A scandal is unfolding in Denpasar regarding a factory for building materials, constructed in a protected mangrove forest. The EcoCrete enterprise was located behind a limestone road along the Ngurah Rai highway and remained unnoticed for a long time until the Bali Special Committee on Spatial Planning, Assets, and Licensing (DPRD) conducted a surprise inspection on September 17.
It turned out that the factory is registered as a foreign investment enterprise (PMA) and belongs to seven Russian nationals and one Indonesian. The 1.4-hectare site is leased from four local residents for 20 years. Despite having several permits, the company never submitted an environmental impact analysis (AMDAL) — a mandatory document determining the impact of activities on nature, water resources, and human health. Without it, the enterprise has no right to operate.
After the raid, the factory was temporarily sealed by Bali's municipal police, leaving only one guard on the premises. Production has stopped, trucks are parked behind the fence, and the workshops are empty. According to the guard, about 25 workers, mostly migrants from Java and other regions, lost their jobs and left for their homes.
However, the investigation led to a much more serious problem. The National Land Agency (BPN) discovered another 106 plots with private certificates overlapping with the Ngurah Rai forest park lands. Formally, the owners are listed as local residents, but they leased the land to companies with foreign capital. An inspection is ongoing: whether an error lies in old cadastral maps or certificates were issued illegally. If the land is confirmed to belong to the forest park, the documents may be annulled.
The situation is complicated by the fact that some certificates were issued before the area gained forest reserve status. "We need to determine what came first — private ownership or the forest area. If the forest was already recognized as such, the certificate could not have been issued," explained BPN head Made Daging.
The DPRD also reminded that this area contains small river channels that should direct water to the ocean. Today, many coastal lines are built up, which, according to committee chairman Made Suparta, directly leads to the risk of flooding.
Governor of Bali Wayan Koster acknowledged that part of the land in the Tahura area indeed belongs to private individuals. In such a case, construction with an official certificate can be considered legal, but activities must be strictly monitored. He emphasized that the government is open to investors, but violators face severe sanctions.
The management of EcoCrete has not appeared at the site after the raid and is not communicating with the press. The prosecutor's office and the forestry agency continue their inspections, while the DPRD is preparing new challenges for the company.
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