Indonesian government implements Bali development moratorium this month

The Indonesian government is gearing up to implement its Bali development moratorium some time this month.

This new legislation is meant to counter overtourism as it effectively bans the development of new hospitality centres and entertainment venues in the island destination. Once in place, the construction ban may last for up to five years.

As of press time, Indonesian tourism minister Sandiaga Uno has advised the public that the law will be implemented in the first half of October 2024. However, despite updates on the scheduled implementation, the government has yet to show a final draft for public scrutiny.

What exactly is this ban supposed to do?

According to government authorities, the Bali development moratorium is meant to control the rate of growth in some of Bali’s most popular areas. These are mostly resort zones to the south of the island, particularly in Canggu and Uluwatu.

Uno has advised urgency regarding the implementation of the moratorium, as it can reduce the amount of agricultural real estate transformed into commercial properties for the use of the tourism sector. Based on estimates, Bali loses approximately 2,000 hectares of prime rice-growing land per annum to commercialisation. This is on top of the conversion of non-rice paddy agricultural plots, coastal landscapes, and existing village common lands into tourism-ready commercial real estate.

In its own way, the moratorium may also aid the reduction of traffic congestion on the island which has grown significantly worse as travel reopened after the pandemic.