Bingin Demolition: Skipping Legal Steps Could Cost You Everything

What Bingin Demolition at Bingin Beach Taught Us About Business Risk in Bali

On July 21, 2025, the Bali government began to demolish nearly 50 illegal structures along the cliffs of Bingin Beach, from long-standing cafes and homestays to modern villas and beach clubs. The reason was that they had no permits, in violation of zoning laws, and for encroachment on state land.

To some, the move felt sudden and brutal. But from a legal standpoint, it had been a long time coming. And if you’re considering starting or expanding a business in Bali, what happened in Bingin is not just news. It’s a warning about the risks of ignoring legal compliance.

Legal Compliance Is No Longer Optional for Bingin Demolition

At Vidhi Law Office, we’ve worked with numerous clients who came to us after problems emerged: buildings sealed, licenses denied, businesses shut down. More often than not, the root issue was the same: they didn’t prioritize legal compliance from the start, similar to those affected by the Bingin demolition.

Some relied on verbal agreements, assumed they could “figure it out later,” or believed that having local community support would be enough. But the reality is clear: if your business stands on illegal ground, literally or legally, it can be taken down at any moment. Others relied on the fact that their Notary had not advised them of the violation. It is important to note that Notaries did not give legal advice when doing property sales.

Due Diligence: The First Step Most People Skip Before Bingin Demolition

Before you buy land, lease a villa, open a café, or start any commercial activity in Bali, due diligence is essential. It protects your investment, your time, and the people who work for you.

This includes:

• Verifying land status

• Zone checking

• Building permits

• Business license

• Environmental compliance

• Legal agreements

Without this foundation, your business may operate, but not securely. And when enforcement finally comes, as seen with the Bingin demolition, there is very little legal protection left.

A Legal Business Is a Protected Business Against Bingin Demolition

There’s a common misconception that getting the right permits is just a bureaucratic hassle. But the truth is, permits are what make your business legitimate. They are what allow you to:

• Insure your property

• Sell or transfer your business later

• Resolve disputes legally

• Access banking or investor capital

• Comply with labor and tax obligations,

And more importantly, they help you sleep at night, knowing your hard work won’t be wiped out overnight by a letter of enforcement, as happened in the Bingin demolition.

Bingin Demolition Wasn’t the First. It Won’t Be the Last.

The Bali governor has stated that enforcement is only going to intensify. If your business operates in a coastal area, or if you’re unsure whether your permits are complete, now is the time to take a closer look. Hoping for flexibility is no longer a strategy.

We Help You Get It Right Before Bingin Demolition Goes Wrong

At Vidhi Law Office, we assist clients with:

• Legal due diligence before buying or leasing land

• Full permit assistance

• Structuring investment models

• Drafting contracts that protect your interests

• Handling disputes and responding to enforcement notices

Our experienced experts understand the legal system in Bali, including the intersection between national law and Adat (customary law). We also understand how unclear the process can feel, especially if you're new to doing business in Indonesia. Our job is to bring clarity and to protect your business before trouble starts.

If there’s one lesson from the Bingin demolition, it's that you can’t afford to wait until enforcement knocks on your door. The rules are no longer flexible, and the risks are real.

A strong legal foundation isn’t just smart, it’s essential. If you're unsure about your permits, your land status, or your structure, speak to a legal team that knows the terrain.

Contact us for a consultation to help you build something that lasts, and avoid the pitfalls seen in the Bingin demolition.