It seems the era of endless development and the proliferation of uniform mini-markets in Bali is coming to an end. Governor Wayan Koster has moved from words to action and issued two landmark decrees that are set to drastically change business rules in Bali.
Building on rice fields? That's a criminal offense now!
According to decree No. 5, local authorities are strictly prohibited from granting permits to convert agricultural land for the construction of villas, hotels, or stores.
This applies to all "green zones" (LP2B) and existing rice fields (LBS). If an official signs off on a permit or a developer decides to pour concrete over a rice terrace, they face not only fines of up to 1 billion rupiahs but also real prison terms of up to 5 years.
The head of Bali's investment department, Suka Negara, confirmed that loopholes are closed: “Don't even try to submit documents for construction in a green zone. The system is set for automatic rejection. No options.”
Stop, market! Moratorium on chain stores
The second legislative bombshell from the governor is decree No. 6. Bali is taking a break from opening new chain supermarkets (yes, the ones where you could buy cold water and snacks).
Wayan Koster stated bluntly: the expansion of chains stifles local charm and kills small businesses. Essentially, it's a direct protection of warungs and small local shops from Mini Mart, Circle K, Indomaret, and AlfaMart.
Issuing any permits for the construction and opening of new chain retail points is now banned.
This decision is part of the global plan “Era of New Bali 2025-2125.” The authorities want to see the island as authentic, not turned into one continuous supermarket.
Both instructions took effect immediately and will remain in force until comprehensive regional laws are adopted. The governor has already informed Jakarta of his decisions.
Those considering starting a business in Bali should take into account local rules and restrictions. Legal Indonesia offers a full range of services from company registration to full business support, including any tax and legal issues. The team ensures compliance with legislation and transaction security in the context of constantly changing rules.
Sources: detik, baliberkaya
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