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Bali over tourism escalating

Posted by KadekMonic Rustini on February 3, 2025
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Bali Over Tourism Escalating – CNN Indonesia reports that critical social media remarks regarding Bali’s traffic jams and mounting trash problems support accusations that the popular Indonesian island holiday destination has been overwhelmed by overtourism.

Bali received the unenviable distinction of being mentioned by CNN as one of the destinations that have suffered the most from overtourism. Other media, including Channel News Asia (CNA), have depicted Bali’s tourism charms and attractions as deplorable and rapidly declining. 

The Bali Tourism Service (Dispar) counted  5.2 million foreign tourists visiting Bali and 9.4 million domestic visitors in 2023 through 26 December.

No Longer the Bali we Love to Visit?

In an article titled ‘Not quite the Bali it used to be?” CNA depicted Bali as no longer as relaxing and carefree as it was in the past. The report also mentioned that the Island is now attracting more problematic tourists who commit criminal acts and create public disorder, demanding an increased police presence in Bali.

Escalating Bali Overtourism

Last year, Bali tourists deported 340 foreigners, an increase from the 188 deported in 2022. Most of those shown the door by immigration were from Russia, the USA, the UK, and Nigeria. Many were deported for overstaying their visa, working illegally, and lewd behavior in areas deemed sacred by the Balinese,

Recognized tourism and culture observer-academic Chusmeru blames overtourism for growing environmental destruction and cultural degradation in Bali. “The problem of overtourism is not only the number of tourists but also the disruption and displeasure they impose on local populations, “commented Chusmeru. 

The academic accuses tourists of being impolite, entering areas off-limits to visitors, and posing in lewd and lascivious ways at religious sites.

Tourism leaders in Bali are now actively seeking solutions to the problems of overtourism, which is ruining the Island’s world-renowned reputation and natural environment. Professor Chusmeru called for the government to provide greater education to attract better-quality travelers to Bali. He believes educational programs should emphasize good etiquette and cultural sensitivity when visiting Bali. “Quality tourists are defined not only by their wealth but also by their ability to behave properly and actively participate in preserving Bali’s environment,” Chusmeru explained.

Efforts to foster quality tourism in Bali are made difficult by the rapid growth in arrival numbers.

Chusmeru said the new tourism tax would provide funds to improve tourism management, educate visitors, and support tourism development projects. 

Professor Chasmeru said Bali is at a crossroads between maintaining its cultural identity and adapting to new economic realities. Education and enforcement of regulations by the local government are essential to attract quality tourists who care about preserving the environment and Balinese culture.

“The Balinese people understand that customs, traditions, culture, and religion are inseparable. Sustainable tourism dictates that attention must be paid pay to all these aspects while supporting cultural and environmental conservation,”

No Moratorium on Hotels & Villas

As reported by Detik.com, Bali’s Governor-elect, Wayan Koster, has declared that there will be no moratorium or limitations on building new hotels and villas in Bali. Alternatively, Koster insists he will issue a new Provincial Decree (Perda) to control and manage accommodation development more strictly. 

“There is no need for a moratorium. What’s needed is stricter control,” said Koster after attending a meeting on Thursday, 09 January 2024, held at The Trans Resort in Bali to ratify his re-election and the election of Bali’s deputy governor. 

By abandoning plans for a moratorium on new hotels and villas, Governor Koster said that opportunities would be preserved for new investors to build hotels and villas in Bali. Koster has not explained the specific mechanisms he will include in any new Provincial Decree to control rampant and uncontrolled development in the tourism accommodation sector.

Bali Building Moratorium

“Yes, I will continue to permit the building of villas and hotels. But the rules will be strict,” said Governor Koster.

Earlier, the former Coordinating Minister of Maritime Affairs and Investment, Luhut Binsar Panjaitan, criticized the number of new hotels and villas built in Bali. He expressed his concerns after noting the construction surrounding his home in the Cemagi area of Bali. Rice fields once filled Cemagi in North Kuta but are now inundated with buildings.

Commenting at the time, Luhut said: “No one should be building in rice fields. Let the rice fields remain rice fields so Bali can remain uniquely Bali.”

Echoing Luhut’s sentiments, the former Minister of Tourism and the Creative Economy, Sandiaga Salahudin Uno, also recommended a moratorium on new hotels in South Bali soon be implemented. Sandiaga said that accommodation in South Bali was overbuilt and must be controlled to avoid overtourism.

Koster’s decision to exercise firmer control on new hotel and villa permits rather than impose a moratorium is hoped to strike a balance between tourism development and environmental protection.

Bali Taxi Operation Policies

Bali Taxi Operation policies

What Do Changes To Bali Taxi Operation Policies Mean For Tourists?

Bali will be introducing a series of new policies that will help protect local taxi driver’s livelihoods. There will also be more strict enforcement of existing legislation.

These updates will also have a knock-on effect on tourists and the public, hopefully for the better. 

