6 Regents In Bali Agree Not To Add Hotels As Long As They Get Tax Allotments

Bali Governor Wayan Koster conveyed the agreement of regents/mayors throughout Bali regarding infrastructure development and distribution of PHR, Denpasar, Monday 28/7/2025. (ANTARA/Ni Putu Putri Muliantari)

DENPASAR - Six regents in Bali Province agreed not to encourage the construction of hotels and restaurants in their area starting in 2026.

Bali Governor Wayan Koster said the six districts, namely Tabanan, Jembrana, Buleleng, Bangli, Karangasem, and Klungkung, made this agreement on condition that they still receive part of the Denpasar, Badung, and Gianyar (Sarbagia) hotel and restaurant tax (PHR).

"Yesterday's discussion with regents and mayors, so the six districts agreed that they would no longer encourage the construction of hotels and restaurants, as long as the PHR is divided more proportionally," said Koster, Monday, July 28.

"The six regencies are only built tourist destinations, while those that produce (Sarbagia) become hotel and restaurant businesses," he continued.

According to the Governor of Bali, the willingness of these six districts ultimately had a positive impact in order to suppress land exploitation.

The Bali Provincial Government itself ensures that the distribution of PHR Sarbagia will be evenly distributed even though there are recipient districts whose regents are not from the same political parties as the majority.

"This is divided not to look at politics, like Karangasem it is still being reported, I said the regent does not have to worry, my job is to build Bali evenly and fairly," said Koster.

As for the distribution of PHR, starting in 2026, 10 percent of PHR Sarbagia will be distributed directly to six districts for infrastructure development and infrastructure.

Some of the taxes are used for the construction and repair of provincial roads, while others are divided into districts through the BKK scheme.

"10 percent is approximately Rp700 billion, that's allocated for provincial roads, there is also for districts through the BKK with a size according to the area, then the population, and also the level of road damage," Koster said as quoted by ANTARA.

Koster said this was also the answer to the problem of the number of damaged roads and congestion in Bali recently.

With this cooperation between regencies/cities, the Bali Provincial Government believes that in 2026 infrastructure development will be faster because district/city fiscals are getting better.

"Only for infrastructure and infrastructure itself, it is not allowed for others, cars or other buying and selling are not allowed, only for productive ones," he said.