- by Ai Samaytuha Maryam
- 25 August 2026
A green zone building fine in Bali has come under the spotlight after a half-finished building on Jalan Suradipa, North Denpasar, continued to be constructed despite being declared in violation of the area’s designated land use. Instead of stopping, construction reportedly remains ongoing. The government is now preparing sanctions that could reach IDR 50 million every year.
The case is raising eyebrows. The building owner had already received official warnings from the government, yet construction was reportedly still underway. If the situation continues, the issue goes far beyond the building itself. It also involves compliance with spatial planning regulations in Denpasar.
The unfinished building on Jalan Suradipa, North Denpasar, has been identified as being located in an area that is not designated for such development.
Gandhi Dananjaya Suarka, Head of Spatial Planning at the Denpasar City Public Works and Spatial Planning Agency (PUPR), said the building owner had already received the first and second warning letters, known as SP 1 and SP 2.
Despite the warnings, construction was reportedly still continuing.
This has prompted the government to consider taking firmer action. A warning letter should serve as a clear signal for construction activities to stop and for the owner to restore the land to its legally designated function.
One of the consequences now facing the building owner is a progressive fine. The penalty could reach IDR 50 million every year for as long as the spatial planning violation remains unresolved.
This is not simply a number on paper. The government is using the progressive fine as a means of pushing property owners to address violations and restore the land according to its designated use.
Gandhi explained that the progressive fine would only stop once the owner restores the area to its proper function or voluntarily demolishes the building standing on the site.
In other words, the longer the violation continues, the greater the consequences could become.
This is where things often get misunderstood.
The imposition of a fine does not mean the owner is being given a kind of “ticket” to keep the building standing in a green zone. Paying the fine does not automatically make the building legal.
The government still requires the land to be restored according to its designated function. In other words, the fine is part of regulatory enforcement, not a fee for purchasing permission to continue construction.
If the owner continues to ignore the warnings, enforcement could proceed to SP 3, followed by the sealing of the building.
Once all warning procedures have been completed, the Denpasar City Government can proceed with issuing an official decision imposing the applicable fine.
If the owner still shows no intention of voluntarily demolishing the building and restoring the land, the government may proceed with forced demolition in accordance with applicable regulations.
So, what may initially look like a simple construction dispute can turn into a much bigger problem when land-use regulations are ignored from the very beginning.
The green zone building fine case in Bali is also a reminder that property development requires more than simply having land and enough capital.
Before building a house, villa, commercial property, or any other type of development, you need to understand the land’s legal status and designated use.
A piece of land may look incredibly strategic, but that does not necessarily mean you can develop it however you want. Discovering land-use restrictions only after construction has begun can result in massive losses.
Construction costs may already have piled up, while the property suddenly faces administrative and spatial planning issues.
This is where you need to be extra careful. Several important things should be checked before construction begins.
1. Check the Land Use Designation
Make sure the land you plan to purchase or develop is compatible with the applicable spatial planning regulations and your intended property project.
2. Review All Documents and Permits
Do not rely solely on information provided by the seller. Land documents, business permits, building permits, and other required approvals should be carefully reviewed before moving forward.
3. Make Sure the Development Plan Complies with Regulations
Even the most stunning property design still has to comply with local regulations. A beautiful concept means little if the development itself violates the rules.
4. Work With a Professional
If you are not familiar with land matters, permits, construction, or property management, working with a professional can help reduce the risk of costly mistakes from the outset.
The Denpasar case highlights one simple reality: property investment is not just about finding a great location.
There are numerous steps to consider before a building can actually take shape. From finding the right land and checking its designated use to securing permits, managing construction, and ensuring the property can legally be used for its intended purpose.
In Bali, professional assistance has become increasingly important as the property and investment sectors continue to expand across the island.
Pandara Prima is a Bali-based company specializing in Business Management and Investment Services. The company supports both domestic and international investors with end-to-end solutions, helping ensure that every stage of the investment journey runs smoothly—from concept and planning to development and completion.
Its services include property agency, general contracting, building permits, business permits, villa management, and more.
Pandara Prima’s coverage extends across Denpasar, Badung, Tabanan, Gianyar, Klungkung, and Buleleng.
The building case on Jalan Suradipa offers an important lesson: spatial planning regulations should never be taken lightly. A green zone building fine in Bali can become a serious financial and legal consequence when a development does not comply with the designated land use.
Instead of scrambling for solutions after construction has already begun, it is far safer to review everything from the start.
Pandara Prima helps make the property investment journey easier, safer, and more transparent—from finding land and handling documentation to construction and property management, all under one roof.
For more information about property investment services and professional assistance in Bali, visit the Pandara Prima blog at https://blog.pandaraprima.com/.
