Bali in the Balance: Indonesian Government to Halt Land Conversion of Bali’s Green Zones
Bali is famous worldwide as a lush paradise replete with rice fields and palm trees - but will it always be? In recent years, Bali and its residents have been grappling with an ever-growing challenge - how to balance both rapid development and booming tourist sector with the preservation of its nature. Its popularity as a tourist hotspot is hardly slowing down, and as such, the Indonesian government and key stakeholders are taking decisive actions to address the issue.
It is reported that 100 hectares of agricultural land in Denpasar City decreased in 2023 due to the massive conversion of land use.
The Changing Face of Bali
The south of Bali, in particular, has experienced an alarming rate of development, with areas that were once rural now being transformed to centers of commerce and activity. Whilst this has brought great economic benefits to locals and foreign investors alike, the costs to the environment have been significant. Areas which used to be primarily rice fields have become construction sites, hotels, F&B venues or villas. Of this group, hotels place a particularly large demand on the island’s water resources, accounting for up to 800 litres of water per room per day, as opposed to normal water usage of 200 litres. Such a vast number of hotels is putting immense strain on Bali’s ecosystem, from the decimation of nature and rice fields, air pollution, greater waste issues to depleting water reserves.
According to environmental organization Walhi Bali (Wahana Lingkungan Hidup Indonesia), the island is currently losing rice fields at a rate of 2,000 hectares per year. In Badung and Denpasar, the statistics show a staggering 23.44% decrease between 2000 and 2020. These statistics aren’t numbers on a page - they are evident for any person who stays on the island long enough to see its rapidly changing environment.
Land Conversion:
As a nation, Indonesia has huge agricultural potential, but population growth and the demand for non-agricultural land has led to the widespread conversion of farmland. This issue is particularly prominent in Bali, where the high prices for land stand in contrast with the low incomes of rice farmers. Swathes of land in Bali are designated as green zones, and are not meant to be built on. Areas given green zone status include forests, rivers, rice fields and other natural features, as a means of protecting the environment and negating the effects of overdevelopment. Generally speaking, the process of converting green zones to tourist zones is a controversial subject, as it has been known to occur without proper permits or in violation of existing regulations. While you may find land leases for sale in a green zone, that does not mean you are permitted to build on it. In fact, it is impossible to obtain a building license, called PBG/SLF (old name “IMB”), for structures constructed in a green zone.
The limestone cliff dredging project in the Uluwatu area has become the focus of widespread public attention.
Building a More Sustainable Future
In response to the developments of recent years, the Indonesian government has called for tighter controls over land conversion. The regions where their efforts will be focused are primarily those most heavily frequented by tourists - Denpasar, Badung, Gianyar and Tabanan.
This initiative has garnered support from key players in the tourism industry, including the Indonesian Tourism Industry Association (GIPI) and the Indonesian Hotel and Restaurant Association (PHRI). Alongside the calls for curbing land conversion, the government is preparing for a meeting to discuss future development in Bali. Importantly, local stakeholders will be included and the government has pledged to consider proposals from traditional leaders for every development project. This indicates a step towards more sustainable and culturally sensitive practices for Bali in the future.
Looking ahead, Bali will need to employ a number of strategies to create a more sustainable path forward. Ensuring the green spaces that the island is so well-known for are protected is key to both a balanced ecosystem and a long-term tourist driven economy. Similarly, implementing stricter regulations on water usage for larger resorts, and taking measures to preserve Bali’s traditional subak irrigation are areas up for discussion.
Implications for Businesses and Investors
These discussions signal some important shifts in the Bali business landscape and indicate that new projects, especially large scale ones in the tourism sector, may face more rigorous environmental regulations in future. On the other hand, we may see a greater demand for businesses that align with sustainable tourism practices, alongside water-efficient technologies and environmentally friendly building materials.
Based on data from the Indonesia Central Bureau of Statistics, the number of star-rated hotels in Bali increased by 7% compared to before the pandemic.
Whatever the outcome of these impending discussions, what we know for sure is that Bali stands at a crossroads; decisions made today will shape the future of the island. Whether Bali will maintain its status as a much-loved tourist destination is dependent on if it can preserve its natural and cultural heritage, and keep economic pressures from tipping the scale off balance.
Written by Team Bali Solve
