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The Need for Good Paperwork in Bali

Gianyar Bali Officials Post Closure Notice at Entrance to Ubud Hanging Garden Resort and Spa.

(3/12/2011) The Bali Post reports that the regional government of Gianyar and local enforcement officials have affixed a closure notice (segel) at the entrance to the Hanging Garden Luxury Resort & Spa located in Payangan, Ubud.

The notice, which could effectively close the 38-villa property in two months, was posted on Thursday, March 10, 2011.

The official displeasure and stern administrative steps which threaten to close the resort are linked to the luxury hotel's licensing and permit deficiencies. According to government officials, the luxury resorts operating permits are based on six separate permits for a "podok wisata" - a class of license intended by the government to be used by a guesthouse or a home-stay. Those permits have been allowed to expire one month ago. The notice posted at the entrance gives the hotel operators two months in which to put their paperwork in order and orders that no bookings be taken from guests beyond that period. A strict application of the rules would see the hotel closed completely if the licensing requirement is not somehow satisfied.

The general manager of the Ubud Hanging Garden, Nicolas Pillet, accompanied by the personnel manager, Bambang, pleaded with officials for another week before officials affixed the segel to the entrance. These pleadings were ignored by Gianyar officials who said the current permits for the property had already expired one month ago.

The head of the Gianyar enforcement agency (Satpol PP), Wayan Kujus Parwita, said, "the Satpol PP has given three warning, but the deadline given passed without the Ubud Hanging Garden able to show a permit extension from the Gianyar government."

The renewal of the expired "Pondok Wisata" licenses are said to be complicated by an internal management issue at the property where the six separate permits are registered in different names. Also, in many areas of Indonesia "Pondok Wisata" licenses are often reserved especially for accommodation providers offering a maximum of 5 rooms for rent to the public.

The luxury villas located on the banks of the Ayung river offer fine dining and a luxury spa with the property served by an inclinator carrying guests up and down the steep hillside. According to Radar Bali, the hotel pays more than Rp. 2 billion (US$222,000) in annual hotel and restaurant taxes.