Closure of PARQ Ubud Highlights Tensions Over Development in Bali

Introduction of “Kampung Russia”

In what has been dubbed by locals as ‘Kampung Russia,’ a village of Russian nationals has taken root in the heart of Ubud, Bali’s picturesque inland rice terrace haven. The project, which began as a simple café and bar during the COVID-19 pandemic, rapidly expanded into a five-room hotel and later transformed into a grand 103-room hotel-residence and event space. However, this new development, referred to by its developers as a ‘city,’ has been shrouded in controversy and conflicts over land use and permits.

Rising Tensions and the Shut Down

After years of simmering tensions regarding potential permit violations, Balinese authorities have recently taken decisive action. Hundreds of local police were deployed this week to shut down the PARQ Ubud development for good. The temporary suspension of operations began in November, and when authorities moved in for a permanent closure, they encountered staff rather than any residents, leading to clashes between the workers and the police.

I Ketut Pasek Lanang Sadia, a representative from the Gianyar regency local government, stated, ‘The closure was carried out in accordance with the law and regional regulations…and has gone through several stages.’

The Expanded Offering of PARQ Ubud

Before its closure, PARQ Ubud touted itself as a multifunctional center designed for a variety of visitors—from young families to artists and entrepreneurs. The grand space included an array of amenities such as multiple restaurants, a luxury spa, event spaces, a fitness center, and an impressive 80-meter swimming pool, reportedly the largest in Ubud. The company described the sprawling 65,000-square-meter complex as a ‘synthesis of nature, creativity, and spiritual practices,’ complete with apartments adorned with chandeliers and a blend of European and Balinese aesthetics.

PARQ Development, the firm behind the project, sought to attract a diverse clientele through an aggressive marketing campaign promising investors a lifestyle brimming with leisure and the potential for passive income from rising property values. They claimed the development, along with seven others across Bali, would serve as magnets for celebrities, influencers, and international investors.

Local Responses and Concerns

Despite its marketing, the growing presence of PARQ Ubud raised eyebrows among many locals. The perception of an exclusive foreign enclave contrasted sharply with the reality of Balinese culture and lifestyle. Earlier this year, an immigration raid disclosed that a significant number of residents were not Russian citizens, dispelling some assumptions about the demographic composition of the development.

In recent months, the Gianyar local government began to scrutinize the permits for PARQ Ubud, particularly in light of what was reported as construction on protected rice fields. A local official noted that the project lacked essential licenses such as the PBG (building approval) and SLF (functionality certificate). Following the temporary halt in business operations, authorities identified that without the necessary permits, the land should be restored to its original condition.

Wider Implications for Bali

The closure of PARQ Ubud emerges amidst a broader narrative of rapid development in Bali, particularly in the wake of new long-stay visa options introduced by the Indonesian government, which attracted a considerable influx of expats looking to make Bali their second home. Local estimates suggest that nearly 1,000 hectares of farmland are lost to development each year. This comes alongside an increased presence of Russian visitors who, due to geopolitical circumstances, have come to view Bali as a welcoming destination.

Authorities are acutely aware of these pressing issues, with Bali’s Provincial Tourism Office head, Tjokorda Bagus Pemayun, stating, ‘This year is the year of how we enforce existing regulations. We are open to anyone, as long as they follow existing regulations.’

Conclusion

The closure of PARQ Ubud not only marks the end of a controversial development but also points to a pivotal moment for Bali as it grapples with the challenges posed by rapid growth and development pressures. As the island contemplates its future, ensuring sustainable practices while respecting its rich cultural heritage remains a primary concern for residents and authorities alike.