Bali to ban building of some hotels, villas, and nightclubs to tackle over-development

JAKARTA – Indonesia has agreed to set a moratorium on the construction of hotels, villas and nightclubs in some areas on the tourist resort island of Bali, as it grapples with the over-development of land, a senior ministry official said on Sept 9.

The moratorium is part of the government’s bid to reform tourism on Bali, one of Indonesia’s main attractions, to try to boost quality and jobs while preserving the island’s indigenous culture. A moratorium is defined as the temporary prohibition of an activity.

Hermin Esti, a senior official at the Coordinating Ministry of Maritime and Investment Affairs, told Reuters the government had agreed to set the moratorium, although the exact timeline was still being discussed.

On Sept 7, Bali’s interim governor Sang Made Mahendra Jaya said he suggested the moratorium in four of Bali’s busy areas to the central government, taking aim at over-development for commercial purposes, such as hotels, villas, and beach clubs.

The governor’s office and Indonesia’s tourism ministry did not immediately respond to requests for comment on Sept 9.

The moratorium could stretch up to 10 years, senior minister Luhut Pandjaitan was quoted by news website Detik as saying on Sept 8.

Mr Luhut has previously said about 200,000 foreigners now live in Bali, contributing to problems such as crime, overdevelopment and competition for jobs.

Foreign arrivals in Bali have surged since it reopened for tourism after the Covid-19 pandemic. Videos of misbehaving tourists often go viral, angering residents and sparking harsh responses from social media users in Indonesia.

Government figures show 2.9 million foreign visitors arrived through Bali airport in the first half of 2024, making up 65 per cent of total foreign arrivals by air.

There were 541 hotels in Bali in 2023, the figures show, up from 507 in 2019. REUTERS