or even 10 years; Sandiaga says “early October” start | Luhut Pandjaitan | Discussion only |
| Oct 2024 | Ban was supposed to take effect — no formal regulation was ever signed | — | Not implemented |
| Jan 9-17, 2025 | Newly inaugurated Governor Koster explicitly cancels moratorium: “Tidak perlu moratorium. Yang ada pengendalian secara ketat” (No moratorium needed. What’s needed is stricter control) | Governor Wayan Koster | Cancelled |
| March 2025 | Koster publishes tourism guidelines (tourist taxes, sacred sites, accommodation rules) — not a moratorium | Governor Koster | Tourism regulations (not construction ban) |
| Aug 2025 | Koster closes Suwung landfill (Bali’s only waste facility), tells residents to manage own trash | Governor Koster | Later blamed for worsening floods |
| Sept 10-11, 2025 | Major floods hit Bali, killing at least 18 people. Floods linked to overdevelopment and loss of water absorption areas | — | Triggering event |
| Sept 15-19, 2025 | Koster reverses his January position, instructs all regents and mayors to stop issuing new permits on productive agricultural land. References Bali’s “100-year plan” (Perda 4/2023) | Governor Koster | Reinstated — executive directive |
| Oct 13, 2025 | Formal moratorium announcement on new hotels, villas, and restaurants. Duration: “up to 10 years” discussed | Governor Koster | In force |
| Late 2025 / Jan 2026 | 6-district construction ban formalised: Tabanan, Jembrana, Buleleng, Bangli, Karangasem, Klungkung. Main tourist areas (Badung, Gianyar, Denpasar) excepted | Governor Koster + local regional leaders | In force — 6 districts |
| Feb 2026 | Moratorium described as “still in force” by multiple sources. New hotel developments (Kimpton Ubud) continuing under pre-existing permits | — | In force — enforcement uneven |
Practical note: The moratorium has never been codified as a formal Pergub (Governor Regulation). It operates as executive instructions from the Governor to regents and mayors. This means the policy could be modified or reversed at any time without legislative process — but it also means enforcement may vary by district.
Which Areas of Bali Are Affected?
The moratorium has two overlapping geographic scopes. The formal 6-district construction ban covers Tabanan, Jembrana, Buleleng, Bangli, Karangasem, and Klungkung — notably excluding the main tourist zones of Badung, Gianyar, and Denpasar. Separately, a province-wide ban on converting productive agricultural land into commercial developments applies everywhere.
The 6-District Formal Ban (2026)
The following districts are subject to the formal construction ban on new tourism accommodation:
- Tabanan — western Bali, home to Jatiluwih rice terraces (UNESCO)
- Jembrana — far western Bali, least developed district
- Buleleng — north Bali, including Lovina
- Bangli — central highlands, including parts of the Mount Agung area
- Karangasem — east Bali, including Amed and Candidasa
- Klungkung — east Bali, including the Nusa Penida islands
Exception Districts
The following major tourist districts are not covered by the 6-district ban:
- Badung — includes Canggu, Uluwatu, Seminyak, Kuta, Legian, and Nusa Dua
- Gianyar — includes Ubud
- Denpasar — the provincial capital
Province-Wide Agricultural Land Ban
Regardless of district, Governor Koster’s instruction applies to “regents and mayors throughout Bali” — no productive land (especially rice paddies) can be converted into commercial facilities. This means that even in the exception districts, construction on agricultural land that requires land-use conversion is restricted.
The distinction matters for investors: the 6-district ban is a broad restriction on new tourism construction. The province-wide agricultural land ban is a more specific restriction that applies everywhere, including in Badung, Gianyar, and Denpasar, but only to agricultural land conversions.
An important note on the timeline: the original September 2024 proposal targeted the opposite geography — the Sarbagita area (Denpasar, Badung, Gianyar, Tabanan), meaning the main tourist zones. The actual 2026 policy reversed this focus, protecting less-developed districts instead. This reversal is significant for investors who followed the early 2024 reporting.
What Construction Is Restricted — and What’s Still Allowed?
