<![CDATA[This research aims to legally analyze the rights of Adat Village Krama (customary villagers) over Village Residential Land) converted into commercial residences under Bali Provincial Regulation Number 4 of 2019 concerning Adat Villages in Bali. This study focuses on two aspects: the legal status and limitations of Krama rights over PKD land according to Regulation Number 4 of 2019, and the validity as well as the legal implications of utilizing such communal land for commercial residences. This study is a normative legal research employing a statute approach and a conceptual approach. The results of this study show that there is a vague norm in Article 62 paragraph (2) letter b of Regulation Number 4 of 2019, specifically within the phrase "economy for its owner," which fails to provide material limitations on the scale of individual commercial businesses and obscures customary law principles. Legally, such utilization is deemed valid provided that there is no transfer of physical ownership to outsiders and it is governed through local customary law instruments. The legal implication of this vague norm triggers regulatory ambiguity at the operational level due to the absence of standardized guidelines. Therefore, it is recommended to formulate explicit implementing regulations within each Adat Village to control commercial utilization and establish financial contribution mechanisms for the village treasury without restricting the economic rights of the Krama]]>
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