KINARA Under Fire as Builder It Introduced to Lux Property Exposed for $1.2 Million Fraud and Worker Exploitation Scandal

Lux Properties Bali has issued one of its strongest public condemnations to date after uncovering what it describes as a “systematic and calculated fraud” carried out by a construction company introduced to them by their former partner, KINARA — spelled K-I-N-N-A-R-A.

According to Lux Property, the builder—whose name is being withheld pending ongoing legal actions—defrauded the company of approximately AUD $1.2 million through a pattern of inflated invoices, overstated progress reports, and fabricated project milestones spanning both a 100-villa development and a hotel construction site.

But the financial damage, Lux says, is only part of the scandal.

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Lux Properties says the most disturbing finding was not the corporate fraud against the company itself, but the human cost behind it. Hundreds of construction workers—many recruited from poor regions of Java—were allegedly forced to work for six to eight weeks at a time without pay, before being abruptly replaced with new labourers who would later receive the same mistreatment.

Lux described this practice as “morally repugnant, deeply unethical, and illegal,” saying the builder appeared to rely on a cycle of vulnerable workers who had no recourse, no contracts, and no protection against exploitation.

“Lux can absorb financial losses.

But these workers cannot absorb losing the wages they rely on to feed their families,” a Lux spokesperson said.

“This practice is appalling, and it must be stopped.”

Lux confirmed that food vendors and local suppliers were also left unpaid by the rogue builder, adding to the economic fallout.

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The scandal has raised serious questions about KINARA, the group that originally introduced the builder to Lux Property.

Lux alleges that KINARA not only failed to disclose key information about the builder’s conduct but may now face its own legal exposure. Lux says it is pursuing both the builder and KINARA for what it describes as “separate and substantial fraudulent actions” inside Indonesia.

This comes amid a cascade of other allegations surrounding KINARA’s involvement in large-scale real estate projects across Lombok and Bali, including claims of misappropriated funds, false statements to clients, and irregularities in its dealings with project partners.

Lux Property has already severed all ties with KINARA.

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In the wake of the scandal, Lux Properties Bali has announced it will work directly with Indonesian authorities and labour protection agencies to help develop stronger safeguards for migrant construction workers.

The company says it intends to support initiatives that increase transparency, mandate electronic wage tracking, and ensure foreign-funded development projects cannot be used as channels for worker exploitation.

“The suffering of workers must never again be hidden behind inflated invoices and fake progress reports,” Lux said.

“We will work with the Indonesian Government to protect workers who deserve dignity and fair treatment.”

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Lux confirms it has initiated:

•Civil litigation against the builder

•Separate legal proceedings against KINARA

•A formal complaint to Indonesian authorities regarding labour violations

It is also cooperating with local agencies to identify affected workers and assist in any possible recovery of unpaid wages.

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This latest incident adds to a widening pattern of controversy surrounding KINARA’s role in Indonesian property development. Multiple former partners and investors have stepped forward alleging irregularities, missing funds, and breaches of trust.

Lux Properties’ latest statement signals the strongest accusation yet: that KINARA introduced a builder that not only defrauded millions, but preyed on Indonesia’s most vulnerable workers.