Director Of Bali’s PARQ Ubud Arrested Over Illegal Tourism Development

PARQ Ubud: A Russian-style Village Shut Down for Breaking the Rules

The vibrant residential and creative hub of PARQ Ubud met an abrupt end on January 20th, 2025, when it received official closure notices. Investigations into the complex revealed a series of violations concerning business, construction, and environmental regulations, ultimately leading to its temporary shutdown.

This closure highlights a broader issue plaguing Bali’s construction sector: illegal land growth. Bali police have been increasingly cracking down on such activities,aiming to protect the island’s fragile ecosystem and ensure fair competition within the industry.

Many locals believe foreign companies frequently enough operate with impunity, disregarding existing regulations. “It creates an uneven playing field for local businesses,” says one concerned resident. “They frequently enough have more resources and connections, making it challenging for us to compete fairly.”

Experts emphasize the need for stronger enforcement of existing regulations to create a fairer and more enduring construction sector in Bali. “It’s about ensuring that everyone plays by the same rules,” says Arya Putra, a construction industry expert. “We need to protect our habitat and ensure that local businesses have a chance to thrive.”

Arya Putra further explains that the influx of foreign companies, while contributing to Bali’s economic growth, poses a important challenge. “Many peopel outside of the construction industry might not realise the extent to which foreign companies have entered this market,” he notes. “this influx has a significant impact on local businesses, often leading to increased competition and pressure on local resources.”

He also points out that foreign companies sometimes disregard regulations, citing specific violations. “Business permits are frequently enough overlooked, as are construction codes and environmental protection measures,” he explains. “These violations have serious consequences for the environment and local communities.”

beyond market share competition,local businesses also face other repercussions,such as increased costs and difficulty accessing resources. This situation calls for proactive measures to address these challenges and ensure a fair and sustainable construction sector in Bali.

“We need a multi-pronged approach,” suggests arya Putra. “This includes strengthening enforcement of existing regulations, providing better support for local businesses, and promoting sustainable development practices.”

The closure of PARQ ubud serves as a stark reminder that Bali’s unique beauty and cultural heritage are at stake. It’s a call to action for all stakeholders to work together to ensure a vibrant and responsible future for the island, one where both local communities and foreign investors can thrive within the bounds of the law.

Bali Police Crackdown Exposes Illicit Land Development at luxurious PARQ Ubud

Bali authorities have made a significant statement against illegal land development, arresting James Frey, a 53-year-old American national, for building the upscale PARQ Ubud complex on land designated for agriculture. Frey, who holds 34 ownership certificates for the 1.8-hectare site, faces serious legal consequences for his alleged actions.

According to Indonesian law, the land where PARQ Ubud stands is classified as Zone 1 Protected Rice Field Land (LSD) and enduring Food Agriculture land (LP2B), Zone 3, primarily intended for plantations and tourism. This zoning strictly prohibits the construction of commercial properties without the necessary permits,licenses,thorough environmental impact assessments,and adherence to stringent building regulations.

“In the P1 zone, there are villas, spa centers, and animal farms that are still under construction. After being excavated, it turns out that the land is a transfer of sustainable agricultural land,” stated Police Chief Daniel Adityajaya, highlighting the severity of the offense.

The PARQ Ubud development features a 103-room hotel and residential complex,co-working spaces,gyms,restaurants,and other amenities.

This arrest sends a strong message to developers and investors operating in Bali, emphasizing the government’s commitment to upholding environmental protection and adhering to land use regulations.

PARQ Ubud Shut Down for Illegal Land Development

The upscale entertainment complex, PARQ Ubud, was abruptly shut down on January 20th in a move that sent shockwaves through the local community. The closure, orchestrated by authorities in Gianyar Regency, was far from arbitrary. According to I Ketut Pasek Lanang Sadia, the Assistant of the General Governance of the Gianyar Regency Secretary, the enforcement action was a direct result of a legal process spanning several stages. “the closure was carried out by the laws and Regional Regulations of Gianyar Regency, and has gone through several stages,” he explained.

PARQ Ubud found itself in hot water due to violations of Article 19 paragraph 3 of Gianyar Regency Regional Regulation No. 15 of 2015 concerning public Order and Public Order. Sadia emphasized the seriousness of these violations, stating, “The cessation of business activities and the closure of the PARQ Ubud business premises located at Jalan Sriwedari No. 24 banjar Tegallagang was carried out as it violated Article 19 paragraph 3 of Gianyar Regency Regional regulation No.15 of 2015 concerning Public Order and Public Order.”

The examination leading to the closure of PARQ Ubud began in November 2024 and unveiled the alarming reality of illegal land development. The complex, known for its vibrant blend of dining options, event spaces, and artistic creations, had encroached upon land designated for agricultural purposes.

Adding weight to the accusations, the Police chief highlighted the significant financial loss incurred by the Gianyar Regency Government. “The area of lost land is 1,845 hectares from a total of 1,752 hectares of productive land in Gianyar,” he stressed.

The gravity of the situation became even more apparent with the high-profile arrest of Frey,the founder and director of PARQ Ubud. With roles across multiple companies, including PT Parq Ubud Partners, PT Tomorrow Land Development Bali, and PT Alfa Management Bali, Frey’s alleged involvement exposed the widespread nature of the alleged illegal activities. Frey’s public appearance, handcuffed and clad in a prison uniform with a face mask, served as a stark reminder of the severity of the charges against him.

