August 2007 - REVIEW ASIAelopment and the environment

Killing fields in Bali 


Marian Carroll looks into the island’s unabated building of resorts and villas, 
and the local community’s bid to halt the steady obliteration of its famed rice 
farms 



W hen Anak Agung Rai opened a resort and museum in Ubud a decade ago, he was so 
perturbed by the breakneck speed at which rice fields were vanishing that he 
bought four hectares of surrounding land and gave it back to farmers.
It was a wise insurance move. Rai’s Arma resort is one of the few remaining 
places where guests can watch farmers with buffalo and scythes work in the 
emerald terraces tripping down the valley. Alarmingly, the views for which Bali 
is famous are becoming a rarity.
“What people see inside the museum should be what they see outside,” says Rai, 
the son of a rice farmer who built his resort from scratch. “It is not just art 
by painting, but art by cultivation. These are living traditions that have been 
around since 300BC.”
These traditions are under threat as rampant development swallows up large 
swathes of Bali’s landscape, fuelled by foreigners wanting a holiday house cum 
residence who are willing to pay up to US$3 million off the plan.
The building frenzy has been most aggressive north of Kuta, turning ocean-front 
Seminyak and Canggu into upmarket expatriate enclaves. It has continued across 
south Bali all the way to Ubud in the mountainous interior and shows no signs 
of slowing.
Another hotelier, Gede Rai, knows it is only a matter of time before his rice 
field views disappear. The only reason they have survived this long is that the 
hotel he manages, the Bali Masari Villas & Spa, is obscurely located in 
Sukawati, well off the tourist trail. Occupancy is minimal, yet a Jakarta 
investor has bought the land opposite to build another hotel.



“We are ready for war. Everyone is willing to die for this. This is about 
standing up and knowing our rights and responsibilities. It is time for Bali to 
wake up.” 


Gross mismanagement
Gede Rai, a career hotelier of 40 years and former chairman of the Bali Tourism 
Development Corp, a government enterprise responsible for the Nusa Dua resort 
area, says this project is just one example of the provincial government’s 
gross mismanagement of tourism development.
“I’m not anti-development, but what I’m truly sad about is the lack of serious 
calculation between supply and demand. To me, Bali is far, far, far overbuilt,” 
he says.
“The decision-makers have given no reference to how many hotels, golf courses, 
restaurants and other tourism-related businesses Bali needs, and where, by 
when, and whether the natural resources can cope.”
He cited a 1980s World Bank report that recommended hotel rooms be capped at 
9,500 by 1993. There were already 23,000 by 1995, and today there are more than 
54,000 – not to mention thousands of villa rooms.
For tourists, the intense competition is good news. For the Balinese, the 
environmental upheaval and seismic shift in social and economic foundations are 
prompting calls for a ban on further rice field development.

Tourism riches
Thanks to tourism, Bali is one of Indonesia’s richest provinces. Even as the 
1997-1998 Asian financial crisis saw the country’s gross domestic product (GDP) 
shrink by 13%, tourism softened Bali’s fall at a comparatively moderate 4%. Per 
capita income is among the top 10 nationally, with better-educated and 
longer-living citizens than in many other provinces. Immigration is high as 
Indonesians from poorer islands come seeking work. 
However, economists warn Bali has become dangerously dependent on tourism 
revenue, which contributes 50% to 80% of its local GDP. Agriculture, once the 
economy’s primary engine, contributes just about 21%.
This imbalance was starkly evident after the 2002 and 2005 bombings that 
prompted mass cancellations by travelers. Thousands of Balinese lost their jobs 
and poverty levels rose sharply, with economic growth slowing to 3% in 2003 
from as high as 8% in preceding years.
Government figures show tourism numbers have since recovered, but the economy’s 
real savior in this dark period has been foreign investment – particularly in 
villa developments – which helped the island’s GDP growth recover to 5.2% last 
year.

Villa boom
While foreigners are technically not allowed to own land, developers have 
contrived complex legal structures to get around the laws. Money has poured in. 
Land values in Seminyak have risen fivefold over the past decade, with one are 
(100 square meters) leasing for about five million rupiah (about US$550) a year 
over a typical 50-year agreement. Many Balinese unable to afford the associated 
rise in land tax are divesting family plots.
The government is still unsure exactly how many foreign-funded villas there 
are, but it estimates well over 1,000 that do provide jobs and other economic 
benefits. The government expects new villa taxes to boost tourism tax revenue 
to 375 billion rupiah this year from 325 billion rupiah last year. 
Legislator I Made Arjaya said the government plans to release more “greenbelt” 
areas – wet farms banned from being developed – for residential housing in 
south Bali. The northern regencies will remain mostly agricultural and 
industrial zones. A losing battle
Despite acknowledging community opposition to further rice field diminution, 
Arjaya says it is a losing battle.
The government has provided grants, subsidies, tax breaks and modern equipment 
as incentives to farmers, but the proportion of agriculture workers has fallen 
to 40% of Bali’s labor force from 65% in 1970, while the average plot size has 
dropped to 20 are from 80 are, Arjaya says. These inefficiencies of scale mean 
most rice farmers can make much more by selling or leasing their land to a 
foreigner than toiling in it all day.
“We don’t have the financial strength or power to help the farmers,” says 
Arjaya. “They are better off selling their land and putting the money in the 
bank.”
Observers say this is a nice idea, but most Balinese have little concept of 
investment, says I Nyoman Erawan, dean of Udayana University’s postgraduate 
economics program and adviser to the Badung regency government that covers 
south Bali’s main tourist centers. The funds these farmers receive are usually 
gone in a flash, leaving them not only landless but also penniless.
“In the short term, selling their land enables them to put their children 
through school, pay for health care and buy themselves a motorcycle or even a 
car,” Erawan says. “But the growth is of poor quality because poverty and 
unemployment are rising while many Balinese are becoming servants, not masters, 
of their own land. We have no long-term vision. When the money runs out, then 
what will the Balinese do? Beg?”

