Minister of Agrarian Affairs and Spatial Planning/National Land Agency, Nusron Wahid, revealed that several small islands in the West Nusa Tenggara and Bali regions are allegedly controlled by foreign nationals.
He stated that he would investigate the legal standing of ownership for these islands, as the process of how the control occurred remains unclear.
Nusron made this statement during a working meeting with Commission II of the Indonesian House of Representatives at the Parliament Complex in Jakarta, on Tuesday (July 1, 2025).
According to him, houses and resorts have been built on these islands under the names of foreign nationals, although it is not yet certain whether these properties are legally owned by them or are part of partnerships with Indonesian landowners.
According to Tirto.id, “There have been instances of small islands being sold to foreign individuals. We don’t yet know the process, but we will examine the legal standing. There are houses and resorts under foreign names on some islands in Bali and West Nusa Tenggara,” he said.
Nusron emphasized that under current regulations, islands in Indonesia cannot be owned by foreign nationals. However, foreigners may participate in investment activities, as long as they do not involve direct ownership of land.
Involved as Investors
In response, Bali Governor Wayan Koster denied the claim that any small islands in Bali are under foreign control. He explained that foreign parties are only involved as investors in tourism facilities such as hotels, restaurants, and villas not as landowners.
According RRI, “There is no foreign control. What exists are investments for building tourism facilities,” said Koster during the inauguration of the Open University building in Denpasar, Wednesday (July 2, 2025).
Koster clarified that small islands such as Nusa Penida, Nusa Lembongan, Nusa Ceningan, and Nusa Menjangan remain entirely under Indonesian jurisdiction and are not owned by foreigners.
According to Detiknews, He also mentioned that the provincial government regularly inspects foreign investments and will take firm action against any violations, citing an example in Bingin Beach, Badung Regency, where investors have already received two official warnings for regulatory breaches.
He added that he plans to coordinate with the Ministry of ATR/BPN and the Ministry of Tourism to clarify and address Nusron’s statements.
Meanwhile, the Private Islands Online website has listed five islands in Indonesia as being for sale, one of which is Panjang Island in Sumbawa, NTB. The site categorizes it as a private property island with an area of around 3,300 hectares, although no asking price is provided.