Neano Resort Lawyer Urges Government to Protect Investment Amid Bugbug Road Access Dispute

Pande Putu Maya Arsanti calls for legal certainty for PT Detiga Neano Resort Bali as the company reports obstacles to road access and the installation of water and electricity infrastructure in Karangasem.

DENPASAR, Bali — Legal counsel for PT Detiga Neano Resort Bali is urging the Indonesian government and relevant authorities to protect investment and ensure legal certainty amid an ongoing dispute over road access to the company’s project site in Bugbug Village, Karangasem, Bali.

Pande Putu Maya Arsanti, S.H., M.H., the company’s legal representative, said the reported access restrictions could disrupt business operations and cause financial losses. The company is asking authorities to establish the road’s legal status, clarify who has jurisdiction over its management, and determine the basis for any restrictions.

“Investment in Indonesia must be supported by legal certainty. When an investor has followed the required procedures, fulfilled its contractual obligations, and pursued the necessary business permits, the state must step in to provide legal protection. Access disputes should not be allowed to obstruct business activities and cause financial losses,” the legal team said in a statement issued Thursday, October 22, 2026.

According to the company, the road in question had previously been accessible and is also used as a route to Pura Gumang, a local Hindu temple. However, the road’s official classification and the circumstances surrounding the reported restrictions have yet to be independently established.

The dispute centers on a land lease agreement covering 20,000 square meters between Daniel Kriso and Desa Adat Bugbug, signed on December 30, 2021. Documents presented by the company identify the agreement as Lease Agreement Deed No. 38, executed before notary I Kadek Joni Wahyudi, S.H., M.Kn., with a 25-year lease term running through December 31, 2047.

In the company’s account, the transaction was conducted through I Nyoman Purwa Ngurah Arsana, S.T., who served as Kelian Desa Adat Bugbug at the time. The company says his authority to represent the customary village was based on a decision by the Bali Provincial Majelis Desa Adat and minutes of a traditional leadership meeting dated December 30, 2021.

Law Office: Bali Trust International Law Firm & Corporate Lawyers, Legal & Property Consultants Maya Arsanti, S.H., M.H. & Associates. Names from left to right: Ni Kadek Ayu Sri Undari, S.H., M.H., drg. A.A. Indira Paloma Prameswari, S.Kg., S.H., Pande Putu Maya Arsanti, S.H., M.H., Giovanka Melati Angeline Hutagalung, S.H., I Gusti Ngurah Surya Adhi Kencana Putra, S.H., M.H.

The company also says the lease payments were transferred directly to the Desa Adat Bugbug bank account. The leasehold rights were subsequently transferred from Daniel Kriso to PT Detiga Neano Resort Bali through Assignment of Leasehold Rights Deed No. 04, dated April 5, 2022.

According to documents cited by the company, Article 5, Paragraph (2), Subparagraph (b) of the lease agreement addresses access to the property and the installation of supporting infrastructure. The provisions reportedly cover drinking water connections, electricity, telephone lines, drilled wells, and other facilities required for business operations.

The company argues that the reported access restrictions and difficulties installing utilities should be resolved by examining the lease agreement alongside applicable laws and regulations.

Road access, water, and electricity are considered essential to developing and operating the property in accordance with the purpose of the lease. The company is therefore seeking intervention from local authorities and relevant agencies to facilitate a resolution.

Indonesia’s Law No. 22 of 2009 on Road Traffic and Transportation includes provisions prohibiting actions that damage roads or interfere with their function. Article 28, Paragraph (1), establishes the prohibition, while Article 274, Paragraph (1), provides criminal penalties for conduct that meets the relevant legal elements. However, whether these provisions apply to the Bugbug dispute would depend on the road’s legal status, the actions involved, the available evidence, and the findings of the competent authorities.

The company also claims that other accommodation businesses in the surrounding area continue to have road access. It has raised this comparison in calling for an objective and nondiscriminatory resolution. Nevertheless, any comparison would need to account for the legal status of each access route, the actual conditions on the ground, and the rights and obligations of the parties involved.

Business licensing is another issue requiring clarification. PT Detiga Neano Resort Bali says it is registered as a foreign investment company, known in Indonesia as a Penanaman Modal Asing (PMA), rather than a micro, small, or medium-sized enterprise.

The company claims to hold several documents related to its accommodation, restaurant, bar, and real estate activities. These reportedly include a Spatial Utilization Conformity Approval (Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang, or PKKPR), an Environmental Management and Monitoring Capability Statement (SPPL), standard certificates for relevant business activities, and self-declarations concerning business standards, safety, security, health, and environmental protection.

However, the completeness, validity, and applicability of these documents have not been independently verified. The company has also stated that its application for a Building Approval (Persetujuan Bangunan Gedung, or PBG) remains in process. Any outstanding building requirements must still be fulfilled in accordance with applicable regulations.

Indonesia’s risk-based business licensing framework is governed by Government Regulation No. 28 of 2025, which took effect on June 5, 2025, replacing Government Regulation No. 5 of 2021. The regulation addresses business licensing requirements, the Online Single Submission (OSS) system, regulatory oversight, and mechanisms for addressing obstacles to business operations. https://peraturan.bpk.go.id/Details/319773/pp-no-28-tahun-2025

A company’s PMA status does not exempt it from licensing obligations. Businesses must meet the requirements applicable to their activities, risk classifications, spatial planning compliance, and environmental obligations.

For PT Detiga Neano Resort Bali, the proposed development in Bugbug is expected to contribute to local economic activity and tourism. Realizing that potential, however, depends on compliance with regulations, resolution of the access dispute, and respect for community interests and environmental considerations.

The company is calling on local government officials and relevant authorities to examine the road’s legal status, review the lease documentation, and clarify the circumstances behind the reported access restrictions. If violations are established, the company wants the matter handled through the applicable legal process.

A resolution will require a fact-based assessment of the documents, the circumstances on the ground, and the rights of all parties. Legal certainty for investors remains important, but any protection must also respect the rights of the customary village, public interests, and the legal obligations of the business itself.

As of publication, the information concerning the lease agreement, business permits, and access difficulties is based on statements and documents described by the company. Responses from Desa Adat Bugbug, local government officials, and the relevant authorities are necessary to establish a fuller and balanced account of the dispute.

Editor – Ray

EDITORIAL NOTE – THE BEACON POST

THE BEACON POST upholds the principle of covering both sides in all its reporting. The editorial team welcomes clarifications, responses, and corrections from Bugbug Traditional Village, government authorities, and other relevant parties to ensure accuracy, balance, and objectivity in accordance with the Journalistic Code of Ethics.

The Beacon Post Editorial Team