Bali is taking significant steps to tackle overtourism and overdevelopment by proposing a temporary ban on the construction of new hotels, villas, nightclubs, and beach clubs in several key areas.
Acting Governor of Bali, Sang Made Mahendra Jaya, has submitted a proposal to Indonesia’s central government to implement a moratorium in four busy regions: Denpasar, Badung, Gianyar, and Tabanan – these four regions are also collectively known as Sarbagita. The moratorium addresses the island’s growing concerns around over-commercialisation and land development.
The proposed ban is part of a broader strategy to reform Bali’s tourism sector, ensuring that future developments promote higher-quality tourism, protect local culture, and prevent the unchecked conversion of agricultural land into commercial properties.
Jaya also expressed his shock over the lack of awareness by local officials.
“I was shocked as a [government] official. I just saw on TikTok that there was a cliff-cutting going viral. I didn’t know that existed. Suddenly there are big beach clubs in Tabanan and Denpasar [as well]. We didn’t know about those either. I was just dumbfounded,” remarked Jaya to the press on Saturday, the 7th of September.
Meanwhile, a senior official at the Coordinating Ministry of Maritime and Investment Affairs, Hermin Esti, confirmed that the Indonesian government has agreed in principle to the moratorium, though the exact timeline for its implementation is still under discussion. The ban could last one to two years, with some senior officials (such as the Indonesian Coordinating Minister for Maritime Affairs and Investment Minister, Luhut Binsar Pandjaitan) suggesting it could stretch up to 10 years.
Bali has experienced a significant surge in foreign arrivals since reopening after the COVID-19 pandemic. Around 200,000 foreigners now live on the island, contributing to overcrowding, crime, and competition for local jobs. The influx has also led to an increase in the conversion of rice fields into commercial land – a trend that local leaders want to halt.
Earlier this year, Bali introduced a tourist tax levy billed as Tourism Levy of Rp150,000 (around US$15), with local officials now pushing to raise the levy to approximately US$75 to attract more “quality” tourists.
“I think taxing Rp150,000 is too low [which makes] Bali seem like a cheap tourist destination,” a Balinese council leader, Kresna Budi, once made his remark about Tourism Levy during a council meeting back in June 2024. “Why should Bali be sold cheaply?”
Budi also proposed that a portion of the possibly increased tax should be used to establish a dedicated police force to deal with tourist-related issues.
“There is this problem because, usually, those who act up are members of the bottom layer,” he continued.
The moratorium, alongside the potential increase in tourism tax, is seen as part of a wider effort to manage Bali’s tourism sector more sustainably, ensuring that both the island’s environment and culture are preserved for future generations. Local officials remain hopeful that the ongoing discussions will result in formal regulations, likely in the form of a presidential instruction.
“We want to carry out the arrangement. Hopefully, after the coordination meeting, there will be a presidential instruction regarding a moratorium on the construction of hotels, villas, discos, and beach clubs, as well as land conversion in the Sarbagita area for one to two years,” Jaya concluded.