Bali halts new hotel and villa construction after deadly floods

The Bali provincial government has officially imposed a moratorium on the construction of hotels, villas, restaurants, and other commercial developments on productive farmland and areas designated for agriculture or rainwater absorption.

The move follows severe flooding that swept across large parts of the island, killing at least 18 people and causing extensive property damage. The floods inundated and destroyed homes, villas and shops across large swathes of the island.

Outside of the heavy rainfall, authorities and environmental groups and locals quickly pointed to two major culprits to the environmental tragedy: tourism over-development and trash. The second is indeed a consequence of the first.

Governor Wayan Koster said the moratorium is a “strategic step” to stop the rapid conversion of agricultural land into commercial properties, which experts say has worsened flooding and erosion.

“Starting from now on, in line with Bali’s 100th anniversary celebrations, there will be no further conversion of productive land for commercial purposes such as hotels and restaurants,” Koster announced on September 15. “I have instructed all Regents [Head of Districts] and Mayors to comply. Once flood management work is completed, we’ll reconvene to ensure that no new permits violate this policy.”

The announcement came after a joint meeting involving the Environment and Forestry Minister Hanif Faisol Nurofiq, the Regent of Badung, the Mayor of Denpasar, and members of the Bali Provincial Leadership Communication Forum. Meanwhile, existing construction on the island are not affected by the edicted ban.

Minister Hanif warned of the critical condition of the Ayung River Basin, which has retained only 1,500 hectares — about 3% — of forest cover out of a total 49,500 hectares. Environmental studies show at least 30% tree cover is needed to maintain ecosystem balance and prevent water runoff.

“The Ayung River Basin flows through Denpasar, Badung, Gianyar, and Tabanan. With only 3 percent forest cover left, its ability to absorb rainfall is dangerously low,” Hanif acknowledged.

Tourism infrastructure development destroys Bali’s natural protection

He added that Bali lost 459 hectares of forest in the past decade. While looking relatively small, the figure has outsized ecological impact. “Bali can’t afford to act carelessly. Its spatial planning must be reassessed; the island is already extremely vulnerable to hydro-meteorological disasters,” he cautioned.

Following the announcement, a joint team from the Environment and Forestry Ministry and local governments began reviewing Bali’s Strategic Environmental Assessment (KLHS) as part of a wider overhaul of spatial planning.

Governor Koster said the recent floods should serve as a wake-up call for all sectors to place environmental protection at the forefront of Bali’s development agenda.

“Rivers are the source of life,” he said. “We must safeguard Bali’s ecosystem for the generations to come.”

Bali is set for a new annual record for foreign visitors in 2025. Indonesia’s number 1 destination expects to accommodate over 6.5 million tourists. July saw even an absolute record with 697,107 foreign visitors.