Nirwana Bali operates, controversy forgotten

Nirwana Bali operates, controversy forgotten

By Sylvia Gratia Miranda

TABANAN, BALI (JP): Controversy was forgotten as the Minister
of Tourism, Post and Telecommunication Joop Ave officially opened
Nirwana Bali Resort, Bali's first integrated resort, last month.

The resort is within walking distance of the sea temple Pura
Tanah Lot, one of the holiest temples for Hindu Bali devotees.

Built in the 15th century, the temple is in Tabanan regency,
about 40 kilometers south of Denpasar.

The resort's presence kindled a great deal of controversy in
early 1994 due to its close proximity to the Hindu sanctuary.

For many Balinese the US$300 million project, on which work
started in March 1994, threatens the sanctity of the temple.

Controversy over the Bali Nirwana Project become very heated
after the central board of Parishada Hindu Dharma, the highest
Hindu body, sharply criticized the Bali provincial government for
issuing permits for the project.

According to the Parishada, any development unrelated to
religious needs is forbidden within a two-kilometer radius of
Pura Tanah Lot.

The 109-hectare resort threatened the Tanah Lot shrine's
position as a decorative ornament, the Parishada said.

Now, those living near the resort have found greater
prosperity because of the project.

Dorian P. Landers, chief executive officer of PT Bakrie
Nirwana Resort, the resort's developer told The Jakarta Post that
the controversial problem was settled satisfactorily with a win-
win decision for the Balinese of surrounding villages and the
developer.

Landers said the company had renovated 12 temples within the
resorts boundaries which were opened for residents from
surrounding villages to use for worship and ceremonies.

"There are no social conflicts with residents of surrounding
villages as we kept our promise to maintain the puras (Hindu
devotees temples) and to employ their young people in our
resort," Landers said.

He said Nirwana Bali Resort employed over 1,000 people.

Seventy-five percent of the resort's employees come from local
villages and the Tabanan regency, the rest are from other parts
of Bali, Java and overseas.

Nirwana Bali Resort is made up of a five-star, 278-room Le
Meridien Nirwana Golf and Spa hotel, 184 residential units,
luxury villas, resort homes, cottages, estate lots, an executive
club, 180 timeshare suites, an 18-hole golf course designed by
golfer Greg Norman, a thallaso-therapy marine spa, and sport
facilities.

The resort is owned by its developer PT Bakrie Nirwana Resort,
a firm jointly owned by Bakrie Nusantara Corporation and Bakrie
Investindo, subsidiaries of the widely diversified Bakrie Group.

It was designed by U.S based Wimberly Allison Tong & Go, a
leading architectural firm specializing in designs for the
hospitality and leisure industry.

Sales

Landers admitted that the unstable economic condition had
affected the firm's sales of residential units -- which are sold
to customers before they are built.

He said the company had changed direction with its residential
products, and was now offering to build small villas and cottages
instead of the luxury villas it was offering before the economic
slowdown began four months ago.

He said the change was a result of consumer demand for homes
with lower price tags.

"We used to have only luxury villas and resort homes (on
offer). Now we have villas, and cottages which are smaller.

People don't have to spend over US$400,000 to buy a villa," he
said adding that cottages sold for $250,000.

He said that the company had extended its sales target
deadline due to the sluggish sales.

"Our initial target was by that the end of 1998, all
residential units, except the timeshares, were supposed to be
sold, but amid this current economic situation it is more
difficult to sell. So we set a new deadline for selling all the
residential products -- by the end of 1999."

More than 30 percent of the villas have been sold. Most buyers
are Indonesians from Jakarta.

He said construction costs had risen about 20 percent due to
increased raw material prices.

"But we're trying not to increase our product prices. We're
trying to design new models which use more traditional materials
such as alang-alang, bamboo, rattan and coconut wood," he said.

He said that the construction costs were pushed up by the 20
percent rise in the price of cement from Java.

"We are minimizing the effect of the increasing costs by using
about 70 percent local materials," he said.

The hotel reached 25 percent occupancy rates in its first
month of operation, surpassing the initial 15 percent target.

"We expect occupancy rates to reach over 75 percent next year,
as the marine spa opens in February," he said.

He said the golf course which opened in July was the most
successful facility in attracting the tourists.

It now has over 200 members.

"As we've seen a rapid demand for golf courses, we decided to
limit the membership to 550 members," Steve Lamerton, the golf
course general manager said, adding that most members were rich
people and businessman from Java.

Build to be environmentally friendly, about 70 percent of the
resort is dedicated to landscaped and open green spaces, with
over 20 hectares of original rice terraces remaining on the
resort where local farmers are allowed to tend and harvest the
crops.

Landers said that the rice terraces were another value-added
bonus for local farmers.

"We employ them to maintain and harvest the paddy fields. The
harvest ... will be given to the banjar (Balinese hamlet
association), which will distribute the rice fairly to the
residents," he said.

One of the residents, I Komang Artana, said that most people
in his village were happy that the resort was there because it
had increased the value of their land.

"Prior to the project, our land value was only ... Rp 1,300
per square meter. The project enables us to sell our land at ...
Rp 40,000 per square meter," he said.

And while the Balinese traditionally frequent the mossy
seaside temple with offerings for God, the people next door will
be busily swinging clubs, hitting white balls, or drinking soft
drinks in the lounge.

Maybe it is the price the Balinese have to pay for their
culture becoming a tourist attraction.