Why Following Regulations Matters in Bali’s Property Development


Lembongan Island, usually known for its peaceful vibe, recently made headlines due to a controversial villa construction project. This incident highlights just how crucial it is to follow the rules, especially in a place like Bali, where the environment and cultural traditions are so closely guarded.  

Authorities Halt Unpermitted Construction

A shocking video has gone viral, showing a villa being built on Lembongan Island, Nusa Penida, in a damaging way. The footage captures heavy machinery tearing into a cliff and dumping debris into the pristine sea below.

This has angered many people, as the development clearly violates environmental safety regulations, especially considering that Lembongan Island is a conservation area. Additionally, the underwater area where the debris is being dumped is a popular spot for tourists to engage in diving and snorkeling.

The villa, owned by Australian David John O’Boyle, was found to be under construction without the proper permits. Samiyono Widodo, the project manager, claimed that permits were still in the process of being obtained.

A joint team from local government agencies, including the Public Works Agency, Environment and Land Agency, along with Satpol PP (Civil Service Police Unit in Indonesia), inspected the site and ordered the construction to stop. They stated that work must cease until all permits are secured and a formal commitment to halt operations is made.

“Given the clear violations, we have taken decisive action to stop the work. Construction will only resume once all necessary permits are in place,” said Dewa Putu Suwarbawa, Head of the Klungkung region’s Civil Service Police Unit, on August 20. 


Strict Enforcement on Violations

The incident drew attention not only from Indonesian netizens and the local government in Bali but also from Indonesian Tourism Minister, Sandiaga Uno, who called for strict action against villa owners who violate the regulations. 

“Tourism must be high-quality and sustainable, adhering to principles of environmental conservation. What we offer tourists goes beyond sun, sea, and sand; it also includes serenity, spirituality, and sustainability,” Sandiaga Uno stated during The Weekly Brief with Sandi Uno in Jakarta on Monday, August 19.

He emphasized the importance of these principles and warned that firm action would be taken against rule-breakers.

The minister also highlighted that violations in villa construction projects are common in tourist areas across Indonesia. He referenced a similar case in May 2024 involving a hotel being built at Tebing Batu Kapur in Pecatu Village, Bali.

“I will coordinate with the authorities to ensure intervention, and the violators will face sanctions or legal action according to the law. We are very strict about such issues. Tourism facilities that have the potential to harm nature must not be built,” Sandiaga Uno added.


Proper Permits and Cultural Compliance

When it comes to property development in Bali, obtaining the proper permits and authorization from local government authorities is not just a formality—it’s a critical step. For instance, before beginning any construction, developers must conduct a thorough zoning check to ensure that the land is designated for the intended use. This is especially important in tourism areas, which often have more specific and stringent regulations regarding land use.

In Bali, where tourism is a key economic driver, the rules governing property development are particularly strict. The island is not only a popular tourist destination but also a region deeply rooted in cultural, religious, and environmental values. These aspects are carefully protected, and any development that threatens to disrupt this balance faces serious scrutiny.

Building Construction Permits, for example, are mandatory for any new project. These permits ensure that the construction adheres to zoning laws, respects the environment, and aligns with Bali’s cultural and religious standards. Failing to obtain the proper permits can result in severe penalties, including project shutdowns, legal action, and the potential for significant financial loss.


Seamless Real Estate Investment in Bali

Dealing with the complexities of property development in Bali requires partnering with a trusted local expert. At Seven Stones Indonesia, we specialize in managing all aspects of construction and building permits, starting with comprehensive due diligence on the property before any transaction occurs. Our due diligence service includes thorough zoning checks, ensuring your project is fully compliant with local regulations.

We also assist in applying for the proper permits and business licenses, making it easier for foreigners to invest in Bali’s real estate market. For foreign businesses in Indonesia, working with a team that has a deep understanding of legal aspects and regulations is crucial. Don’t hesitate to contact Seven Stones Indonesia to discuss your real estate plans. Let’s start your journey towards a successful and compliant investment in Bali. 

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