The forest park Taman Hutan Raya (Tahura) in Denpasar is considered one of Bali's main natural shields. It's the island's largest mangrove area with reserve status: it protects the coastline from erosion, supports the ecosystem, and regulates water flows.
During a sudden inspection, Bali's Spatial Planning and Land Committee (DPRD) discovered an operational factory here owned by a foreigner.
According to the committee chairman I Made Supartha, the plot of mangrove forest was registered to a Russian citizen, and the enterprise was already producing construction materials for hotels, villas, and restaurants. Inspectors found finished products in the warehouse, neatly packed and ready for shipment to clients.
When the owners were asked for permits, they couldn't present them. This led to the immediate closure of the factory. Authorities stated they will scrutinize not only the legality of the activities but also the procedure for issuing foreign investment licenses.
Supartha noted there might be significant violations. He said that industrial activities have already occupied dozens of hectares of reserve land, "If mangrove forests turn into concrete fences and warehouses, water will stop flowing downstream. The ecosystem will collapse, affecting all Bali residents," he stated.
Local ecologists and activists supported the decision to close the factory, reminding that illegal development in protected areas on the island has been identified before. The problem is that property rights and licensing often involve shady schemes, and government oversight is delayed.
For those who wish to open a business legally in Bali, the service Legal Indonesia is available. Experts will help to correctly prepare documents, choose the legal form of the enterprise, and avoid problems with inspections. The team provides consultations in three languages, including Russian, and until October 10, offers a free tax consultation.
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