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Fait Accompli or Faux Pas

60-Room Alaia Echo Beach Hotel in Canggu Nears Completion without a Formal Building Permits Amidst a Plethora of Complaints from Neighbors.

Bali News: Bali, Indonesia, Canggu Beach. PHM Hospitality, The Have Seminyak, The 101 Legian, PT. The Alaia Echo Beach, David Chandra, Zoning violations, IMB, RTRWP, Panorama Indah Tours, Panorama Group, Tirtawisata, Panorama Group, Panorama Tours
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According to Radar Bali, a five-storey, 60-room resort property is at an advanced stage of construction on Echo Beach, Canggu, North Kuta, but still lacks a legal building permits (IMB) and is alleged to be in violation of several zoning regulations relating to open-land coefficients and minimum set backs from adjoining property lines.

Meanwhile, a report regarding the same property published in NusaBali quotes the Badung Tourism Authority as insisting that while all permits for the hotel may not be in hand, the needed licenses are “on the way” and the hotel meets zoning requirements.


According to the Radar Bali reports, the 60-room property is crowded into a modest 15-are plot (1,500 square meter) filled almost entirely by building structures and, as such, ignoring zoning rules requiring an open-land coefficient of 60%.

As reported by Radar Bali, neighboring properties surrounding the project are vociferously complaining that the hotel violates zoning restrictions; lacks principal permits, UPL/UKL (environmental permit recommendations), has bypassed the need for a mandatory environmental impact study (Amdal) and the required letters of “no objection” (persetujuan penyanding) from adjoining property owners – all items required to erect a commercial structure in Bali.

While building permits (IMB) should be obtained before construction is commenced, it is not uncommon in Bali for projects to commence construction while still processing the IMB. However, the technical drawings must correspond exactly with the actual building project and conform to an entire range of zoning criteria stipulating maximum height, set backdistances from roads and waterways, set backs from adjacent structures, and open-area coefficients.

These regulations require 60% open-land be preserved for tourism accommodation projects. Those rules also mandate a 2-meter setback from property lines on the right, left and back of such a project – a rule Radar Bali contends is being ignored by those building the hotel project in Canggu.

David Chandra, one of the neighbors, who owns a house immediately to the south of the hotel project, has protested to Radar Bali regarding the construction, claiming the project developers have failed to seek his written acggreement required for the project to go ahead.

Another Version

An article in NusaBali, reports that  Badung Tourism Authorities have come to the defense of the Canggu hotel project, insisting it is permissable to issue the project's principle permit (izin prinsip) in the absence of the formal letters of agreement from owners of neighboring parcels of land.

Head of the Badung Tourism Service, Tjokorda Raka Darmawan, said: “Indeed, the rules required agreement from the neighbors. However, if the neighbors are hard to locate, the applicant must then make a statement affirming that they have been unable to locate the neighbors.” This declaration statting that the neighbors are difficult to locate must also be counter-signed by the local village head.

It is unclear if thee requirements were met by the Echo Beach Hotel Project developers. That the neighbors are now publicly protesting the project in the press would, however, suggest they are neither in agreement with the project nor difficult to locate.

Raka Darmawan said compliance with local zoning laws is not a matter for his office and is under the authority of the Badung Zoning Office. “We only check that the project complies with permitted use categories for that location. If there are complaints from neighbors, we hope this can be settled in an amicable way without involving government authorities,” he explained.

NusaBali reports that while the project still lacks a building permit (IMB), the hotel does hold a principle permit (izin prinsip), and a recommendation in hand for environmental permits.

A recommendation letter issued by the Badung Environmental Agency (BLH) lists the project as a “melati” class hotel with 76 rooms spread over four floors plus an additional 5th floor listed as a “semi-basement.” The same recommendation indicates the project as an open-space coefficient of 68.13% - a figure well above the 60% minimum required by current zoning laws.

Technical drawings have reportedly been submitted in support of an IMB and, according to Nusa Bali, the Badung Zoning Office has approved the building permit for which the have paid an official fee of Rp. 330.9 million (US$35,760).

Legislators Promise to Investigate

Members of Commission A of the Badung House of Representatives (DPRD-Badung) have announced their intention to visit the site of the hotel to conduct a field survey. Made Dharma, who is a member of Commission A, told the press that the new hotel project must conform to all existing rules and regulations, including coefficient rules and set-backs from neighboring property lines.

More on Alaia Echo Beach

The owner of record for the hotel project is PT. The Alaia Echo Beach.

A separate report in Travel Trade Gazette Asia (TTG) states that the publicly listed Panorama Group’s hospitality division, PHM Hospitality, owns the hotel project.

The Alaia Echo Beach is reportedly being pitched as a three-star premium hotel scheduled for opening by the end of 2012.

PHM Hospitality currently manages The Haven Seminyak and The 101 Legian – both located in Bali, They have another six properties under construction in Jakarta, Bogor, Jogjakarta and Bali.

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


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