The moratorium restricts new construction permits for hotels, restaurants, and tourism accommodation on agricultural land across Bali. However, existing approved projects with valid PBG permits can continue, construction on already-zoned commercial land appears to proceed in most areas, and local housing projects receive permits selectively depending on the district.
| Restricted | Still Allowed |
|---|---|
| New hotels on agricultural land | Existing construction with valid PBG (building permits) |
| New restaurants on agricultural land | Construction on already-zoned commercial land (yellow zones) |
| New tourism accommodation (villas-for-rent likely included) | Local housing projects (permits issued selectively) |
| Commercial facilities on rice fields | Infrastructure and government projects |
| New permits in the 6 banned districts | Construction in Badung, Gianyar, Denpasar (exception districts) |
Key Ambiguities
Villas: The September 2024 proposal explicitly included villas. The post-flood moratorium language focuses on “hotels, restaurants, commercial facilities” — villas are not consistently mentioned in every statement. However, villas operating as rental accommodation are likely covered as tourism facilities. Private residences not used for commercial rental may be exempt, but this is not confirmed in any available policy statement.
Renovations: No source explicitly addresses whether renovations of existing properties require new permits under the moratorium framework. Under normal circumstances, significant structural changes to a building require a new PBG under PP 16/2021. Whether such renovation PBG applications are also frozen is unclear — consult a local permitting office (Dinas PUPR) for your specific situation.
Land purchases: The moratorium restricts construction, not land acquisition. Foreigners can still acquire land rights (Hak Pakai, leasehold agreements) in affected areas. However, purchasing land with the intention to build carries risk — you may not be able to obtain a building permit until the moratorium is lifted or modified. See our due diligence checklist for steps to verify zoning and permit status before committing to a purchase.
Why Did Bali Impose the Construction Moratorium?
The Bali provincial government cites empirical data showing that construction saturation has exceeded the island’s environmental and social carrying capacity. The September 2025 floods — which killed at least 18 people — became the catalyst for reinstating a previously abandoned policy, supported by data on agricultural land loss, water crisis, and accommodation oversupply.
The official analysis published by the Bali Provincial Spatial Planning Agency (tarubali.baliprov.go.id) presents the moratorium as a data-driven policy decision. The key data points include:
Agricultural land loss: Bali lost approximately 6,522 hectares of productive rice fields from 2019 to 2024, an average of 1,254 hectares per year (BPN Bali data cited by tarubali). Rice fields shrank from 70,996 hectares in 2019 to 64,474 hectares in 2024. This rate of conversion threatens both food security and the Subak irrigation system, a UNESCO World Heritage cultural landscape.
Overtourism: International tourist arrivals reached 7.05 million by end of 2025, the highest in a decade (BPS 2025 data, cited by tarubali). This surge places unprecedented demand on infrastructure, water supply, and waste management.
Water crisis: Groundwater exploitation by tourism accommodation has reduced irrigation water flow to the Subak traditional water management system. The competition between tourism and agriculture for limited water resources is a structural problem that new construction would worsen.
Watershed degradation: After the September 2025 floods, Environment Minister Hanif Faisal Nurofiq stated that “Bali’s watersheds cover about 45,000 hectares, but only 1,500 hectares (roughly 3%) are tree-covered. Ideally, at least 30% should have trees” (ABC News Australia). The loss of tree cover — driven by land conversion for construction — directly contributed to the severity of the flooding.
Accommodation oversupply: BPS data shows a mismatch between the number of hotel and villa rooms and average annual occupancy rates. Oversupply drives price wars, reduces tourism quality, and creates economic pressure to convert more land — a cycle the moratorium aims to break.
Environmental NGO data: Walhi Bali reports that 3-6% of agricultural land in Badung, Gianyar, and Tabanan is being converted annually. Green zones and coastal zones have been flagged as illegally developed.
The provincial government explicitly states that the moratorium is “not an anti-investment policy, but a corrective instrument to restore development balance.” The framing positions the policy as environmental protection, not anti-development — a distinction that matters for the long-term investment climate.
How Does the Moratorium Affect Foreign Property Investors?
The moratorium does not revoke existing property rights. Foreigners who already hold Hak Pakai, leasehold agreements, or PT PMA structures retain their rights. The primary impact is on new construction: if you planned to build in a moratorium-affected area, new permit applications are currently not being processed.
The impact varies by ownership structure:
Hak Pakai holders: Property rights under PP 103/2015 are not affected by the moratorium. If you already own a completed property on Hak Pakai land, there is no impact on your ownership or usage rights. If you hold Hak Pakai land but have not yet built, new PBG (building permit) applications in affected areas are currently blocked. Your land rights remain intact — the restriction is on the construction permit, not the land title. For a full explanation of Hak Pakai rights, see our foreign ownership comparison guide.
