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A Raging Redundancy of Rooms

Officials Insist Moratorium in Effect on New Hotel Building in Baliís South

Bali News: Bali, Indonesia, Denpasar, Badung, Gianyar, BKPM, moratorium, BPMP, IB Made Parwata, Investment and Licensing, investment black list, Investment Coordinating Board, Hotel investment
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The policy of the provincial government of Bali imposing a temporary moratorium on the issuance of principal agreements to investors for new accommodation projects remains in place.

The head of the Investment and Licensing Body (BPMP) for Bali, IB Made Parwata, on Monday, July 30, 2012, told Bisnis Bali that his office and the head of the Investment Coordinating Board (BKPM) were in agreement to close new investment in accommodation in South Bali in order to more evening distribute tourism development in Bali.

Parwata said his office continued to be bound by instructions to implement a moratorium issued by the governor of Bali on December 27, 2010 sent to the national office of BKPM. The BKPM will not issue principal permission for new accommodation projects in South Bali to foreign investors.

He estimates that there are 2,190 accommodation providers in Bali providing 45,557 rooms. 85% of these rooms are concentrated in Bali’s capital of Denpasar, Badung and Gianyar. For this reason, he said, the BKPM, BPMP and other agencies are refusing requests for domestic and foreign investment projects in those areas.

By limiting new licenses officials hope to encourage investment projects in other areas of Bali and spread the economic benefit that accompanies these projects to less developed areas of the island. By encouraging new investment in Bali’s hinterlands, officials also hope to reduce the stress on the overburdened infrastructure in the island’s south.

Parwata suggested that the moratorium on new accommodation projects in South Bali may be strengthened further by placing such projects on the “negative list” of investments issued by the  central government making its illegal to launch new accommodation ventures in Bali’s southern regions.

Parwata said that the new hotel projects now being opened or constructed in South Bali are connected to investments approved before the December 2010 moratorium was declared.

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