Famous PARQ Residential Complex Closed Down In Bali’s Ubud Over Permit Issues 

Share The Article

PARQ Ubud, a residential complex described as a ‘global creative town for entrepreneurs, artists and investors’, has been temporarily closed down after the official site found the business’s permits to be incomplete.

This is not the first time the site has been raided by officials, but it is the first time that closure notices have been put in place. 

In a raid conducted by the Gianyar Regency Government on Monday, 11th November, the PARQ Ubud premises were found not to be able to present valid business licenses.

The Gianyar Regional Secretary, Dewa Alit Mudiarta, said that PARQ Ubud has now been temporarily closed until the business entity can complete the licensing permit process.

Mudiarta told reporters, “When our team visited, they did not have basic licenses such as PBG (building approval) and SLF (functionality certificate).”

View this post on Instagram

A post shared by PARQ UBUD (@parqspace)

Mudiarta went on to explain that the closure of the Ubud PARQ has been carried out as a follow-up to an agreement between the Licensing Supervision Technical Team consisting of the Public Works and Spatial Planning Service (PUPR), the One-Stop Investment and Integrated Services Service, the Environment Service, the Trade Office, the Tourism Service, the PP Satpol and the Legal Section, to investigate businesses suspected of operating outside of the law or suspected of exploiting loopholes in the current systems. 

View this post on Instagram

A post shared by Reelly – On the way to uniting 1 million agents. (@reelly.io)

Speaking separately, the Head of Satpol PP Gianyar I Made Watha explained that the Gianyar Regency Government had invited PARQ Ubud twice to attend meetings, namely on 30th May 2024 and 1st November 2024.

However, one of the business owners has not been able to show the basic license required. Watha noted, “They are ready to sign a statement and are able to temporarily stop their operations until the necessary permits are fulfilled according to the regulations.”

View this post on Instagram

A post shared by Coworking place in PARQ Ubud (@hq.coworking)

Watha added, “As a follow-up, we, together with the Prosecutor’s Office, Kodim 1616 Gianyar, Gianyar Police Station, installed an operational closing banner at PARQ Ubud, which begins with a termination and notification letter.”

The banner put up by officials at the entrance to the Ubud PARQ area states the temporary suspension of the operation of the Ubud PARQ until the necessary permits are fulfilled.

As reported by DetikBali, the PARQ Ubud building on protected rice fields (LSD) and sustainable food agricultural land (LP2B) has been suspended for all activities and must return the land to its original land should permits not be granted. 

Watha concluded, “The installation of the operational termination banner is an effort to monitor compliance according to the statement letter made by the business owner and the termination notification letter from Satpol PP.”

As officials in Bali look to crack down on foreigners abusing the immigration system to close loopholes that can be exploited in the business permit application process and to curb rampant tourism development across the island, more raids are anticipated.

Bali is also waiting to hear an update on the much anticipated moratorium that will ban the opening of new tourist accommodation and food and beverage businesses in Badung Regency, Tabanan Regency, Gianyar Regency, and Denpasar City.

The proposed policy has received backing from communities in Bali and top tourism leaders, including the Chairman of the Bali Tourism Board (BTB), Ida Bagus Agung Partha Adnyana, who told reporters last week, “The licensing moratorium in South Bali is needed to overcome several challenges that arise due to rapid development, especially in the hotel and accommodation sector.”

Adding, “With the moratorium, it is hoped that Bali tourism can develop more sustainably and provide long-term benefits to the community. Only 2 years, while we evaluate later.”

The man behind the policy, the now ex-Minister for Investment Luhut Binsar Pandjaitan, has also called for grey areas in the application process and business licensing verification processes to be reviewed, too.

If this goes ahead, it will make it harder for foreign entrepreneurs to open businesses in Bali’s biggest and most popular tourism resort areas, including Canggu, Uluwatu, Ubud, Nusa Dua, and Seminyak.