The controversy surrounding the closure of PARQ Ubud, also known as the “Russian Village,” continues to unfold. Bali Police Chief, General Inspector Daniel Adityajaya, has announced the launch of an official investigation into the case. He emphasized that all actions taken were aimed solely at ensuring safe and high-quality tourism in Bali.
Adityajaya revealed that upon assuming his position as Bali’s police chief, he immediately began examining the details of this large foreign community in Ubud.
“We thought it was unimaginable that within one country, there could exist something like a separate state with such a distinctive name,” he stated.
During the investigation, authorities discovered that local residents were not allowed to freely enter the PARQ premises.
“After that, we started looking into the legal status of this area, as well as the building itself—reviewing documents, contracts, how it was constructed, and under what legal basis,” he explained.
“Since this place stood out so suspiciously within our fully sovereign country, we believed it deserved scrutiny. We suspected that illegal activities such as money laundering, drug trafficking, and other crimes might be taking place there.”
The police also found that transactions at PARQ were conducted in cryptocurrency, which is strictly prohibited in Indonesia.
“When someone wanted to enter, for example, to dine at a restaurant, they were allowed in. However, most of the tenants were not from Indonesia. We discovered that payments here were made in cryptocurrency, which is, of course, illegal. It is well known that financial transactions in Bali must be conducted in Indonesian rupiah,” Adityajaya clarified.
Further investigation into the legal status of the company that owned PARQ Ubud revealed that it lacked the necessary business permits.
“The company applied through the OSS system but failed to obtain the required PKKPR permit (which grants the right to use land in accordance with zoning and land use regulations),” he continued.
Additionally, the property had no construction permits, despite being built on a 1.8-hectare plot of protected agricultural land. Several permits for construction and tourism-related activities were missing or invalid.
Upon discovering these serious legal violations, Bali police took swift action. They sealed off the complex and held its owner accountable.
Arrest of German National and Land Ownership Controversy
A 53-year-old German citizen, Andrey Frey, was arrested. He controlled 34 land ownership certificates, which previously belonged to local Ubud residents.
“In a P1 (protected land) zone, villas, a spa center, and a livestock farm (still under construction) had been built. A detailed review confirmed that this land had been illegally reclassified from agricultural use,” the police report stated.
Authorities interrogated 33 witnesses and three expert analysts, including representatives from the Bali provincial government, Gianyar Regency, district and village officials, and former landowners.
Frey has been formally charged with illegally altering land use designations. The PARQ Ubud complex was sealed in November 2024, and on January 20, 2025, the decision was made to permanently shut it down.
“We are looking at this not just in the context of the ‘Russian Village’ but on a larger scale—Bali’s safety must be a priority. Ensuring this is essential to maintaining high-quality tourism on the island,” concluded Bali’s police chief.
Sources: detik
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