On January 20th, 2025, the vibrant PARQ Ubud, a hub of creativity and residence, officially shut its doors after receiving temporary closure notices back in November 2024.
What Led to the Closure of PARQ Ubud?
After extensive investigations, local authorities have stepped in to shut down PARQ Ubud for violating numerous business, construction, and environmental regulations. The founder and director, Andrej Frey, found himself in legal trouble when he was arrested on January 24, 2025, for what officials termed the ‘illegal transfer of land functions.’
The Face Behind PARQ: Andrej Frey
Andrej Frey, originally from Germany, has been a pivotal figure behind PARQ Developments. Over the years, PARQ Ubud became a known landmark in the area, often referred to as the ‘Russian Village’ due to the significant number of Russian nationals who chose to invest and reside there. It’s not uncommon to find yourself enjoying a delicious Russian dish at a local eatery while surrounded by others sharing stories of their experiences.
The Unfolding Drama: Land Ownership and Legal Violations
At a press conference, Bali Police Chief Daniel Adityajaya confirmed Frey’s ownership of 34 property certificates for the 1.8 hectares making up the PARQ Ubud site. Here’s the twist: Under Indonesian law, this area is classified as protected agricultural land, which greatly limits development possibilities. The fact that it’s designated as both Zone 1 Protected Rice Field Land and a tourism zone means that constructing commercial properties without the right permits is a significant no-no.
Impact on the Community and Local Environment
The closure isn’t just a legal matter; it impacts the local community. When Chef Wayan, whose small restaurant is adjacent to PARQ Ubud, shares anecdotes about the lively crowd that used to flock to his venue, you can sense the collective sigh among business owners reliant on that foot traffic. The closing of PARQ Ubud raises concerns about what’s at stake not just for investors but for the fabric of Bali’s community.
What’s Next for PARQ Ubud?
The future of PARQ Ubud remains uncertain. The Gianyar Regency Government has emphasized that the closure aligns with existing regulations, reaffirming the need for compliance. Officials indicated that this might just be the start, with discussions underway about other foreign-owned developments that may face similar scrutiny.
Community Voices and Concerns
Cok Ace, the former Deputy Governor of Bali, expressed concerns over foreign companies operating outside regulations. “We strive for orderliness here,” he remarked. “When foreign businesses flout the rules, it undermines local competition and our market.” This sentiment resonates deeply with local entrepreneurs who seek fair competition.
Final Thoughts
This episode serves as a wake-up call for both investors and developers in Bali. With increasing scrutiny on developments, especially those flaunting regulations, understanding and adhering to local laws is now more crucial than ever. As the community reflects on this unfolding situation, it’s imperative to protect Bali’s unique environment and cultural landscape while promoting fair business practices.