Online taxi companies Grab and GoJek have agreed with the Bali Provincial Government plans to strengthen and update regulations on what is referred to as special rental transportation (SAK).

The need for change has been made apparent after members of the Bali Tourism Driver Struggle Forum (FPDP) marched to the Regional People’s Representative Council of Bali (Bali DPRD), the office of the provincial government, to make six very specific demands on the 5th January 2025.

The Bali Tourism Driver Struggle Forum wanted to see the Bali Provincial Government put a quota on the number of online taxi service providers allowed to be registered in the province, and this goes for motorcycle and car taxis.

They were also calling on the government to operate stricter regulations when it comes to vehicle rentals for tourists, for both motorcycles and cars.

The third demand called on the government to oversee the creation of a standard set of rates for taxis across the province.

The fourth was to restrict taxi companies, specifically online taxi companies, enabling them to hire or take on freelance drivers with Balinese ID cards only. The fifth demand called for all tourist transportation vehicles to have local Bali Province license plates.

The sixth and final demand was to create a set of standardized skills criteria for tourist drivers coming to Bali from outside the province. 

The Bali Tourism Driver Struggle Forum was concerned that not only were drivers from outside of the province moving to Bali to drive as freelance taxi drivers for these online taxi companies and ‘stealing’ the work of local drivers but that, increasingly, these drivers from other places in Indonesia were potentially breaking local laws and risking the reputation of Bali as a tourist destination.

Oftentimes, online taxi drivers are also seen to be undercutting local taxi drivers since the companies centralize the rates applied by apps like Grab and GoJek. 

The Director of Grab for East Indonesia, Halim Wijaya, told reporters this week “We support the local government’s policy aimed at improving the welfare of the Balinese people, we are also ready to collaborate in creating a more inclusive online transportation ecosystem that suits local needs.”

Since the end of 2024, Bali-based taxi drivers have been raising complaints against online taxi drivers who they say they have observed operating with license plates from outside of the province, contributing to traffic jams due to ‘careless’ pick up and drop off practices, sleep overnight in parking lots, and have been picking up and dropping off passengers in ‘restricted areas’ where local taxi drivers have exclusive jurisdiction. 

Wijaya told reporters that Grab Indonesia will now be making it the case that drivers who wish to register as partners, aka Grab freelance drivers, will have to be Bali residents.

It has always been the case that Grab drivers must show valid documents like a KTP, SIM, SKCK, and STNK before they are allowed to drive for the app.

Wijaya shared, “To be able to register as a prospective partner in Bali, you must have a Balinese ID card or attach a Balinese domicile certificate and use a vehicle with a DK vehicle number plate.” All vehicles registered in Bali have a DK number plate, standing for Kota Denpasar. 

GoJek has issued similar statements, reiterating their support for local communities in Bali. It should be noted that both Grab and GoJek are used as a means of earning income by thousands of Balinese residents already. 

For tourists visiting Bali in both the short and long term, these changes won’t make too much of a difference. However, what these changes will hopefully achieve is a reduction in the tensions between local drivers and online drivers, tensions of which tourists have often been unwittingly caught in the middle. 

Bali Taxi Operator

Tourism Developers To Better Communicate With Locals

Bali Business Developers

Bali Deputy Governor Calls For Tourism Developers To Better Communicate With Locals

The topic of the impact of foreign investment in Bali is hot on everyone’s lips right now. As the incoming Governor and Deputy Governor prepare to start their term, there is a huge conversation happening around how best to control, and in some cases limit, the way in which international investors can operate businesses in the province.

Statements issued this week by the incoming Deputy Governor of Bali, Nyoman Giri Prasta, and the Head of the Bali Tourism Office, Tjok Bagus Pemayun, suggest that some big changes are on the horizon for foreign investors and developers in Bali.

This, of course, will have a knock-on effect on tourists and holidaymakers, for better or for worse. 

The incoming Deputy Governor of Bali, Nyoman Giri Prasta, is presently the Regent of Badung. Badung is the region of Bali that sees the highest concentration of tourism activity and international investment.

Prasta is calling for foreign investors to go above and beyond their legal obligations when it comes to building properties and developing businesses in the province.

He is calling for foreigners to ensure that they gain approval from local communities before proceeding with their plans.

At present, most large-scale business developments in Bali are granted permission through the Online Single Submission (OSS) System, which is operated by the central government. This means that, technically, huge tourism developments in Bali can be granted permission to proceed without anyone consulting neighboring businesses and communities. 

Prasta told reporters “The permit can be done at the center through the OSS. Only investors must have communication at the regional level. Not only carrying out development activities.”

He suggests that the OSS system can grant international investors permits too easily and free from the requirement to consult local stakeholders. Prasta shared,” The important thing is that whatever the development is, at least the local government must know. At least the village government, sub-district, and traditional villages must also know.”

He concluded, “Don’t let later there be a building and be accepted in OSS. But the local community does not accept, automatically the investment cannot work.” 

Other tourism leaders in Bali have been tabling their visions for better controlling what has often been described as ‘rampant’ tourism development in the central south of the province.

