Bali’s New Beach Club Allowed To Operate ‘In Good Faith’ Despite Incomplete Licenses

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Authorities in Bali have launched an investigation into the island’s new beach club after suspicions were raised about the legitimacy of their business permits.

Atlas Beach Club opens its doors to the public on Monday 18th July and late last week local newspapers confirmed that the Commission I of the Bali Provincial DPRD was going to be investigating whether the club’s business licenses were all above board.

The venue, said to be the biggest beach club in Asia, is being marketed as Bali’s One Stop Lifestyle Center. The facility hosts 52 different outlets including a department store, and a street food market, all alongside the beach club itself. 

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On Monday 25th July the Commission I of the Bali Provincial DPRD conducted a surprise inspection on-site and reviews the company’s business operations. The DPRD is the Dewan Perwakilan Rakyat Daerah, the Regional People’s Representative Assembly who are responsible for overseeing, amongst other things, business licensing in the public interest.

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During the site visit, it was confirmed that Atlas Beach Club’s licensing and permits are incomplete. The inspections were carried out by the Head of Bali Province Investment, Head of Bali Tourism, Secretary of the Bali DPRD and the Head of the Bali Provincial Satpol PP. The presence of these high-profile authoritative figures suggests that the government in Bali is taking this flouting of the law seriously.

The situation is being played out as publicly as it is for a number of reasons. Not only is Atlas Beach Club positioning itself as the ‘number one destination in Bali’ a bold statement that will surely lure visitors, but the company as a whole is sitting in hot water elsewhere too. 

Atlas Beach Club’s parent company Holywings recently found itself in the middle of a religious blasphemy scandal after staff in Jakarta created a drinks promotion that was received as seriously disrespectful. Six employees have been arrested in connection with the drink deal that offered a free bottle of gin to anyone called Mohammed or Maria every Thursday.

Indonesia is a majority Muslim country and this drinks promotion caused communities across Jakarta deep offence. Authorities in Java have closed down the 12 Jakarta-based outlets. In light of this ongoing scandal and thanks to Atlas Beach Club’s celebrity stakeholders, like TV Star and attorney Hotman Paris, all eyes have been on Bali’s newest venue.

The Chairman of Commission I DPRD Bali, I Nyoman Budi Utama spoke to reporters after the site visit two completed. He said ‘There is no secret, their IMB application in Badung Regency has been issued’. An IMB is an Izin Mendirikan Bangunan and is the legal permit required for building registration in Indonesia. This permit allows the construction of buildings and ensures that building works are completed in alignment with land allocations. This permit has been fulfilled for Atlas Beach Club. 

However, according to local reports, the company has only just completed the paperwork for their NIB, business identification number. This paperwork has only just been lodged and the permit is yet to be issued. The processing of the permit may take some time and it is technically not permitted for businesses to operate until this permit has been granted. 

The secretary of Commission I DPRD Bali, Dewa Nyoman Rai, told reporters that his department has made a good faith agreement with Atlas Beach Club. He said ‘While it is not closed, firstly, ethically, there is good faith from investors that a permit has been issued, although it is currently being processed. If we don’t take care of the permit, we ask to close it, and brush it off. If we are still in the process, we will be wise’.

The club’s publicist told reporters ‘There are approximately 15 [permits] that have not been verified, I don’t know all of them… I am pleased that this investment in Bali has been recognized and well received”