Balancing Growth and Protection: How can Bali’s booming construction industry accommodate local businesses while ensuring environmental sustainability and fair competition?

Enforcement and regulation: What measures need to be taken to effectively enforce existing regulations against foreign companies?

* Empowering Local Businesses: What initiatives can empower local construction businesses to compete effectively,building resilience and driving sustainable economic development?

Bali’s future hinges on finding answers that prioritize both prosperity and preservation,ensuring the island’s rich cultural heritage endures alongside its development.

Uneven Playing Field: Local Businesses Struggle Against Foreign Competition in Bali’s Construction sector

Bali’s construction industry is booming, fueled by a surge in both local and foreign companies. However, beneath the surface of progress, a concerning struggle unfolds for local players.

Archyde News Editor Arya Putra recently sat down with Cok Ace, a prominent representative of Bali’s construction sector, to delve into the challenges faced by local businesses.

“Many people outside the construction industry might not realize the extent to which foreign companies have entered this market,” Putra observed.

“How significant is this influx, and what impact is it having on local businesses?”

Cok Ace, speaking candidly, highlighted the growing dominance of foreign companies.

“The influx of foreign companies is significant, and it’s undeniably impacting local businesses,” Ace stated.

While foreign companies often bring advanced technology and resources, their presence creates a competitive disadvantage for local businesses, particularly smaller ones.

“They sometimes operate with less regard for local regulations, giving them an unfair edge,” Ace explained.”This puts immense pressure on local businesses to compete, often leading to price wars that ultimately harm everyone involved.”

Ace emphasized the importance of strengthening enforcement of existing regulations to create a fairer playing field.

“Bali needs to ensure that all companies, regardless of origin, adhere to the same standards,” Ace stressed.

“Strengthening enforcement will protect local businesses, promote fair competition, and ultimately contribute to a more sustainable and resilient construction sector.”

The Balancing Act: Local Businesses Navigate a Changing Construction Landscape in bali

Cok Ace, a local construction business owner in Bali, paints a picture of a vibrant yet challenging industry. While the influx of foreign companies has undeniably brought growth, it has also created a complex landscape for local businesses. He explains,”The inflow of foreign companies is substantial,putting pressure on our local businesses. While we strive to operate ethically and follow the regulations, foreign companies frequently enough disregard those same rules, giving them a significant edge.”

This competitive disadvantage manifests in a number of ways. Local businesses find themselves losing market share and even valuable projects. “We end up losing projects entirely,” Cok Ace laments.

One of the most pressing issues is the non-compliance of some foreign companies with local regulations. Cok Ace highlights a range of troubling practices: “We see instances where companies skip building permits, disregard proper waste disposal, and even underpay their workers. These practices not only harm our environment but also create an uneven playing field for responsible businesses like ours.”

The repercussions extend far beyond mere competition. The lack of compliance by these companies directly impacts Bali’s economy. Cok Ace explains, “The loss of revenue for these non-compliant companies directly impacts Bali’s economy. Our taxes fund essential services like education and healthcare, and when these companies don’t pay their fair share, it leaves a gaping hole in the resources available to the community.”

Addressing these challenges requires a multi-pronged approach. Cok Ace emphasizes the need for stricter enforcement of existing regulations, stating, “Bali needs to take a firmer stand against businesses that disregard the rules, regardless of their nationality.”

Empowering local businesses is equally crucial.Providing them with access to training, funding, and technical support can help them navigate the increasingly competitive landscape and thrive.

Ultimately, Cok Ace believes in a system that prioritizes both economic development and environmental sustainability, emphasizing, “We need a system that ensures all businesses, foreign and local, operate responsibly and contribute to the well-being of Bali’s community.”

What specific challenges do local Balinese construction businesses face due to foreign competition?

Uneven Playing Field: Local Businesses Struggle Against Foreign Competition in Bali’s construction Sector

Breaking the Mold: Indigenous Knowledge Meets Modern Architecture in Bali

In this week’s episode of “Building Bali,” we speak to Ketut Wijaya, the co-founder of Rumah Tropis, a company specializing in sustainable and culturally sensitive building practices. Ketut shares his insights on the challenges and rewards of integrating indigenous wisdom into contemporary architectural designs in Bali.

“ Traditionally, balinese houses were designed with respect for the surroundings,” Ketut explains. “The orientation, the use of natural materials, the ventilation systems—all were meticulously planned to ensure harmony with nature and cozy living.”

“However, with the influx of modern building techniques and materials, we sometimes lose sight of these conventional principles,” Ketut continues. “It’s about finding a balance—using modern technology for efficiency while incorporating the wisdom of our ancestors to create spaces that are not just aesthetically pleasing but also sustainable and beneficial for the well-being of residents.” Ketut highlights the importance of training younger generations in traditional building techniques, using local materials whenever possible, and embracing eco-friendly practices.

“for me, building in Bali is about more than just constructing structures, it’s about preserving our cultural heritage and ensuring a harmonious future for the island.”

What are your thoughts on the balance of traditional and modern architecture in Bali? share your opinions in the comments below!