Bali News

Revision of contract on land used by BTDC as demanded by Bali Governor less likely to get implemented. BTDC has just confirmed that contract value has been defined in the initial contract with the investor for the whole period ending on 2025. The Director of BTDC, Made Mandra, explained that lease contract between BTDC and the investors of the golf course will remain in force untill 2025.

BTDC is the managing company of the exclusive enclave for five star hotel and resort developments in Nusadua, on the southern peninsula of Bali, where the famous Bali Golf and Contry Club is located. At the moment the area is home to luxurious brands of hotels, resorts, and villas, such as the Grand Hyatt, The Westin, Sheraton, and many more.

The contract defined that lease price for the 40 hectares plot occupied by the golf course is 700 million rupiah per year. He furthermore explained that the amount has been agreed between BTDC and the investors in advance. “So far I remember, the agreement was made back in 1995″, he said.

With regard to the Governor’s opinion that ideal price for the lease should be 4 billion rupiah per year, Mandra thinks that it has to be reconsidered. Mandra believes that the current lease is rather reasonable as the land is used for supporting facility. “The initial price is rather ideal. It will be different if the land is used for hotel development, in which 4 billion rupiah will be the right price”, he said.

Mandra believes that intention to revise the contract will be difficult to be implemented, as the contract period will only come to its end in 2025. However Mandra promised to arrange a dialog between the investors and the provincial government to discuss the issue.

As previously reported by medias, contribution of BTDC to the provincial government is considered too low compared to the value of asset controlled by BTDC. Bali Governor, Made Mangku Pastika has once expressed his opinion that the lease price is significantly lower than the market price, and therefore contracts have to be revised.