The Impact of Customary Land Rights Conversion on Local Communities and Economic Development in Bali

ABSTRACT This study examines the transformation of customary land rights in Bali, Indonesia and its implications for local communities and regional economic development. As tourism and urbanisation accelerate, the conversion of customary ( adat ) land into formal legal titles has become a contested yet increasingly common process. While often criticised for disrupting traditional governance, land conversion is also driven by local aspirations for improved livelihoods, investment opportunities and participation in a modern economy. Using a qualitative approach based on case studies, interviews and field observations, this research analyses how Balinese customary communities engage with and are affected by land rights conversion. Findings indicate that conversion can stimulate economic growth, employment and infrastructure development, but it also weakens traditional land stewardship, causes social dislocation and exposes legal ambiguities. The study identifies persistent issues of limited community consultation, marginalisation of customary authorities and tension between adat and state legal systems. Nevertheless, opportunities exist to integrate customary land governance into Indonesia's legal framework through inclusive, culturally sensitive policies. The research contributes to debates on land tenure reform in Southeast Asia, emphasising the need to balance economic modernisation with the protection of Indigenous rights and social cohesion.