Bali Politicians Cite Concerns Over Impact Of Crackdowns In Top Tourism Resorts 

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Political leaders in Bali are raising concerns that recent crackdowns and intensive investigations into tourism businesses in the south of the island will scare off both tourists and potential investors.

A major investigation has led to the demolition of dozens of buildings in Bali’s Bingin Beach, and Balangan Beach looks to be up next.

On Monday, 21st July, more than 500 government agency officers, policemen, and construction workers descended on Uluwatu’s Bingin Beach and began carrying out demolitions on more than 45 buildings at the tourist surf haven.

The buildings were found to be breaking a series of spatial planning laws and encroaching on government land. In the eyes of the law, despite many of the buildings and business premises standing for more than twenty years, the government chose to take the strictest course of action and ordered the demolition of the buildings.

The law also states that since these businesses and premises owners have been found to be violating the law, compensation is not available, nor will it be offered to those affected. 

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The demolition work at Bingin Beach has left the local community and many Bali lovers shocked and devastated. While many in the international community have rallied around to support local daily wage workers in the area, many tourists have changed their plans to avoid the beach following the arrival of heavy machinery for the demolition work on the beachfront.

During a government meeting held this week, the Vice Chairman of Commission II of the Badung DPRD, I Nyoman Gede Wiradana, raised concerns over the approach taken by the provincial government in issuing mass demolition orders in Bingin and the prospect of issuing more in the coming weeks and months.

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Earlier this week, it was revealed by Nyoman R Karyasa from the Badung Regency Public Works and Public Housing Agency that the results of an investigation into spatial planning, land use, and building regulations in the Balangan and Melasti Beach areas.

He revealed that as of 2025, dozens of businesses have been found to have been constructed on state-owned land. “For the data collection of violations, there are 21 businesses in Balangan Beach and 8 businesses in Melasti Beach.”

He also revealed that the investigation found that many of these businesses were found to be operating with incomplete business licences and permits.

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Karyasa confirmed that warning letters have been sent to the businesses in question, regarding incomplete business licences and building violations. In light of this, local politicians like Nyoman Gede Wiradana predict that the same fate will be assigned to Balangan Beach and Melasti Beach.

Wiradana asked a government committee hearing, “Isn’t there a more elegant solution? Okay, this violates the beach. Has it been recorded 15 years ago? Because all the beaches in Bali are destroyed. If everything is dismantled, we are afraid that investors will flee to other areas.”

Wiradana’s concerns were echoed by DPRD Member Made Sudria, who shared, “We do not agree that all violating efforts must be dismantled. The government must find a solution so that there is no more business demolition.”

He added, “How come it’s new? How has the supervision been so far? Why has it been standing firmly, and only then has it been commemorated? The issue of dismantling will scare investors.” There is no doubt that demolition work not only impacts the businesses involved but also disrupts tourists’ experience of these popular destinations.

Volatility and turbulence within the business sectors of these areas would also raise eyebrows amongst both local and international investors and prospective entrepreneurs. 

Speaking separately to reporters on the 13th August 2025, the Regent of Badung, Wayan Adi Arnawa, stated that further investigations would be needed before orders were issued either way.

He explained, “Yes, we are studying the protocol for developments that are indeed indicated like that. But let’s see, we can’t be too [reserved] to take steps. We will still study with the team, and I will convey it to the Governor to study.”

He concluded, “What was in Bingin was the development that was beyond our knowledge and on the land of the state, without our permission, so enforcement measures were taken. We will see later [regarding] violations in Balangan and Melasti; we will learn.”