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Obstacles Delaying Bali International Park

Chairman of GIPI Questions Need for Massive Bali International Park Project. Meanwhile, Regent of Badung Says Paperwork for Project Remains Remains Incomplete.

(7/22/2011) The chairman of the Bali chapter of the Indonesian Association on Tourism (GIPI), Ida Bagus Ngurah Widjaya, told Bisnis Bali on Tuesday, July 19, 2011, the Bali International Park (PIP), comprising a major hotel, villas and conference facility is not, in fact, a pressing requirement for the island’s tourism indusrty.

The project, backed by PT Jimbaran Hijau, has been the source of much debate with those opposed to the project saying it trespasses a gubernatorial moratorium on new hotel development in Bali and ignores information suggesting that Bali's inventory of hotel rooms is oversupplied.

Wijaya questioned whether the development of the  BIP was sufficiently justified on the basis of  Bali’s plans to host the large APEC 2013 Conference, saying the exact number of guests expected to attend that event remains unclear. Pointing to the large amount of conference and accommodation facilities available at the nearby Bali’s Nusa Dua Complex, he thinks it unlikely that the APEC 2013 Conference will exceed in size the World Climate Change Conference held in Bali in December 2007.

He also suggested that not all delegates at major conference demand or require five-star accommodation and that Bali has sufficient rooms, if hotel room supply is viewed on the aggregate.

Given the governor’s introduction of a new hotel moratorium, Wijaya said plans to build the BIP should be reviewed and reconsidered.

Ministerial Support for BIP

Meanwhile, Bali Post reports that Indonesia’s Minister of Culture and Tourism, Jero Wacik, has written to the Regent of Badung asking that the permits and licenses for the BIP be fast tracked.

The Minister’s letter formed the subject of a meeting held on Tuesday, July 19, 2011, between the regional government of Badung and the National Land Agency.

The Minister’s letter dated July 15, 2011, explained that the assets of the project’s developer have been formally transferred form PT Citratama Selaras (CTS) to PT Jimbaran Hijau, removing a legal technicality that has often been cited in the past as the reason for delaying the approval process for the project.

Badung Regency Standing Firm

The regent of Badung, A.A. Gde Agung, has reacted to the Minister’s letter saying he remains steadfast in his original position that the project can only proceed when the transfer of assets is perfectly completed in accordance with the law. According to Agung, this includes the presentation of an authenticated copy of the Land Use Certificate (HGB), adding “this authenticated proof has not yet been presented.”

Commenting further, Agung explained that while PT CTS and PT Jimbaran Hijau operate “under a single flag”, the need to present an authenticated HGB cannot be ignored. While the is a notarial act finalizing the sale of the land from PT CTS to PT Jimbaran Hijau and that document has been given to the regent's office, a notarial act cannot form the documentary basis for the permits being sought by the developer.

“What's clear, in this regard we continue to hold firm to the rules,” explained Agung.