This rapid development has triggered a series of unintended consequences for local residents and tourists: overloaded waste management facilities and widespread traffic congestion, to name but a few. 

The Vice Chairman of the Indonesian Hotel and Restaurant Association, I Gusti Ngurah Rai Suryawijaya, is calling for the minimum amount of investment to be raised for foreign-owned businesses seeking to operate in the province. 

Suryawijaya told reports that the current minimum investment limit (PMA) is IDR 10 billion, a figure he feels is too low and, therefore, too accessible to mid-level investors. He wants to see the minimum investment limit increased ten-fold to IDR 100 billion. He also feels that this would give local entrepreneurs more of a chance in the market.

Suryawijaya outlined, “We must emphasize that starting from 2025, the rules are enforced vertically. So, I believe [incoming] Governor Koster and Prasta will do that.” He added, “We must discipline ourselves, industry discipline, and society to support the direction of quality, sustainable and dignified tourism policies.”

As a result of this week’s formal closure of PARQ Ubud, a prominent internationally owned tourist resort and residential complex, the topic of the impact of foreign investment in Bali has hit the headlines once again.

Speaking to reporters on the topic of the PARQ Ubud closure, Suryawijaya said that in addition to greater restrictions on investment, there needs to be more surveillance of foreigners who conduct businesses in Bali to ensure that these operations are being run by national and provincial law. 

Suryawijaya explained, “It needs to be evaluated so that they don’t take jobs from local residents. Previousl,y we invited them to come and work in Bali, but as long as they follow the rules, it’s no problem. However, if they continue to violate the rules like this we will conduct surprise security checks.”

Bali Business Development

PARQ Ubud Formally Shut Down

Bali Ubud ParQ Shut Down

PARQ Ubud Formally Shut Down As Business Found To Violate Multiple Regulations

In November 2024, PARQ Ubud, a residential and lifestyle complex located just outside of central Ubud in Bali, was closed down by authorities on the grounds that the business was operating without the correct licenses and on suspicion of being constructed against building and environmental regulations.

The business was given a period of grace to get papers in order, but in failing to do so, the authorities have closed the premises down for good this week. 

PARQ Ubud, also referred to by many as ‘the Russian village’, was formally closed down by the Gianyar Regency Government on Monday 20th January.

Speaking to the media during the formal takeover of the property, the Assistant for General Administration of the Regional Secretary of Gianyar Regency, Ketut Pasek Lanang Sadia, explained that the closure was carried out based on the Decree of the Regent of Gianyar Number 285/E-09/HK/2025.

Sadia explained, “The cessation of business activities and the closure of the PARQ Ubud business premises located at Jalan Sriwedari No. 24 Banjar Tegalantang 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.”

The closure was carried out by dozens of officers from the Gianyar Civil Service Police Unit, and footage circulating online shows officers removing a number of individuals from the scene in a moment of tension. Sadia added, “The closure was carried out in accordance with the Law and Regional Regulations of Gianyar Regency, and has gone through several stages.”

PARQ Ubud was first investigated back in April 2023, when Civil Service Police Officers conducted a spot check assessment of the property. Officers inspected the visas and residency permits of the individuals living at the premises. While no violations were found, investigations remained ongoing, until November 2024 when officials from the Gianyar Regency Government issued temporary closure notices. 

On Thursday 23rd January the Ex-Deputy Governor of Bali and Head of the Bali Hotel and Restaurant Association, Cok Ace, told reporters “This has been an issue for a long time and I myself have also conveyed the meaning that when you are going to build a business, first look at the mechanism to see if it is correct, as in reality, you don’t have a permit when you have a business registration number or NIB as a reference, even though there are many things that need to be completed below that.”

He suggested that the closure of PARQ Ubud could mark the start of a series of crackdowns on foreign-owned tourism, hospitality, and property businesses in the province.

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.”

Speaking to The Australian from Jakarta the Russian Ambassador to Indonesia shared “I don’t believe the people accusing Russian tourists of being the worst among foreign visitors who don’t obey laws and customs in Bali.” He added, “I’m sure it’s not only Russians who commit crimes.” 

There have been suggestions that the founders of PARQ will be responsible for returning the 5-hectare property back to its natural state.

The site currently features a 103-room hotel and residential complex, co-working spaces, gyms, restaurants, and event spaces.

The Head of the Bali Tourism Office, Tjok Bagus Pemayun, told reporters in a press conference “What is clear is that I want everyone to be open. Foreigners, as long as they follow the existing regulations, whether it is doing business in accordance with the rules, they are allowed to do business, or activities during a vacation in Bali, which are allowed and which are not.”

PARQ Ubud, nor PARQ Development have issued a public statement regarding the closure since the closure foreigners have still been seen to be accessing the property.

On Thursday 23rd January access to the site was still possible with the opening display “’Welcome to Parq Ubud, the city of the future” still present, alongside government closure notices.

Ubud Businness Shut Down

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