Based on surveys and monitoring carried out by the Tri Hita Karana Foundation and the Bali Tourism Academy (STP), more than 1,000 commercial villas in the regencies of Badung and Gianyar have been built illegally using residential building permits (IMB).
The building and zoning codes applied to the construction of commercial villas are more stringent than those in effect for villas built purely for private use.
According to Beritabali.com, the survey revealed that many of the 1,000 commercial villas built with permits applicable for private residences offer supporting facilities in keeping with five-star hotels with rents of Rp. 5 million (US$520) or more per night.
The chairman of the Tri Hita Karana Bali, IGN Wisnu Wardana, told the press on November 14, 2012, that the survey that was conducted in stages and showed how disjointed and the confused state of government procedures in the granting of building permits, bearing in mind that permits granted for tourist accommodation are linked to the number of rooms planned for the subject property.
As explained by Wisnu Wardana: “The initial process when someone wants to build, they must first seek a building permit (IMB). This is (typically) only for one complete home. If, for instance, someone wants to build an inn (pondok wisata) a minimum of ten bedrooms is required. Accommodation with less than 10 bedrooms are granted residential IMBs.”
Wardana also revealed that from the 1,000 villas surveyed, less than 10% were actually owed by a Balinese. Foreigners using nominee Indonesian owners owned the rest.
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