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.