Establishing a Regional-Owned Limited Liability Company: Would it Support an Integrated Tourism Management in Bali?

  • Luh Ayu Nadira Saraswati EMERHUB, Market Entry Consultant, Bali-Indonesia
  • Anak Agung Gede Duwira Hadi Santosa Faculty of Law, Udayana University, Bali-Indonesia

Abstract

The rapid development of tourism in Bali has made this sector becomes the main pillar of the economy. Facts indicate that the tourism industry in Bali is not parallel with the equal distribution, which entails an imbalance in both tourism facilities and tourism management. This has an impact on chaotic tourism management: many tourist destinations and attractions were not managed properly and could not develop their potency optimally. This situation reflects an urgency to conceive an integrated tourism development and management. The Bali Provincial Government has addressed this issue by launching the concept of One Island One Management. This paper aims to analyze the tourism management arrangements in Bali with the various challenges faced in its application and to assess the establishment of Regional-Owned Limited Liability Company in realizing the concept of an integrated tourism management in Bali. In terms of writing methodology, this paper applies a normative legal research. The result suggested that a regional-owned limited liability company (LLC) can support the realization of an integrated tourism management in Bali. From a legal perspective, a regional-owned LLC is subject to the company law, which entails that it will strengthen the professionalism in managerial aspects and also will accommodate the participation of the region through the shareholder forum.

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Law and Regulation of the Republic of Indonesia
Law No. 40 of 2007 concerning Limited Liability Companies
Law No. 10 of 2009 concerning Tourism
Law No. 23 of 2014 concerning Regional Government
Government Regulation No. 54 of 2017 concerning Regional-Owned Enterprise
Bali Provincial Regulation No. 6 of 2009 concerning Bali Provincial Regional Long-Term Development Plan
Bali Provincial Regulation No. 3 of 2019 concerning the Bali Provincial Regional Medium Term Development Plan Semesta Berencana 2018-2023

Other Documents
Badan Pembinaan Hukum Nasional “Pembentukan Otonomi Khusus Bali dan Pengaruhnya bagi Keutuhan NKRI”. http://www.bphn.go.id/data/documents/lit-2011-5.pdf.
Published
2021-01-31
How to Cite
SARASWATI, Luh Ayu Nadira; HADI SANTOSA, Anak Agung Gede Duwira. Establishing a Regional-Owned Limited Liability Company: Would it Support an Integrated Tourism Management in Bali?. Udayana Journal of Law and Culture, [S.l.], v. 5, n. 1, p. 58-71, jan. 2021. ISSN 2549-0680. Available at: <https://ojs.unud.ac.id/index.php/ujlc/article/view/65621>. Date accessed: 03 july 2024. doi: https://doi.org/10.24843/UJLC.2021.v05.i01.p04.
Section
Articles