Eyewitness News – BADUNG
The Indonesian National Police Corruption Crimes Eradication Unit (Kortastipidkor) is investigating an alleged corruption case involving the illegal occupation of state land measuring approximately 230,450 square meters in Ungasan Village, South Kuta District, Badung Regency, Bali.
The asset, valued at trillions of rupiah and belonging to the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), was allegedly unlawfully controlled by a private entity for over a decade.
​The case was announced during a press conference led by Brig. Gen. Indra Lutrianto, Director of Asset Recovery and Analysis at Kortastipidkor Polri, in Ungasan, South Kuta, Bali, on Thursday (17/9/2026).
During the briefing, Brig. Gen. Indra was accompanied by Senior Investigator Brig. Gen. Mulya Hakim Solichin, Head of Operational Division Senior Comr. Ahmad Yusuf Afandi, Sub-Directorate Chief Senior Comr. Muhammad Riffai, and Police Comr. Rina Isriana Dewi, representing the Bali Regional Police Public Relations Division.
​Chronology and Modus Operandi
The investigation stems from Police Report No. LP/A/9/VIII/2026/SPKT/KORTASTIPIDKOR dated August 24, 2026, and Investigation Warrant No. SP.Sidik/72/VIII/RES.3.2./2026/Kortastipidkor Polri.
The property was originally registered under Right to Use Certificate No. 9/Ungasan under the BPN Regional Office of Bali, which was updated on April 5, 2022, to the Government of Indonesia c.q. Ministry of ATR/BPN. The case originated from an asset exchange (ruislag) agreement between BPN and PT. MSD.
• ​Unfulfilled Obligations: Despite being designated as the auction winner, PT. MSD allegedly failed to fulfill its obligation to deliver the replacement asset, which included constructing a new BPN Bali building. Consequently, the asset exchange was never legally finalized.
• ​Illegal Physical Occupation: From 2014 to the present, PT. MSD maintained physical control of the land by erecting fences, setting up notice boards, and building guard posts, thereby preventing the state from utilizing the property.
• ​Misuse of Internal Documents & Negligence: Investigators are probing allegations regarding the use of internal BPN documents in civil lawsuits to fabricate the appearance of a completed exchange. Additionally, authorities are looking into potential negligence and abuse of power within BPN officials, including the failure to disburse execution guarantees and the lack of physical protection for the state asset.
Monumental Asset Value and Seizure Actions
An initial audit with the Audit Board of Indonesia (BPK) estimates the land’s value between 2014 and 2024 at approximately IDR 2.2 trillion. However, based on appraisal metrics for premium tourism zones, the land’s potential value could reach up to IDR 4.8 trillion. The final calculation of state financial losses covering the period up to 2026 remains underway in coordination with BPK.
On the same day, investigative teams took enforcement measures at the site:
• ​Seizure of Evidence: Authorities posted seizure signage on the property to prevent any transfer of control and to support asset recovery efforts.
• ​Witness Interrogations: Investigators questioned nine witnesses from the Ministry of ATR/BPN, BPN Regional Office Bali, PT MSD, and PT Telehouse (regarding a telecommunications tower located on the site).
• ​Expert Testimony: Legal experts in criminal law were consulted to assess individual and corporate criminal liability, according to Brig. Gen. Indra.
Brig. Gen. Indra Lutrianto emphasized that the case is being investigated under provisions regulating unlawful acts and abuse of power within the Corruption Eradication Law, along with relevant articles under the Criminal Code.
​The investigation remains ongoing, and suspects will be named following a case review once sufficient evidence is gathered.
“Kortastipidkor Polri is committed to handling this case professionally, transparently, and accountably. Our priority is to uncover the material truth and recover state assets,” he stated.
​”We also appeal to any parties holding relevant documents or information regarding this matter to immediately report to the investigators or the nearest police precinct, as all information will be verified in accordance with applicable regulations,” Brig. Gen. Indra added.
​Reporter: Daniel Herry
