The Russian presence in Bali has grown significantly in recent years, with investments spanning real estate, hospitality, and wellness sectors. Here’s an overview of notable Russian assets and developments on the island:
Major Russian-Backed Developments
1. PARQ Ubud (Kampung Russia)
Once a prominent luxury complex in Ubud, PARQ Ubud expanded rapidly during the COVID-19 pandemic, evolving from a café and bar into a 103-room hotel-residence and event space. Dubbed “Kampung Russia” by locals, it became a hub for Russian entrepreneurs and digital nomads. However, in early 2025, Balinese authorities shut it down due to multiple regulatory violations, including improper land use and lack of permits.
2. Nuanu City
Spearheaded by Russian entrepreneur Sergey Solonin, Nuanu City is a futuristic development near Canggu. Set to fully open in September 2024, it aims to be a creative and residential space integrating educational facilities, art, culture, and technology. The project emphasizes innovation, sustainability, and community, hosting events like the Suara Festival.
3. Hidden City (Ubud)
Another Russian-backed project, Hidden City, is a luxury development in Ubud. While details are limited, it has drawn attention for its scale and impact on the local community. Some residents have expressed concerns over the project’s transparency and adherence to local regulations.
Real Estate Investment Trends
Bali has become a hotspot for Russian real estate investors, especially after a decline in investments in Dubai. Factors such as the depreciation of the Russian Ruble and international sanctions have shifted investor focus to Bali. In 2024, real estate sales in Bali to Russians increased 15-fold, highlighting the island’s growing popularity among Russian buyers.
Data from Indonesia’s Investment Coordinating Board indicates that Russian businesses accounted for over 6.5% of foreign investments in Bali, up from 5% in 2021, with a significant concentration in real estate.
Regulatory and Community Responses
The surge in Russian investments has led to increased scrutiny from Balinese authorities. Concerns have been raised about foreign businesses operating without proper permits and outcompeting local enterprises. For instance, a local motorcycle rental owner in Canggu observed that many small businesses from foreign nationals, including Russians, operate similarly to local residents, often without adhering to local regulations.
In response, authorities have taken action against developments like PARQ Ubud, emphasizing the need for foreign investors to respect local laws and cultural norms. The closure of such establishments underscores the importance of compliance and community engagement in foreign investments.
