You know how Bali’s villa market has been booming? Well, recently the local government has been making sure all villa owners dot their i’s and cross their t’s. Initially, the Regional Finance and Asset Management Agency focused on getting a better handle on new villa taxes.
However, this effort has also spotlighted a bigger issue: some developers seem to be skipping crucial steps like obtaining proper building permits and protecting the environment. These recent checks indicate a growing push for comprehensive accountability, where running a good business in Bali means respecting all legal obligations for a sustainable future.
Non-Negotiable Adherence
This increased scrutiny has led to direct action, as seen in the recent sealing of a villa project in Ungasan, Badung. Authorities stepped in when the developer couldn’t provide necessary land documents and construction permits, raising concerns about a clear violation of local regulations. This immediate halt underscores the seriousness of ensuring proper land use and adherence to zoning laws.
Head of the Badung Civil Service Police Unit, I Gusti Agung Ketut Suryanegara explained that the developer was summoned by PPNS to explain the land status and permits to utilize the location point which is estimated to be a dry river or stream. However, they did not bring the requested documents.
“We finally made a statement letter. The developer has not been able to show data such as certificates, licensing documents, and others. So we have temporarily stopped the project until we get valid detailed data regarding land ownership,” said Agung Surya, Wednesday (13/3/2024)
Similarly, in the popular Canggu, Kuta Utara, another villa project faced a shutdown. In this instance, the developer’s actions included blocking vital irrigation canals and proceeding without the necessary coordination with local village and customary leaders, in addition to lacking proper permits. This case highlights the importance of community engagement and respecting local infrastructure alongside formal legal requirements.
Further demonstrating this trend, a villa construction in Saba Village, Gianyar, received an official warning and a halt to work. The reason? The developer had not secured the mandatory building permits as stipulated by Gianyar Regency regulations. This instance serves as a reminder that even at the initial stages of development, adherence to fundamental building laws is non-negotiable.
Accountability Pillars for Sustainable Development
The consequences of neglecting these fundamental legal obligations are becoming increasingly apparent, as evidenced by several recent interventions by local authorities.
These real-life cases not only highlight the immediate repercussions for non-compliant developers but also underscore the critical areas where accountability is now being rigorously enforced for the sake of sustainable development in Bali. To navigate this evolving landscape and ensure long-term success, developers must prioritize the following key pillars of accountability:
• Securing Proper Permits and Zoning Compliance:
The recent actions by local authorities serve as a clear reminder that securing the correct building permits (PBG) and adhering to zoning regulations are non-negotiable. As seen in the cases in Ungasan and Gianyar, proceeding without these fundamental approvals can lead to immediate project halts and significant legal hurdles. Developers must prioritize thorough due diligence on land status and navigate the permitting process diligently from the outset.
• Environmental Stewardship and Community Respect
Beyond the essential permits, environmental stewardship is increasingly paramount. The Canggu case, where irrigation canals were obstructed, underscores the responsibility developers have to the surrounding ecosystem and local infrastructure.
Sustainable building practices, proper waste management, and a commitment to preserving the natural environment are no longer optional; they are integral to maintaining a positive relationship with the community and ensuring the long-term viability of projects in Bali’s sensitive landscape.
• Financial Transparency and Tax Compliance:
Furthermore, as highlighted by the initial efforts of the Regional Finance and Asset Management Agency, financial accountability through proper tax compliance is a fundamental obligation.
Ensuring accurate reporting and timely payment of all relevant taxes contributes to the overall well-being of the region and avoids potential legal and financial complications. This proactive approach to fiscal responsibility demonstrates a commitment to ethical business practices and fosters trust with local authorities.
Strategic Business Perspective
Beyond the crucial need to adhere to local regulations, embracing accountability offers significant strategic advantages for property developers in Bali. It answers the fundamental question: why should developers prioritize compliance beyond simply avoiding penalties? The answer lies in the tangible benefits that responsible practices bring to their bottom line and long-term success. The strategic advantages of embracing accountability:
— Enhanced Project Efficiency and Reduced Costs:
By proactively securing proper permits and adhering to regulations, developers can avoid costly project delays caused by stop-work orders, prevent unexpected fines and penalties, and ensure smoother project progression, ultimately leading to better financial outcomes.
— Stronger Brand Reputation and Increased Trust:
A commitment to legal and environmental standards cultivates trust among potential buyers, investors, and local communities. Positive publicity surrounding compliant and responsible projects enhances brand image, making future developments more attractive and easier to gain approval for.
— Increased Investor Confidence and Funding Opportunities:
Demonstrating a strong track record of legal compliance and ethical practices attracts investors who seek stable and reliable ventures. This increased confidence can unlock more funding opportunities for current and future projects, fostering sustainable growth.
— Long-Term Business Sustainability and Growth:
Developers who prioritize regulatory adherence and environmental responsibility are better positioned for long-term success. By operating ethically and sustainably, they mitigate risks, build positive relationships with stakeholders, and create a foundation for enduring growth and stability in Bali’s competitive market.
Follow the Right Laws
To build a successful and lasting property business in Bali, understanding the local rules and doing things ethically are very important.
At Seven Stones Indonesia, we are experts in making sure your business setup and property investments follow all the right laws and care for the environment. If you’re ready to invest or start your business in Bali and want to do it the right way from the beginning, get in touch for a chat. Let our experienced team help you achieve long-term success.