Traditional backbone
Rice farming has traditionally been the backbone of Bali’s rich Hindu 
traditions and ecosystem. Under a centuries-old practice interlocking religious 
rituals with modern technical advancements, more than 1,200 associations known 
as subak oversee the democratic supply of water to each paddy field from the 
island’s four mountain lakes and its crisscrossing rivers. Headed by elected 
farmers, the subak form the many banjar (hamlets) of each village. 
Professor I Nyoman Darma Putra, co-author of the book Tourism, Development and 
Terrorism in Bali, says the reduction in agriculture threatens the social 
structure underpinning the island’s religious rituals, particularly the dance, 
music and arts that lure tourists. 
“The Balinese have been very strong in preserving traditional society as 
tourism has developed,” Putra says. “But as the rice fields diminish and the 
subak system weakens, this flows through to Balinese daily life. The very 
assets that attract tourists are under threat.”

Bane of urbanization
Environmentally, depletion of wet farms has affected the water table, and 
infrastructure has not kept pace with development, resulting in poor water 
quality, escalating pollution and horrendous traffic. 
Environmentalist Asana Viebeke Lengkong has been fighting ecologically damaging 
developments for years. Two years ago, she lost a battle against a shopping 
mall on Kuta beach because the community was too scared to defy the developer, 
one of Indonesia’s most powerful families with links to former president 
Suharto and the military.
The same developer has started reclaiming an estuary in Canggu for a hotel 
project. The so-called Loloan site, zoned as conservation and considered sacred 
to Balinese Hindus, was “given” to the developer 16 years ago by the former 
provincial government. This time, Lengkong says the government has gone too far 
and the surrounding villages are united in their protest.
“We are ready for war,” she says. “Everyone is willing to die for this. I’m 
serious. This is about standing up and knowing our rights and responsibilities. 
It is time for Bali to wake up.” 
Stakes are high. Lengkong claims she has received death threats and been 
branded a communist, but she refuses to back down. The government has been 
forced to ease tensions by halting construction, but Lengkong wants the 
developer’s building license revoked all together.
The dispute is shaping up as a landmark case in Bali’s broader fight against 
destructive developments and the official corruption that allows them to go 
ahead.
The government actually has very clear zoning and land use regulations, as well 
as architectural guidelines to ensure buildings adhere to traditional design 
principles. But Badung legislator I Wayan Puspa Negara acknowledges weak 
enforcement of these laws.
“Our rules and regulations are fantastic, but the application has been 
bombastic. Law enforcement means nothing here. People can pay authorities to 
look the other way. Loloan is just one case in the public eye, there are many 
others.”
Without strong law enforcement and government will to halt further rice field 
development, Bali’s preservation may depend on personal responsibility. One 
property developer is leading by example.



“Poverty and unemployment are rising while many Balinese are becoming servants, 
not masters, of their own land. When the money runs out, what will the Balinese 
do? Beg?” 


Personal responsibility
Nils Wetterlind is no saint. He admits this quite freely at Tropical Homes’ 
Bali headquarters, surrounded by sketches of multimillion-dollar villa 
developments he is promoting.
But some time last year, Wetterlind suffered an attack of conscience after 
involvement in yet another development of one of Seminyak’s last remaining 
pockets of rice-farming land. 
“It had nothing to do with altruism,” says the straight-talking Brit. “It was 
purely selfish. You see, I quite like Bali and I want Bali to still be around 
for my kids.
“I know I come across as sanctimonious, but I just want to be able to sleep at 
night. I want to make a living without destroying the Balinese way of life. We 
have to take personal responsibility, and if that makes me an ‘ageing hippy’, 
then so be it.”
In an edition of his property magazine, Wetterlind publicly vowed no further 
involvement in developing rice fields. His villas are now all on the Bukit, an 
arid expanse of cliffs stretching from Jimbaran to Uluwatu, and he is looking 
at uncultivable areas on the east coast, home to some of Bali’s poorest 
communities.
He also promised to use only ecologically sustainable materials and renewable 
energy wherever possible.
“We will ensure that the villas we build are both stunningly beautiful, 
practical to live in, light on the pocket and in harmony with this beautiful 
island and its people,” he wrote. “So this is our pledge to you … and to Bali. 
It’s time to grow up, and it’s time to do the right thing.” 
Such a bold statement has brought jeers from fellow developers, but Balinese 
community leaders endorse the idea of sustainable development.
No one is calling for a veto on development all together – tourism has given 
generations of Balinese valuable economic opportunities – but if it focuses on 
dry areas and the renovation of derelict sections of Kuta, it may just 
safeguard the ecosystem and culture for generations to come. In turn, that will 
ensure tourists keep coming back.
“If we don’t act now, I am afraid that by the time we Balinese wake up to the 
alarm bell, it will be too late,” says Gede Rai.

“I want to make a living without destroying 
the Balinese way of life. We have to take personal responsibility, and if that 
makes me an ‘ageing hippy’, then so be it.”
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