What happened
On 10 September 2025 Denpasar and surrounding areas suffered what Mongabay describes as the worst flood in the city's recorded history. A day earlier 245 mm of rain fell and about 121 million cubic metres of water filled the watershed.
Homes and shops were destroyed and rice and watermelon crops were flooded. Storm drains were clogged with debris.
The governor's response
Wayan Koster said that from 2025 productive land may not be converted to commercial use. Local officials were told to stop issuing permits for hotels, restaurants and commercial projects on agricultural land. Residential projects will be reviewed selectively.
Environment Minister Hanif Faisol Nurofiq backed the moratorium. For now it is a governor's instruction rather than a separate numbered regulation.
The Ayung problem
The Ayung river, which flows through Ubud towards Sanur, drains a 49,000-hectare basin. Forest covers just 1,500 hectares there, or 3%, while the standard is 30%. Between 2015 and 2024 the basin lost 495 hectares of forest.
Spatial Planning Law 26/2007 requires at least 30% green space in urban areas, of which 20% must be public.
This matters for Ubud because many villas sit on slopes and along tributaries of the Ayung, whose water drains down towards Denpasar and Sanur.
Why the moratorium
According to Mongabay, the moratorium aims to preserve the land's ability to absorb water and reduce flood vulnerability. Geologist Oka Agastya of the IAGI association also commented on the situation.
The governor's instruction is addressed to local authorities, which issue building permits.