In Ubud, Bali's tranquil inland rice paddy paradise, locals refer to it as a "Russian village." What began as a cafe and bar, expanded during the COVID-19 pandemic into a five-room hotel, eventually transforming into a 103-room hotel-apartment and event venue, which the developers called a "city."
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02-13, 2025After years of simmering tension and suspicion over permit violations, Balinese authorities finally reached their breaking point. This week, hundreds of police were dispatched to shut down the PARQ Ubud development. The project had been temporarily halted in November, so when police arrived to permanently close it, they encountered only staff, not residents. The staff present were disgruntled and clashed with the police.
I Ketut Pasek Lanang Sadia of the Gianyar Regency Government stated, "This closure was carried out in accordance with the law and regional regulations, and it went through several stages." Before its closure, PARQ Ubud touted itself as a multi-functional center with restaurants, dozens of shops, a luxury spa, event spaces, a fitness center, and an 80-meter-long swimming pool, the largest in Ubud. The project, aimed at "entrepreneurs, young families, and artists," was described as a 65,000 square meter "fusion of nature, creativity, and spiritual practice."
The "ready-to-move-in" apartments featured chandeliers and a blend of European and Balinese decor. The company described its other seven developments in Bali as "magnets for celebrities, stars, entrepreneurs, families, influencers, and investors from around the globe." Through social media advertising campaigns, the company behind the project, PARQ Development, sought to attract investors with annual passive income, rising property values, and a distinctive lifestyle. ABC attempted to contact PARQ Development's CEO, Andrei Fray, for comment, but the company's online marketing office phone either went dead or unanswered.
However, a message sent to the customer inquiry service received a brief reply stating that the closure "does not affect our work or your accommodation." "Internal issues will be negotiated between the two institutions and resolved soon," the reply stated. What might appear to investors as an international creative community, to many Balinese neighbors looked more like an expanding foreign enclave. The complex had previously been subjected to an immigration raid in April 2023, but officials found no visa violations. Immigration police also partially refuted claims of it being a Russian community, stating that only half of the 90 residents or tourists they checked were Russian citizens. A local manager told media at the time that despite the perception, the development's three shareholders were actually Balinese, German, and American.
Concerned about the further expansion of the Ubud development, the Gianyar Regency Government sought meetings last year to check if the project's permits aligned with the scale of the development. In November, according to the Bali Sun, Gianyar Regional Secretary Dewa Alit Mudiarta sent a team to suspend PARQ Ubud’s operations because "they did not have basic permits such as PBG (building approval) and SLF (certificate of function)." A police spokesperson at the time said the business owners were willing to suspend operations while they sorted out the missing permit documents. But then Indonesian media began reporting that the development had been built on what should have been protected rice paddies, and that under the law, if the correct permits were not issued, the land had to be returned. Now, two months after the temporary shutdown, the local authorities have closed it down.
The focus on PARQ comes as Bali continues to experience a villa construction boom in the wake of the COVID-19 pandemic. The Indonesian government's new long-term digital nomad visa has helped fuel an influx of expats looking to make Bali their second home. With Indonesia remaining open while sanctions and restrictions were imposed elsewhere because of the war in Ukraine, the surge in Russian tourists has led to perceptions of exclusive Russian communities in hotspots like Ubud and Canggu. Large-scale developments backed by Russian investors, including Nuanu, a 50-hectare coastal plot in Tabanan, have also added to perceptions of an influx of Russian money. But like PARQ, many of the new developments partially aimed at Russian villa buyers are not necessarily owned by Russians. One of the most controversial projects due to the scale of its original design, Taryan Dragon, is being built by a Ukrainian company. Another residential project that drew negative attention during its construction for its work crews partially demolishing a cliff face in Uluwatu, is owned by Indonesians.
The closure of PARQ appears to mark a shift in how Balinese authorities are addressing growing concerns about unchecked development. "This year is the year of how we enforce existing regulations," said Tjokorda Bagus Pemayun, head of the Bali Provincial Tourism Office. "We are open to anyone, as long as they comply with existing regulations." Last year, Bali saw a record number of overseas visitors, surpassing 6.3 million. The Indonesian tourism department said the majority of those came from Australia, India, and China.