Leasehold (Hak Sewa) holders: Existing lease agreements remain valid regardless of the moratorium. If your lease is on agricultural land in a moratorium district and you planned construction, this is now delayed indefinitely. However, land can still be leased — the restriction is on building, not on land transactions. See our leasehold guide for how Hak Sewa agreements work.
PT PMA with HGB: Companies with existing Hak Guna Bangunan and completed projects are unaffected. New construction on new HGB in moratorium areas faces the same permit freeze as all other structures. PT PMA share transactions remain unaffected — the moratorium does not restrict corporate ownership changes. See our PT PMA guide for the full company structure.
Land purchases: The moratorium restricts construction permits, not land acquisition. You can still purchase land rights in Bali. However, buying land with the assumption that you can build immediately is risky in the current environment. Verify both the zoning status and moratorium applicability before committing. See our property costs guide for what to budget for.
Property values: Multiple market sources note that existing properties and already-zoned commercial land are likely to increase in value due to reduced new competition. The moratorium creates supply constraints in an already high-demand market. For investors who already own completed properties, this may represent an upside — less new supply means stronger rental yields and resale values.
Practical note: Before purchasing any land in Bali with plans to build, verify two things: (1) the land’s zoning status via GISTARU (the online spatial planning map), and (2) whether the specific district is subject to the moratorium. A due diligence lawyer should confirm both before you commit. See our due diligence checklist for the full verification process.
What About Existing Permits and Ongoing Projects?
Projects with existing, valid PBG (Persetujuan Bangunan Gedung / Building Approval) can continue construction. ABC News Australia reports that “new construction permits will not be issued, but existing construction on the island can continue.” The Kimpton Bali Ubud — a new luxury hotel — is still set to open in 2026, confirming that pre-approved projects proceed.
The critical distinction is between three categories:
- New permit applications — these are stopped in moratorium-affected areas. If you have not yet applied for a PBG, or your application is pending, it is unlikely to be processed in the current environment.
- Existing approved projects — these continue. A PBG that was issued before the moratorium remains valid. Under PP 16/2021, a PBG is valid for the duration of construction and does not expire because of a policy moratorium.
- Enforcement — this is unclear and appears to be uneven. The moratorium’s lack of formal Pergub status means there is no explicit legal mechanism to revoke existing PBGs retroactively.
If you have a PBG but have not yet started construction, you likely can proceed — the permit has already been granted. However, given the political sensitivity of new construction in Bali, it is prudent to verify with your notary (PPAT) and the local permitting office (Dinas PUPR) before breaking ground.
For context on the permitting process and how PBG works within Bali’s licensing framework, see our villa licensing guide.
What Regulations Underpin the Moratorium?
Unlike most BPR articles that cite specific numbered regulations, the Bali construction moratorium does not have a single codifying Pergub or Perda. Instead, it draws legal backing from several existing regulations and operates primarily through executive instructions from the Governor’s office to district heads.
The following regulations provide the legal framework within which the moratorium operates:
| Regulation | Name | Relevance to Moratorium |
|---|---|---|
| SK Menko Marves No. 163/2024 | Coordinating Minister’s Decision on controlling development in Bali | Central government basis for the original September 2024 moratorium proposal |
| Perda Provinsi Bali No. 4/2023 | Haluan Pembangunan Bali Masa Depan (100-Year Bali Development Blueprint, 2025-2125) | The long-term framework Koster references when he says the moratorium “aligns with Bali’s 100-year plan.” Sets the vision for sustainable development. |
| Perda Provinsi Bali No. 2/2023 | RTRWP (Spatial Plan) 2023-2043 | Governs land use categories and zoning. Determines which land is classified as agricultural (protected) vs commercial (developable). |
| Perda Provinsi Bali No. 3/2025 | Medium-Term Development Plan 2025-2029 | Provincial development priorities — provides operational context for the moratorium within the medium-term planning framework. |
| PP 16/2021 | Building Regulation (PBG/SLF) | National regulation governing building permits. The PBG is the specific permit being frozen by the moratorium. |
| UU 26/2007 | Spatial Planning Law | National spatial planning framework that Perda 2/2023 implements at provincial level. |
No specific Pergub has been identified that formally codifies the moratorium. The policy operates as executive instructions from the Governor to regents and mayors. This is a significant legal nuance — executive instructions can be changed quickly without legislative process, but they also lack the enforcement specificity of a formal regulation.
