On Monday, 20th January, PARQ Ubud was formally closed down for business after the premises were issued temporary closure notices in November 2024.
PARQ Ubud, a well-known residential and creative hub, was closed down by the authorities after it was found to have been developed against a series of business, construction, and environmental regulations.
Andrej Frey, the founder and director of PARQ Ubud, was arrested on Friday, 24th January, in connection with the ‘illegal transfer of land functions.’
The German national has been the mastermind behind PARQ Developments, with PARQ Ubud standing as the most established company property.
PARQ Ubud has long been referred to locally as the ‘Russian Village’ due to the high number of Russian nationals who had invested in the complex and had been residing there.
The Bali Police Chief, Daniel Adityajaya, spoke to reporters during a press conference and confirmed that Frey, aged 53, owns 34 certificates of ownership (SHM) for the plots of land that make up the PARQ Ubud site, which spans over 1.8 hectares.
According to Indonesian law, the 1.8 hectares is formally registered as Zone 1 Protected Rice Field Land (LSD) and Sustainable Food Agriculture Land (LP2B), zone 3, which is designated as plantation land, and a tourism zone; which essentially means that it is not permissible to construct commercial properties without sufficient permits, licenses and environmental impact assessments and strict building controls.
Police Chief Adityajaya told reporters, “In the P1 zone, there are villas, spa centers, and animal farms that are still under construction. After being excavated, it turns out that the land is a transfer of sustainable agricultural land.”
The PARQ Ubud site features a 103-room hotel and residential complex, co-working spaces, gyms, restaurants, and event spaces.
He emphasized that due to Frey’s actions, the Gianyar Regency Government lost a lot of productive land. Noting, “The area of lost land is 1,845 hectares from a total of 1,752 hectares of productive land in Gianyar.”
Frey was paraded in front of the media at the press conference. He was held in handcuffs, wore grey shorts and an orange prison shirt, and his face was covered with a black face mask.
Frey’s arrest comes after months of investigation work starting in November 2024. PARQ Ubud was first visited by the authorities in April 2023 when immigration officials suspected that residents at the site were misusing their visas. However, no violations were reported.
The Police Chief added, “The suspect is the Director of PT Parq Ubud Partners, Director of PT Tomorrow Land Development Bali, and Director of PT Alfa Management Bali.”
Following the closure of PARQ Ubud on Monday 20th January the Assistant of the General Administration of the Gianyar Regency Secretary, I Ketut Pasek Lanang Sadia told the media “The closure was carried out by the laws and Regional Regulations of Gianyar Regency, and has gone through several stages.”
Adding, “The cessation of business activities and the closure of the PARQ Ubud business premises located at Jalan Sriwedari No. 24 Banjar Tegallagang was carried out because it violated Article 19 paragraph 3 of Gianyar Regency Regional Regulation No. 15 of 2015 concerning Public Order and Public Order.”
It is expected that PARQ Ubud could be the first of many internationally owned developments in Bali that could be closed down or have construction work stopped in the coming months. This comes as leaders in Bali are set on curbing rampant development on the island, protecting productive agricultural landscapes and vulnerable ecosystems across the province.
The Ex-Deputy Governor of Bali and Head of the Bali Hotel and Restaurant Association, Cok Ace, told reporters last week that leaders in Bali will be coming after foreign-owned businesses and developments that are operating against regulations, whether those regulations be in regard to business licenses, taxes, building regulations or environmental protections.
Cok Ace explained, “While we try to be orderly, foreign companies do not follow the rules, so we lose the competition and lose the market because the market comes directly from their respective countries and then lose in terms of paying taxes.”
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Randy
Friday 31st of January 2025
Besides Parq Ubud’s blame game, more pressing news developing. Russian gang members being sought by the Bali police today. They are investigating allegations that a Ukrainian national was kidnapped and robbed by a gang of nine Russian nationals, who allegedly stole $214,429 worth of cryptocurrency from his account.
