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According to Ketut Tama Tenaya, Head of Commission I (in charge of policy making) of Bali’s House of Representatives, the plan to build a 3000-room condotel in Nusa Dua by investors from China violates the Bali Governor moratorium mandate.

He remarked that the investors found a way to obtain the special permit by falsely stating that they’re building a 5-star, American-branded MGM Hotel, while in reality it’s a 3-star hotel run by a local operator with the name PT. Metropolitan Golden Management.

“This deceived the government. They said it was a special permit—what kind of special permit? The plan threatens to violate a sacred area, the regional law on zonation, as well as the exclusivity of the Nusa Dua area,” said Tenaya, as quoted by Nusa Bali. “If the condotel was built, the exclusive status of Nusa Dua would be diminished. We have asked for Badung district government to coordinate with the Bali government, before it’s too late.”

He added that Bali’s House of Representatives has an immunity right which allows them to investigate matters that fall into their job function. That’s why he will call all parties to discuss the plan to build the condotel.

“The proposed hotel will encroach on a sacred temple area [Pura Geger], and public space. Imagine if there were 3000 rooms, then there will be 6000 people going through the area. Not to mention I received information that the road will take up Jalan Pura Geger. For that they would have to deal with the Regional Zonation Law.”

As a comparison, Grand Hyatt with 14 hectares only has a permit to build 700 rooms, while Hotel Mulia with 25 hectares only has 800 rooms. “The aim was to build a cluster in Nusa Dua so we can create a good quality tourism area. Not a discounted one. With 3000 rooms, the price range will go down, which will impact starred hotels.”

In the meantime, Adhi Ardana, member of Commission II (in charge of tourism), remarked that they will look further into the matter, and said if they did get a permit then they would have to consider the effect that it has over their surroundings. “I just received the news, and I don’t know if they have a permit or not,” said Ardana.

He noted that the development violates the moratorium on hotels in South Bali region (Badung and Denpasar) as issued by the Bali Governor. “Don’t think the tax on hotel and restaurant will be increased—in fact it might be lowered because the type of rooms they’re offering is a condotel. The price can knock down the others because of the competition. We will ensure that there is a permit.”

The Badung district administration claimed that they knew nothing regarding the plan, and they will check with the License and Investing Agency, but according to Bali Post, the Bali government has never issued a building permit for the condotel because that falls under the authority of Badung district.

“If Badung claimed that they don’t know, well… it’s impossible. The district government is the one who can issue the building permit—no one can build anything without it. There is a possibility that they haven’t got one, but if that’s the case, then why they were able to start developing?” asked Ida Bagus Parwata, Head of the Investment and Integrated Service of Bali region.