Governor of Bali Will Asks Regents to Stop Issuing Accommodation Building Permit


Governor of Bali, Made Mangku Pastika, will send a letter to regents and mayor whose territory is located in the Southern region of the island to stop the issuance of building permit (IMB) for various tourism accommodation facilities.

“I had always hoped the construction of tourist accommodation in the South of the island be stopped and diverted to the North, East and West so that there is equity,” he said after attending a plenary meeting of the Provincial Parliament of Bali, in Denpasar on Monday.

The problem, he said, regents/ mayor who led the area in the Southern part of Bali, the regency of Badung, Gianyar and Denpasar, continued to issue a new permit.

“We’ve designed another letter containing the assertion, we hope that the building permit for the construction of tourism accommodation facilities is stopped,” he said.

The former Bali police chief said that the crowded tourist accommodation facilities in the Southern region gives impact on the excess number of hotel rooms, tariff competition and ultimately degrades the quality of service provided to travelers.

“It could be affecting the overall image of Bali tourism,” said Pastika.

Pastika previously also expressed consideration to resend the letter to the Investment Coordinating Board (BKPM) related to implementation of moratorium on hotel development in the southern region of the island.

“My suggestion to BKPM is that they do not give permission for the new five-star hotel accommodation especially in the area of Denpasar, Badung and Gianyar. If someone wants to invest, they are directed to the North, East and West as well as the central part. It was my proposal and previously BKPM would follow it up,” he said.

He believed that if the permit for foreign investment (PMA) and domestic investment (PMDN) related to tourist accommodation through BKPM, certainly the proposal has been submitted by BKPM to the investors. However, he did not deny that sometimes local governments grant permission on the basis of regional autonomy.

Meanwhile Gianyar Regency government asked Bali Governor to review the plan.

“We are not refusing, but it should be calculated first and reviewed for the best for the community and what the governor wants,” said Vice Regent of Gianyar I Made Mahayastra on Tuesday.

According to him, Gianyar regency is not in a position to talk about profit and loss related to the plan, but allows the Bali provincial government to improve tourism conditions.

“However, will the plan be valid for hotels only or it can be other accommodations. So, please discuss it again and we will invite the governor to explain what he meant to. Mainly, there should be communication first,” he said.

Mahayastra added that the characteristics of hotels in Gianyar are different from hotels in Nusa Dua, Badung regency and the city hotels in Denpasar.

“Hotels in Gianyar are close to villages and tourists can stay at people houses. Average occupancy rate is between 70-80 percent,” he said.

Meanwhile Buleleng Regent Putu Agus Suradnyana supported and encouraged the Governor of Bali’s plan for an equal development in the Northern and Southern part of Bali.

“But previously all Regents/ mayor must sit together first, then all agree to the rules. If the regents and mayor have agreed together, the new rules will be able to run properly. Essentially there must be understanding for all,” he said.

Agus Suradnyana said that the investors’ constraints to invest in Buleleng is because it is located at North of the island of Bali because of the limited infrastructure. They wanted to keep the infrastructure better prepared, closer to the center of activities, closer to tourist destinations and airports.

“To attract more investors, we’ve also done promotion and so on, but investors do have their own calculations, they have a feasibility study and calculations so its turnover is faster,” he said.

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