A Russian citizen was found to be operating a construction materials factory in the Tahura Ngurah Rai mangrove forest area in Denpasar, Bali. The activity was uncovered during an unannounced inspection by the Special Committee on Spatial Planning, Licensing, and Regional Assets of the Bali Provincial Legislative Council (DPRD Bali) on Wednesday, 18 September 2025.
Chair of the committee, I Made Supartha, confirmed the discovery and noted that the facility was located on land registered under private certification. He expressed surprise that land within a conservation zone had come under the control of a foreign national.
“We were shocked. Then there are industrial activities there that are owned by Russians, foreign investment (PMA) in the form of those activities,” Supartha told detikBali, Thursday (18/9/2025).
Production for Hospitality Sector
According to Supartha, the factory specialized in producing building materials for use in hotels, villas, and restaurants across Bali. During the inspection, the committee observed that the manufactured goods had already been packaged and were ready for distribution to consumers.
“This may be an international business, they are one of the suppliers,” said Supartha.
The revelation has raised questions about how such industrial activities came to be established in a designated conservation area. The committee emphasized that industrial operations within mangrove forest zones are not aligned with the area’s intended conservation function.
Licensing Documents Not Produced
During the visit, DPRD members requested documentation from the factory’s management to verify whether the business held the necessary permits. However, the management was unable to present physical evidence of its licensing.
In response, the committee immediately ordered the closure of the facility. Supartha explained that the factory’s permits were deemed incomplete, making the continuation of operations unlawful until further clarification is provided.
Follow-up Actions by DPRD
DPRD Bali announced that it will summon the factory’s management to provide a full explanation regarding the legality of its operations and to clarify the process behind the foreign investment arrangements. The council also intends to review how foreign nationals may have acquired land certification in the protected area.
Supartha added that the committee would carry out a broader review of the mangrove conservation zone to identify the extent of industrial development that has occurred. He estimated that hundreds of hectares within the area may already have been used for non-conservation activities, which will require further investigation.
“If then the forest area becomes concrete buildings, then there is no water flow downstream because the mangroves have been fenced with concrete,” concluded the Chairman of the PDIP faction of the Bali DPRD.
