Bali State Land Dispute Worth Rp 4.8 Trillion Under Police Investigation

The Corruption Eradication Directorate General of the Indonesian National Police (Kortas Tipikor Polri) is intensifying its investigation into a corruption case involving state land in Ungasan, Badung Regency, Bali, with an estimated value of Rp 4.8 trillion. Police are expected to name suspects soon. To date, nine witnesses from various agencies, including the National Land Agency (BPN) and PT Marga Srikaton Dwipratama (MSD), have been questioned. The case centers on the alleged illegal occupation of 23 hectares of state land. PT MSD initially won an auction for the land exchange (ruislag), with the compensation being the construction of the Bali BPN office building. However, the promised building was never realized. In 2022, the land's usage rights certificate (Sertifikat Hak Pakai) was transferred from the Bali BPN Regional Office to the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN). Despite this, PT MSD continued to occupy the land, erecting fences, posting signs, and establishing guard posts. This action is considered a misuse of state assets, leading to the ongoing corruption investigation. Director of Asset Tracing and Security (P2A) for Kortas Tipikor Polri, Brig. Gen. Indra Lutrianto, stated that the suspects could be individuals or corporations. In addition, representatives from PT Telehouse were also questioned due to a telecommunications tower owned by the company standing on the 23-hectare plot. The value of the disputed land, initially assessed at Rp 2.2 trillion by the Supreme Audit Agency (BPK) as of 2024, has surged to approximately Rp 4.8 trillion this year. This case highlights potential weaknesses in state asset management and contractual disputes in development projects within Indonesia, particularly in a prime tourist destination like Bali where land disputes are not uncommon.