BADUNG, BALINEWS.ID — The National Police’s Corruption Crime Eradication Corps (Kortastipidkor) is investigating alleged corruption involving approximately 230,450 square meters of state-owned land in Ungasan Village, South Kuta District, Badung Regency, Bali.

The land, an asset under the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), is suspected of having been illegally occupied by a private company for more than a decade.

The investigation was disclosed by Director of the Kortastipidkor’s P2A Directorate, Brig. Gen. Pol. Indra Lutrianto, during a press conference in Ungasan on Thursday (Sept. 17, 2026).

Indra said the investigation is based on Police Report No. LP/A/9/VIII/2026/SPKT/KORTASTIPIDKOR dated Aug. 24, 2026, and Investigation Order No. SP.Sidik/72/VIII/RES.3.2./2026/Kortastipidkor Polri.

The land was originally registered under Right of Use Certificate No. 9/Ungasan in the name of the Bali Regional Office of the National Land Agency. On April 5, 2022, the certificate was updated to the name of the Government of the Republic of Indonesia c.q. the Ministry of ATR/BPN.

According to investigators, the case originated from an asset-swap arrangement, or ruislag, between the BPN and PT MSD.

PT MSD was named the winner of the auction but allegedly failed to fulfill its obligation to provide replacement assets in the form of a new BPN Bali office building. As a result, investigators said the asset-swap process was never fully completed.

Despite this, PT MSD allegedly took physical control of the land from 2014 until now by installing fences, warning signs and a security post, preventing the state from using the property.

Investigators are also examining allegations that internal BPN documents were used in civil litigation to create the appearance that the ruislag process had been completed.

The investigation is also looking into alleged negligence and abuse of authority by officials within the BPN, including the failure to cash a performance guarantee and the lack of physical protection for the state asset.

Land Valued at Trillions of Rupiah

Preliminary calculations conducted in cooperation with the Supreme Audit Agency (BPK) indicate that the land was worth approximately Rp2.2 trillion during the 2014–2024 period.

Based on an appraisal of the area as a premium tourism destination, the potential value of the land is estimated to reach Rp4.8 trillion.

However, the final calculation of potential state financial losses is still being conducted in cooperation with the BPK and will cover developments through 2026.

On Thursday, investigators also placed a seizure notice on the disputed property to prevent any transfer of control and to support efforts to recover the state asset.

Nine witnesses have been questioned, including officials and representatives from the Ministry of ATR/BPN, the Bali BPN Regional Office, PT MSD and PT Telehouse, which is associated with a telecommunications tower located on the site.

Investigators have also sought an opinion from criminal law experts to assess potential criminal liability involving individuals and corporations.

Indra said the investigation is based on allegations of unlawful acts and abuse of authority under Indonesia’s anti-corruption law, as well as relevant provisions of the Criminal Code.

The investigation remains ongoing, and no suspects have been officially named. Any decision to designate suspects will be based on sufficient evidence and a case review, investigators said.

“Kortastipidkor is committed to handling this case professionally, transparently and accountably. Our focus is to establish the material truth and safeguard state assets,” Indra said.

He also urged anyone possessing documents or information related to the case to submit them to investigators or the nearest police station. All information received will be verified and handled in accordance with applicable laws and regulations.