For foreign investors, this means the moratorium exists in a somewhat unusual legal space. It is real in its effects — permits are not being issued — but its legal basis is diffuse rather than concentrated in a single document. This makes it harder to predict exactly when or how the policy might be modified. For an overview of how Indonesia’s regulatory framework affects foreign property ownership more broadly, see our PP 28/2025 guide.
Frequently Asked Questions
Can I still build a villa in Bali in 2026?
It depends on location and permit status. If you already have a valid PBG, existing construction can continue. For new construction, permits are currently not being issued for tourism accommodation on agricultural land. The 6-district ban (Tabanan, Jembrana, Buleleng, Bangli, Karangasem, Klungkung) restricts new construction most broadly, while Badung, Gianyar, and Denpasar are listed as exceptions.
Does the moratorium affect existing property I already own?
No. The moratorium restricts new construction permits, not existing property rights. If you own a completed villa, hotel, or other property, your ownership rights (Hak Pakai, leasehold, HGB) are not affected.
Can I still buy land in Bali during the moratorium?
Yes. The moratorium restricts construction permits, not land transactions. You can still acquire land rights. However, if you plan to build, verify the zoning and moratorium status before purchasing — you may not be able to obtain a building permit in the current environment.
How long will the moratorium last?
No official end date has been set. Officials have discussed durations ranging from 1 to 10 years. Because the moratorium is not codified as a formal Pergub, it could be lifted or modified by executive instruction at any time. Governor Koster has referenced alignment with Bali’s 100-year development plan (Perda 4/2023).
Are renovations of existing properties affected?
The moratorium language focuses on new construction permits. However, significant structural renovations in Indonesia generally require a new PBG under PP 16/2021. Whether renovation PBG applications are also frozen is not explicitly addressed in available policy statements. Consult a local notary or permitting office for your specific situation.
Why are Badung, Gianyar, and Denpasar exempt from the 6-district ban?
The formal 6-district ban covers the less-developed districts where agricultural land is most at risk of conversion. Badung (including Canggu, Seminyak, Kuta, Nusa Dua), Gianyar (including Ubud), and Denpasar are already heavily urbanised. The moratorium’s primary goal is protecting remaining agricultural land and rice paddies from new development in areas where conversion pressure is highest.
Is the moratorium legally enforceable?
The moratorium operates as executive policy instructions from the Governor to regents and mayors, not as a codified Pergub with specific penalties. This means enforcement may vary by district and the policy could be modified without legislative process. However, the underlying spatial planning regulations (Perda 2/2023) and building permit requirements (PP 16/2021) provide the legal mechanism through which permits are withheld.
What triggered the reinstatement of the moratorium in September 2025?
Deadly floods in Bali on September 10-11, 2025 killed at least 18 people and inundated homes, villas, and shops. The floods were attributed to overdevelopment, loss of water absorption areas, and watershed degradation. Environment Minister Hanif Faisal Nurofiq noted that only 3% of Bali’s 45,000-hectare watershed area has tree cover, far below the ideal 30% (ABC News Australia).
Sources and References
- SK Menko Marves No. 163/2024 — Coordinating Minister’s Decision on development control in Bali (cited by tarubali.baliprov.go.id)
- Perda Provinsi Bali No. 4/2023 — 100-Year Bali Development Blueprint (Haluan Pembangunan Bali Masa Depan, 2025-2125)
- Perda Provinsi Bali No. 2/2023 — Provincial Spatial Plan (RTRWP) 2023-2043
- PP 16/2021 — Building Regulation (Persetujuan Bangunan Gedung / SLF)
- Tarubali / Bali Provincial Spatial Planning Agency — “Moratorium Pembangunan sebagai Instrumen Kepemimpinan Etis dan Kebijakan Darurat Berbasis Data di Provinsi Bali”
- ANTARA News — Moratorium explanation by Bali Tourism Office
- Reuters — “Indonesia’s Bali wants to ban building hotels, villas” (September 9, 2024)
- ABC News Australia — “Bali overtourism blamed in wake of deadly floods” (September 19, 2025)
- The Guardian — “Bali bans new hotels, restaurants after deadly flooding” (September 19, 2025)
This article is for informational purposes only and does not constitute legal or investment advice. Regulations change frequently — especially in the case of the construction moratorium, which operates as executive policy and could be modified at any time. Consult a qualified Indonesian legal professional before making property or construction decisions. See our editorial policy.