Perhaps it’s time to clear out any foreign criminals lurking about and abusing their visa privileges in Indonesia. That should resonate on the same view as with Trump’s agenda to deport violent illegal criminals from the US. Do your criminal activities in your country of origin and not on Indonesian soil. Indonesians have enough on their plate to maintain Bali safe and enjoyable for everyone instead of being tarnished by foreign gang members that would intimidate foreign tourists on the island.
Shorty
Sunday 2nd of February 2025
@Randy,
By all means deport Russians or any other nationalities involved in criminal activity. But please, don't invoke Trump's actions as a reason.
Shorty
Thursday 30th of January 2025
PARQ, maybe under another name or ownership structure will reopen.
The cost of demolition and disposal of the material would be prohibitive.
Even if it were to be achieved, much of the land could not be returned to it's original state and use.
Add there are multiple business/residential owners and tenants who will pursue legal redress. That would tie the courts for years.
I'm in no way supporting PARQ or it's principals.
Sensible compromise deals will (have) be done.
Exp
Saturday 1st of February 2025
@M, A lot of Balinese owns what for them is considered "worthless farming" land compared to the wild prices in the tourist zones. Clearly the SHM certificate owner for Parq was in that category. Found a bule that went along with all the "permits no problem" bs.
Steve bm
Saturday 1st of February 2025
@Shorty, you mean save face, tidak malu , grease some more palms and backhanders with more corrupt practices so cover up the cover up....all that means carry on as the same take a get out of jail card free.
Shorty
Saturday 1st of February 2025
@M,
What you suggest should be the 'right' thing(s) to do, but there's the reality.
What do you do with 1000s of cubic metres of demolition material? Demolition would also mean excavating to 3+? metres to remove slabs, foundations, piering, swimming pools, sewage works, infrastructure items.... The soils at the site could possible be contaminated. The price would be prohibitive.
The ground level and topography has changed and will change further. The subak has gone. The underlying soil has been compacted and it's highly unlikely it could ever be used again for rice.
Add that there will probably be legal action seeking to stall or prevent demolition until after a verdict(s) in the cases against Frey and anyone else charged. There's also a strong possibility tenants and owners within the complex could take similar action. That will take years to resolve.
M
Friday 31st of January 2025
@Shorty, no! if you put it under this light there's never an end to this way to act in Bali.
The right procedure should be: - Notify the Land owner that part (or all) of the infrastructure has been built on zoning xy and therefore the existing building (or part of it) has to be removed until xy. Subsequently the green area has to be restored. - An administrative punishment (fine) has to be paid to the government and a fee has to be paid to the enrolled damaged parts (banjar, government). - If the above stated actions will be not fulfilled the landowner (the real one stated on the shm) and any other involved person who took advantage should be arrested at terms stated by the Indonesian law, the building removed and the expected for the removal have to be paid in full by the convicted individuals.
Only by doing so you state an example for future 'investors'.
Also I would kindly remind there are officials involved who allowed that that thing stands now where it stands, looks like it looks and ended in this mess. It seems that the news and everybody cares only about the German guy...
Chris
Wednesday 29th of January 2025
Its the ugliest structure in whole of Bali, they tried to bring in the Russian/german Communist era architecture which was a sore eye. Like WHY? Some farangs are just envious of Bali and trying to destroy the unique architecture of Bali. They had no intention to even get to know Local Balinese culture.
Harry
Wednesday 29th of January 2025
No one got arrested for the environmental destruction at Uluwatu without propa checks.
Why?
Because indonesians can freely destroy the environment as none of then care about the consequences.
The development in ubud was allowed to finish
Then white bashing was done
The indonesian government and local balinese should be embarrased and ashamed and loose there jobs over this.
Harry
Wednesday 29th of January 2025
The government allowed the completion of the Development
Yet now after completion they want set and example for there mismanagement and stealing of funds from the director.
The only one at fault here is the indonesian government, local banjar and lawyers.
If i was the director i would sue all of the ppl involved.
But he is white so that wont work.
The indonesian ppl involved in the development have scammed, taken money and failed.
Should they not loose there jobs?