The Indonesian authorities plan to introduce a new law that will halt the construction of new hotels, villas, resorts, and some entertainment venues in Bali’s most popular tourist areas for the next three to five years. Initially, a ten-year freeze was discussed.
Local officials also hope that decisions regarding construction will be made locally, rather than off-island.
Although final details have not yet been disclosed, officials have already announced when the moratorium will take effect. Indonesia’s Minister of Tourism, Sandiaga Uno, officially declared that the construction ban will begin in October 2024. This move aims to curb the rapid growth of resorts in southern Bali, particularly in the popular areas of Canggu and Uluwatu.
"We've already submitted the request and are awaiting the final decision. We hope everything will be approved soon so we can start in October," Uno noted.
This measure is necessary to stop the conversion of agricultural land into commercial properties, which are mostly used for tourism. The new policy is also expected to address the increasing traffic congestion on the island.
Fewer new buildings will mean fewer cars, including construction vehicles and tourists' private vehicles. Additionally, the construction halt will provide an opportunity to improve roads and develop better transportation solutions for Bali.
Traffic in Bali is a problem everyone faces, including the Minister of Tourism. During his visit to the island, he had to apologize to event participants for being delayed due to traffic jams.
Minister Uno said: "The need for this measure is obvious. It was incredibly crowded even as I was driving here. I apologize for being late—the traffic was terrible. The strain on the roads has almost reached its limit."
The moratorium will be in place for three to five years, but Minister of Maritime Affairs and Investments, Luhut Pandjaitan, stated that the period could extend to ten years, depending on the evaluation. He emphasized that the goal is to create a long-term impact, not just a temporary solution. Locals and businesses are waiting for the moratorium's release to understand how it will affect construction and land conversion.
Bali loses an average of 2,000 hectares of rice fields every year. In addition to that, other agricultural areas, coastal zones, and village communal lands continue to be developed.
According to the Indonesian Hotel and Restaurant Association (PHRI), the country currently has 29,005 hotels and other accommodation facilities, with 747,066 rooms. On Airbnb alone, there are over 61,000 listings in Indonesia, with about 34,000 of them in Bali.
Sources: denpasar.kompas.com, detik.com
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