Bali DPRD drafts investor contribution rule for local communities

Denpasar — — Bali’s provincial parliament is drafting an initiative regional regulation that would require investors and business operators to provide contributions to local communities in areas where they invest, including customary villages, administrative villages and subak irrigation institutions.

The concept was discussed in a meeting of the Regional Regulation Formation Agency (Bapemperda) at the Bali DPRD building in Denpasar on Monday, 31 August, according to local media reports quoting participants in the session.

According to reporting by Tribun Bali and Balipost, the planned regulation is intended to create a more harmonious investment climate while offering solutions to recurring disputes over spatial planning and permits. Lawmakers argue that investors benefit from using space that has already been regulated, and that local communities should receive structured benefits from those activities.

The initiative remains at an early stage and has not yet been enacted as provincial law. It is being prepared as a draft regional regulation (Ranperda) proposed by the DPRD, and details of the mechanism, coverage and enforcement have not been finalised.

Debate over contribution versus profit-sharing

Dewa Nyoman Rai, a member of Bapemperda who also serves as deputy chair of the special committee on spatial planning, permits and assets (TRAP), told reporters that the substance of the draft is still being debated and that lawmakers hold differing views.

“There was a difference of opinion. Some agree, some do not. This is still at the concept discussion stage,” Rai said after the meeting, as quoted by Balipost.

Rai suggested the regulation should emphasise a contribution framework rather than being framed purely as “profit-sharing”. He said the term “contribution” better reflects obligations on businesses to support the areas and communities where they operate, rather than only dividing business profits.

Media reports describe the proposed contributions as linked to investment locations and directed so that customary villages, administrative villages, subak organisations and other community elements receive tangible benefits from investment. However, the reports do not specify whether contributions would take the form of levies, negotiated payments, fixed shares of revenue or other arrangements, and no rates or sanctions have yet been agreed.

Linked to permit, spatial and environmental compliance

The discussion is closely connected to concerns over projects that proceed with construction while relying mainly on national registration documents. Rai was quoted as stressing that the Indonesian Business Identification Number (Nomor Induk Berusaha, NIB) is only a national registration and does not replace local spatial reviews, environmental approvals or permit processes.

He highlighted the need for investors to comply with confirmation of spatial-use conformity (PKKPR) and to complete required environmental studies such as environmental impact assessments (Amdal). According to Tribun Bali, some environmental assessments have not been adequately communicated to affected communities, including customary and administrative villages, prompting calls to strengthen participation and clarify responsibilities around investment.

Balipost reported that the contribution scheme is being explored as an alternative path for resolving disputes over developments that breach spatial planning rules, as long as cases remain within legal boundaries and do not remove investors’ obligations to meet permit requirements. The intention, according to the outlet, is to move beyond solutions focused purely on demolition towards structured local benefits and restorative arrangements, while maintaining the underlying regulatory framework.

Process still at an early legislative stage

The Ranperda was raised as an initiative of DPRD members during a Bapemperda meeting chaired by Ketut Tema Tenaya. As reported by Balipost, the discussion covered issues such as the name of the regulation, the form and mechanism of contributions, parties entitled to receive benefits and alignment with higher-level laws.

Rai and other legislators quoted in local media emphasised that these aspects remain open and will be refined in subsequent deliberations. There has been no public indication, in the reports reviewed, that the full DPRD has yet approved a final draft for plenary deliberation or that the provincial executive has concluded its review.

For now, investors and communities do not have a confirmed legal obligation under this proposed scheme. Any future regulation would still need to pass through the DPRD’s legislative process, be harmonised with national rules and be enacted by the provincial government before becoming binding on businesses.

Sources

• Tribun Bali
• Balipost