The recent suspension of construction activities at the Kura Kura Bali Special Economic Zone (SEZ) by the Bali Regional House of Representatives’ (DPRD) TRAP Special Committee has sparked controversy, with developers labeling the move a procedural violation. Legal representatives for PT Bali Turtle Island Development (BTID) argue that the council bypassed essential executive channels required to enforce such actions.
Anak Agung Ngurah Buana, a member of BTID’s legal and licensing team, asserted that the DPRD should have submitted its recommendations to the Bali Provincial Government rather than directly ordering a shutdown. According to Agung, it is the responsibility of the provincial government—specifically the executive branch—to execute such recommendations, a process he claims is mandated by Ministry of Home Affairs instructions.
Procedural Concerns and Regulatory Compliance
Agung highlighted that the committee failed to consult the leadership of the DPRD through a formal plenary session, which is the necessary precursor to engaging the Governor. “This was bypassed. The executive branch should have been the one to act, as required by the Ministry of Home Affairs’ regulations,” Agung stated on Friday, April 24. Furthermore, he noted that the recommendation was issued unilaterally without offering BTID an opportunity for clarification or confirmation.
Regarding the project’s land status, Agung defended the company’s compliance with existing laws, explaining that the development occupies production forest areas designated for conversion. He suggested that the TRAP Special Committee should have verified these findings with the Regional Forest Management Center (BPKH) Region VIII of the Ministry of Forestry before taking punitive action. He also pointed to Government Regulation No. 23 of 2023, which explicitly designates the Governor of Bali as the supervisor for SEZs in the region.
Investor Confidence and Future Implications
Yossy Sulistyorini, Head of Legal at BTID, expressed concern that the committee’s actions could have a detrimental impact on the island’s economic landscape. “The TRAP Special Committee often speaks about supporting investment in Bali, yet they have carried out a closure that lacks a proper legal basis,” Yossy noted. She warned that such unpredictable actions risk damaging Bali’s reputation and could deter potential investors, ultimately hindering the progress of the local economy.
Despite the current friction, BTID maintains that all necessary permits are in place and is currently reviewing its internal position before determining its next steps. While the TRAP Special Committee has recommended a temporary suspension of activities on substitute land in Jembrana and Karangasem, they have also requested that BTID coordinate with the Public Order Agency (Satpol PP) and prepare documentation for an upcoming hearing with the Bali DPRD.
Summary
The Bali Regional House of Representatives (DPRD) Special Committee recently ordered a temporary suspension of construction at the Kura Kura Bali Special Economic Zone, sparking controversy over procedural compliance. Legal representatives from PT Bali Turtle Island Development (BTID) argue that the council bypassed executive channels and failed to hold required plenary sessions before issuing the mandate. BTID maintains that they have complied with all necessary land regulations and permit requirements, asserting that the committee’s unilateral action lacks a proper legal basis.
Company officials have expressed significant concern that this move could harm investor confidence and negatively impact Bali’s economic climate. BTID is currently reviewing the situation to determine their next steps while emphasizing the importance of predictable regulatory enforcement for future investments. Despite the friction, the company maintains that all legal documentation is in order and awaits further coordination with local authorities regarding the committee’s demands.