Top Bali Tourist Hotels And Restaurants Investigated Over Permit Violations 

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The Bali Provincial Government is on a mission to crack down on tourism businesses that are violating the law.

There is a broad range of violation categories up for investigation, including spatial planning, business permits and licences, and tax. The Provincial Government is not only targeting new businesses, but also those that have been established and operated for years. 

The Bali Provincial Government has created the Special Committee for Spatial Planning, Regional Assets and Licensing, known as TRAP. The TRAP team has been tasked with investigating a whole swathe of business violations, with a specific focus on businesses in the tourism sector.

The team has been active in Tabanan Regency, issuing demolition orders to buildings constructed on the Jatiliwih Rice Terraces, sparking protests from local farmers. Though the situation at Jatiluwih Rice Terraces is now resolved and tourists are being actively encouraged to visit the area, the TRAP Team is following up on investigations in all Bali’s busiest tourism regencies, including Badung. 

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The TRAP Team is currently investigating both The Edge Hotel in Uluwatu and Hotel Mulia, also in Pecatu Village. A public hearing has been held attended by major political figures from the regency to help establish “in-depth clarification regarding alleged inconsistencies in spatial planning, building heights, coastal boundary utilization, and the completeness of permit documents.”

Starting with Hotel Mulia, the Secretary of the Bali TRAP Committee, I Dewa Nyoman Rai, specifically highlighted the alleged violation of building height. He explained that based on spatial planning regulations, building height is limited to a maximum of four stories, or 15 meters, measured from the ground level.

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This is colloquially referred to as a rule that states no building should be taller than a coconut tree in order to build, as best as possible, in alignment with Balinese cultural philosophies. Rai told the hearing, ”According to the regulations, the ground level is zero. Four stories are clear. But what we observed in the field is five stories. This needs to be questioned and re-examined.”

He added, “This provision is clear. There is no reason for buildings to exceed four stories. If they are found to exceed that, it is a violation of spatial planning.”

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What is clear from these investigations is that the TRAP committee is as committed to identifying longstanding violations as well as new ones.

Hotel Mulia has been operational for fifteen years. This is not the first time the Provincial Government has targeted long-established tourism businesses for newly found violations. In 2025, many communities in Bali were left shocked and outraged at demolition notices that were executed at Uluwatu’s Bingin Beach. 

As for the investigation of The Edge Hotel, which is one of Uluwatu’s most famous properties, the TRAP committee is concerned that the property does not have a permit for use of the cliff edge.

The property, which has been operational for 14 years, is said not to have obtained documents for the Approval of Suitability of Spatial Utilization Activities (PKKPR) or Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL). The investigation is focusing on the hotel’s swimming pool and restaurant.

The hotel has been given until 20th January to get all permits and paperwork in order. The TRAP Committee has been clear, with Rai telling The Edge team, “Until now, there are still gaps in the permits. We’ll see you on January 20th. If there are any more gaps, we’ll have to put up a police line.”

When asked by reporters why this issue had not been detected before, Rai noted that the Badung Regency Public Order Agency (Satpol PP) had conducted site visits but that “We didn’t go down at that time because it was supposed to be the district’s domain, because the permit was low-risk and the district had the authority.”

For now, both hotels remain fully open and operational, and neither hotel has issued any updates that suggest that these ongoing investigations would impact guest experience.