Governor Koster Rejects Moratorium on Hotels and Villas in Bali

Overdevelopment Becomes a Major Issue in Bali, Hotel Moratorium as a Solution
Overdevelopment Becomes a Major Issue in Bali, Hotel Moratorium as a Solution?
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The rapid conversion of Bali’s lush landscapes into hotels and villas has stirred intense debates, prompting many to call for a halt to further development. However, Bali’s newly elected Governor, Wayan Koster, has taken a different stance, opting not to impose a moratorium on the construction of these establishments in Bali.

Instead, Koster plans to implement a regional regulation (Perda) aimed at ensuring stricter control over development. Speaking after the confirmation of his election as Bali Governor at The Trans Resort in Badung on January 9, 2025, he emphasized this approach.

“A moratorium is unnecessary. What we need is strict control,” Koster stated, as quoted on January 13.

This decision leaves the door open for investors interested in building hotels or villas in Bali. However, Koster has not yet revealed the details of how the regulation will enforce this control.

The debate over development is not new. Prominent figures like former Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, have expressed concern about the unchecked proliferation of construction projects. Luhut specifically criticized the disappearance of rice fields around his residence in Cemagi, North Kuta, which have been replaced by buildings.

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“No more villas should be built on rice fields. Let the rice fields remain so Bali can maintain its unique identity,” Luhut urged.

Former Tourism and Creative Economy Minister, Sandiaga Salahudin Uno, also weighed in, suggesting a moratorium on hotel construction in southern Bali. He argued that the region’s overbuilt state necessitates measures to prevent over-tourism.

“It feels like southern Bali is overbuilt already, so controlling it is essential to avoid over-tourism,” Sandiaga said.

Governor Koster’s approach, focusing on tighter development controls rather than outright restrictions, has raised hopes for a balanced solution. This strategy aims to support Bali’s thriving tourism industry while preserving its iconic environment and cultural heritage.

By opting for a regulatory framework instead of a moratorium, Koster seeks to address both investor interests and environmental concerns, striking a delicate balance that could shape the island’s future.