Bali is about to introduce new legislation that will ban the creation of new hotels, guesthouses, and resorts in the South Bali area unless plans meet every specific criteria.
The policy will be in effect for 1-2 years, though ministers have confirmed the legislation could be extended to 10 years if necessary.
In a public meeting, the Acting Governor of Bali, Sang Made Mahendra Jaya, said his proposal to the central government regarding a moratorium on the development of tourism accommodation in Denpasar, Badung, Gianyar, and Tabanan, known together as Sarbagita, should be introduced initially for 1-2 years.
Acting Governor Jaya explained, “The Bali Provincial Government has made a proposal to the Coordinating Minister for Maritime Affairs and Investment to implement a moratorium on the construction of hotels, villas, discos, and beach clubs in the Sarbagita area for 1-2 years, we want to organize it first.”
The motion not only includes a ban on the creation of new hotels, resorts, and entertainment venues but also further protections for agricultural land in the area.
This proposal specifically focuses on the issue of converting rice fields into commercial land and the regulation of Online Single Submission (OSS) permits that do not involve the regions.
At present, should a property developer want to convert a large area of agricultural land into commercial land use, an application must be made to the OSS, and the decision is made by officials operating within central government agencies, not provincially within Bali.
Acting Governor Jaya shared, “I was shocked as an official; I just saw on Tiktok that there was a cliff cutting going viral; we didn’t know it was already there. Suddenly, there was another big beach club in Tabanan and Denpasar; we didn’t know either, so we were just dumbfounded.”
He added “We see the massive conversion of land use, then there are many free sales of alcohol in small stalls, those who should buy at restaurants or hotels but buy from small traders, and the foreigners get drunk and then act up.”
He is calling for cooperation from the central government to help bring new legislation into effect as quickly as possible to help tackle rampant tourism development in the southern regions of Bali, rescue their risk of over-tourism, and protect the remaining essential agricultural landscapes in the area.
Acting Governor Jaya reiterated, “We want to make arrangements, hopefully after the limited meeting, there will be a presidential instruction regarding a moratorium on the construction of hotels, villas, discos, and beach clubs, as well as land conversion in the Sarbagita area for 1-2 years.”
The Bali Provincial Government has already garnered the support of the Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, who has voiced his desire to bring a moratorium into effect as soon as possible.
Speaking to the press last week, Minister Pandjaitan announced that he is actively working on creating the new legislation and wants to do all he can to preserve the culture, natural landscape, and heritage of Bali while ensuring that tourism develops sustainability and visitors from all over the world have a high-quality experience on the island.
When asked how long the moratorium could be in effect, unlike the Acting Governor, Minister Pandjaitan’s vision is for the long term. He noted, “We’ll see later. It could be (valid for) five years, it could be ten years. It just depends on the evaluation.”
Minister Pandjaitan said “No more people should build villas in rice fields, let the rice fields be rice fields so that Bali becomes a unique Bali, now like behind my house (in the Cemagi area) there used to be rice fields, it’s better if the house is good, this is not good either, so it damages.”
He added, “This is so that Bali is truly cleaned from narcotics, foreigners take local children’s jobs; I ask the Regional Police, Military Commander, and Immigration to be truly united; if we are united, no one can oppose us.”
Minister Pandjaitan concluded, “Also reduce topless nude clubs; it’s not that we want to see naked people if you want to choose another place, we must maintain the uniqueness of Bali, don’t let it become sexual, sexual tourists go to other places, let Bali maintain its charisma and aura.”
Neither the Central Government nor the Bali Provincial Government have issued prospective data for the introduction of the moratorium. More details will be announced when the final draft legislation is made public.
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J West
Tuesday 10th of September 2024
Addendum:
Russia/Ukraine war is heating up. Germany, Poland , East Europe Schengen borders are closing for crossing due to unsustainable increase in crossings.
There are still millions of war affected Ukrainians and Russian running from conscription …. desperate to get out. Bali has 200,000 foreigners now? Just wait. Where are all those millions of displaced going to go now that Europe no longer welcomes them?
The suggested moratorium of building will fail because Bali needs more development not less if they continue to rely on tourism to keep their economy from crashing.
stewe
Tuesday 10th of September 2024
I think this is a late decision. But it is still good. If you do not take these measures, Bali will become Ibiza and Mallorca in the future. You need to protect nature and culture. Tourists who come to Bali do not care whether they spoil the nature of the place or not. Unfortunately, this tourist behavior is like this everywhere in the world.
Ralph Erfurth
Tuesday 10th of September 2024
This is the most sensible thing I have heard for quite awhile.How many hotels can Bali sustain? Use what is already available.
J West
Tuesday 10th of September 2024
What a disaster in the making. Somebody never took any economics courses eh? Without also limiting the tourist numbers this cap on development will create a bubble in prices for existing stock, leading to a collapse in tourism…..and adding pressure on housing costs for Balinese as competition demand grows from the burgeoning expat resident population…ie resident Russian emigres who pour in every month. Supply/Demand 101.
Exp
Tuesday 10th of September 2024
"Moratorium on the construction of hotels, villas, discos, and beach clubs, as well as land conversion in Denpasar, Badung, Gianyar and Tabanan?"
Not going to work as this will cut off the income streams dramatically. This is a country with corruption ingrained into every crevice of the society. For any new law and regulation in Indonesia there is always a work around.
I live on the border of a yellow zone and look out over a green zone in my area. Day by day over the years the locals are building housing and businesses into this green zone despite a huge billboard warning about up to 3 years prison if doing so. Right now a huge construction crane is seen in the middle of the remaining huge rice field between Sanur and Renon.
With a moratorium foreigners will just have to pay much more for their "permits" so that all their "problems" can go away. For those not paying up will risk their property demolished to show that gov. "take this issue seriously". For locals; business as usual.
Shorty
Friday 13th of September 2024
@Randy,
The Australian problem is prices preventing or delaying people getting out of rental into home ownership. It's being compounded by high property prices. These people aren't and won't look to Bali. Investors may, but the return on investment is not as good or secure. Add in security of tenure, and that there's an oversupply of villas and condo's.
Randy
Wednesday 11th of September 2024
@Exp, Australia is now experiencing a housing crisis, as home prices continue to climb with demand overtake supply. Aussies cannot afford to buy or build any longer. Australian housing crisis is a human rights disaster. However several Aussies are investing in Bali in housing development at a fraction of what they would pay in Australia. This may have to slow down a bit as well in Bali but that may not deter Aussies, business as usual, eh…
Randy
Wednesday 11th of September 2024
@Exp, Australia is now experiencing a housing crisis, as home prices continue to climb with demand overtake supply. Aussies cannot afford to buy or build any longer. Australian housing crisis is a human rights disaster. However several Aussies are investing in Bali in housing development at a fraction of what they would pay in Australia. This may have to slow down a bit as well in Bali but hat may not deter Aussies, business as usual, eh...