Land Politics in Bali

Bali Discovery Tours

Two stories were published today about that perenially popular topic, land ownership in Bali. The first post is from Bali Discovery Tours, which sends out a very information email newsletter about once weekly, and isn't afraid to step into this controversial issue. After that, it's a few thoughts from Nick in Seminyak, who recently married his girlfriend and will probably be looking to settle down for the long haul on the island.

Editorial: Stopping the Land Grab
Bali Post Editorial Sounds Warning to the Balinese to Start Controlling their Precious Land Resources.

(2/13/2005) The February 9, 2005, editorial in the Indonesian-language Bali Post published an urgent appeal to the people of Bali to take steps to preserve their quickly diminishing ancestral lands.

Outside Investors Controlling Bali's Land

Written under the headline "Stopping Outside Investors From Controlling Bali's Land Resources," the editorial laments that 85% of the estimated Rp.150 trillion (approximately US$1.63 billion) already invested in the Island's tourism industry is in the control of investors hailing from outside Bali. This leaves the remaining 15% in the hands of Balinese who, the editorial claims, receive an equally meager share of the tourism income pie.

Strongly suggesting that Bali has become something of a "waste bin" where substantial tourism transactions take place only to see profits quickly repatriated offshore, the editorial insists that the lack of Balinese representation in the control and ownership of tourism assets results in a number of negative lead-on effects, including denying the Balinese both a proper share of the benefits of tourism and meaningful senior manager job creation within that sector of the economy.

Echoing comments made recently at a number of high profile seminars in Bali, the Bali Post editorial maintains that the escalating growth in foreign exchange earnings produced each year by Bali's tourism industry is meaningless unless such advances result in real improvements in the welfare of the people of Bali.

The Land Grab

Year after year, the editorial goes on, valuable tracts of agricultrual land change hands in Bali only to be transformed into tourism projects, owned and controlled by non-Balinese.

The editorial admits that while many tourism operators make efforts to recruit local staff and pay government-mandated bonuses and wage benefits, the inevitable fact remains that the long term effects of these investments are taking a damaging toll on the Island's environment and traditional social structure, diminishing both the harmony and cultural integrity of Bali.

The editorial estimates that more than 1,000 hectare (more than 10 million square meters) of land disappears from the island's agricultural land bank each year in order to accommodate the voracious demand of hotel sites, strip malls, villas projects and other tourism projects – all largely owned and controlled by non-Balinese.

Bali Discovery Tours on Land Issues -- Read the Rest

Land issues becoming a talking point in Bali
BaliBlog
Nick

Buying land and building a house or a business is a dream for many people in Bali especially outsiders. The reality is that owning land and living a stress free life is harder than you think and the process is filled with pitfalls.

One of the problems westerners have is they cannot legally own land in Bali and have to put the land in the name of a local, which has its own risks. I have talked to many people who own apartments and guest houses about how they handle the situation. Here in Bali the expat scene is a bit like southern California where you get people from all over world moving to a desirable place to start a new life and do not want to leave, often being prepared to do things they would not do at home in order to stay.

Telling lies is part of the deal and I find that if I ask the same person the same question one week apart I often get a different answer. One week they own land, next week they lease land, one week they own a guesthouse, next week someone else owns it and they are the manager.

The British Consul told me there are examples galore of people trying to buy land in East Bali and getting taken for a ride, largely because there is no official record of land and its the Brooklyn Bridge scenario of someone selling you land and a while later the real owner wanting it back.

That does not mean it is impossible but that you have to exercise caution when slapping down hard cash. An older Balinese gentleman once told me the way it goes. A farmer sells land to a westerner, builds himself a house on his remaining land, buys and car, a couple of motorbikes and after 5 years the money is gone. Okay he thinks, now I want my land back. As a westerner who are you going to go to? You hold a piece of paper that has no record and the police are all local.

I know an American guy who owns a couple of blocks of apartments. He has a 20 year lease and after that is up he will lose the apartments. Maybe he does no care and if he manages to rent them out continously will get back much more than he put in, allowing him to live in Bali and make a profit.

Bali Blog on Land Issues