The election of Prabowo Subianto as Indonesia’s new president is set to create a new chapter for the country’s political and economic landscape — and Bali’s real estate market stands to be one of the biggest beneficiaries. Prabowo’s presidency, which follows the leadership of Joko “Jokowi” Widodo, is expected to bring a mix of continuity and new strategic priorities, particularly in terms of infrastructure development, foreign investment policies, and tourism-driven growth.
Bali’s real estate market has long been a focal point for foreign investment, thanks to the island’s natural beauty, cultural richness, and strong tourism sector. Over the past decade, demand for luxury villas, vacation homes, and eco-friendly resorts has steadily increased. The question now is how Prabowo’s leadership will shape this already dynamic market — and whether new policies and projects will unlock further growth potential or introduce new challenges.
Prabowo’s Political Rise and Economic Vision
Prabowo Subianto’s rise to the presidency is the culmination of a long and complex political career. After two failed attempts in 2014 and 2019, Prabowo repositioned himself as a more moderate and business-friendly candidate. His victory in the 2024 election, with over 58% of the national vote, reflects his ability to appeal to both nationalist and pro-business voters.
Prabowo’s political platform focused heavily on economic strength, infrastructure development, and increasing Indonesia’s global competitiveness. His presidency is expected to reflect a pragmatic approach — maintaining the pro-investment stance of Jokowi’s administration while introducing new initiatives to accelerate growth and modernize Indonesia’s infrastructure.
Bali’s real estate sector is likely to be one of the biggest winners from this strategy. Prabowo has consistently emphasized the importance of tourism and real estate investment as key drivers of economic growth. This focus on Bali as a strategic asset suggests that new infrastructure and investment incentives could create a more favorable climate for property buyers and developers.
Key Policy Areas That Could Affect Bali’s Real Estate Market
1. Infrastructure Development as a Catalyst for Growth
Prabowo’s infrastructure agenda includes several key projects that could have a transformative impact on Bali’s property market.
One of the most significant proposals is the revival of the Buleleng Airport project in northern Bali. The project, which was previously shelved due to political opposition, would provide a major boost to the island’s accessibility and tourism capacity. A new international airport in Buleleng would not only reduce congestion at Ngurah Rai International Airport but also open up northern Bali to direct international tourism and investment.
For real estate investors, this represents a major opportunity. Increased international access to northern Bali would likely lead to a rise in property values, increased demand for vacation rentals, and accelerated commercial development. Investors who secure property in the Buleleng area before the airport’s completion could see significant returns as the market develops.
Prabowo also plans to complete the Gilimanuk-Mengwi Toll Road — a key infrastructure project designed to improve connectivity between Bali’s western and central regions. Enhanced road networks typically lead to increased property demand and higher land values along the transit corridor. Real estate developments positioned near major toll road exits or transit hubs are likely to benefit from increased investor interest and higher occupancy rates.
Additionally, the planned construction of Bali’s first Light Rail Transit (LRT) system could further enhance the island’s real estate potential. Improved public transportation infrastructure tends to increase the attractiveness of residential and commercial properties located near transit lines.
2. Foreign Investment and Real Estate Ownership Policies
One of the defining features of Jokowi’s administration was a more open stance toward foreign investment, particularly in the real estate sector. Regulatory reforms under Jokowi made it easier for foreign nationals to purchase property in Indonesia, increasing demand for high-end and luxury properties in Bali.
Prabowo’s presidency is expected to maintain and possibly expand these pro-investment policies. He has indicated that he intends to make it easier for foreign buyers to own property by simplifying ownership regulations and potentially introducing longer-term investment visas.
Countries like Thailand and Malaysia have already benefited from similar policies, where long-term investor visas have spurred foreign property ownership and boosted real estate markets. If Prabowo introduces similar measures, Bali’s real estate market could see an influx of international buyers seeking both investment properties and second homes.
Prabowo’s emphasis on economic growth through foreign capital also suggests that tax incentives and streamlined investment processes could be on the horizon. If these policies materialize, they could lower the cost of entry for foreign investors and stimulate increased development activity.
3. Sustainable and Eco-Friendly Development
A notable shift in Bali’s real estate market in recent years has been the growing interest in eco-friendly and sustainable properties. Bali’s luxury tourism sector has increasingly embraced sustainability as a core value, with high-end resorts, villas, and residential projects incorporating solar energy, water conservation systems, and eco-friendly materials.
Prabowo’s campaign platform included a focus on environmental preservation and sustainable development. If his administration introduces incentives for green building projects — such as tax breaks, reduced permit fees, or fast-tracked approvals — Bali’s real estate market could see an increase in eco-friendly developments.
Sustainable tourism is already a growing trend in Bali, with high occupancy rates and premium pricing for eco-resorts and wellness retreats. Investors who align their projects with this trend could benefit from both increased demand and government-backed incentives.
Market Outlook and Investment Opportunities
Bali’s real estate market is already on a growth trajectory, with rising property prices and increasing rental yields. Prabowo’s infrastructure and investment policies are likely to accelerate this growth, particularly in the following areas:
- Northern Bali – If the Buleleng Airport project is approved, property values in northern Bali could increase significantly. Early investors could benefit from long-term price appreciation and rental demand.
- Central Bali – Improved road connectivity and the introduction of the LRT system could drive demand for residential and commercial properties along the transit routes.
- Eco-Tourism Hubs – Government incentives for sustainable construction could increase the value of eco-friendly developments, making them attractive to both domestic and foreign buyers.
- Luxury Market – Continued openness to foreign investment and streamlined ownership regulations could drive increased demand for high-end properties, particularly from international buyers.
However, there are also risks to consider. Political instability or internal power struggles within Indonesia’s ruling coalition could delay infrastructure projects or disrupt the investment climate. Additionally, concerns over Prabowo’s human rights record could create friction with Western governments, potentially affecting trade and foreign capital flows.
Conclusion
Prabowo Subianto’s presidency presents both opportunities and challenges for Bali’s real estate market. His commitment to infrastructure development, foreign investment, and sustainable tourism creates a promising environment for long-term growth.
For investors, the key will be strategic positioning — securing properties in areas poised for infrastructure development, aligning projects with Bali’s eco-tourism trends, and taking advantage of any new incentives for foreign investment.
While political uncertainties remain, Bali’s status as a global tourism and real estate destination gives it a solid foundation for continued growth. Investors who adapt to the evolving political and economic landscape under Prabowo’s leadership could position themselves for significant long-term gains.
