Learn from the Bali Padel Court Incident: 5 Critical Lessons About Safety Compliance for Foreign Businesses

What the Bali Padel Court Incident Reminds Us for Safety Compliance for Foreign Businesses

The recent Bali padel court incident, in which a glass wall shattered during a match and reportedly left a player with serious injuries, has sparked renewed concern about operational safety standards in Indonesia’s rapidly growing sports and leisure sector. According to local inspection findings, the facility was allegedly operating without complete building permits and had been constructed on land designated as protected agricultural zoning. While investigations continue, the case has already become a cautionary example of how gaps in regulatory oversight and structural safety can expose both operators and customers to significant risk.

Beyond the immediate physical danger caused by the breaking glass, the incident highlights deeper structural issues, from construction approvals to material specifications and land-use compliance. Commercial sports facilities, particularly those catering to international clients, must ensure that building approvals such as Persetujuan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF) are secured before operations begin. The type of materials used, including whether safety-grade tempered glass is installed, is not merely a design choice but a risk management decision.

More broadly, the situation underscores the critical importance of Safety Compliance for Foreign Businesses operating in Indonesia. Compliance is not limited to obtaining a business license; it extends to zoning verification, construction standards, occupational health and safety systems, emergency response planning, and ongoing facility inspections. In high-traffic environments like sports courts, the margin for error is minimal.

Ultimately, this incident serves as a powerful reminder that Safety Compliance for Foreign Businesses is not just regulatory formality, it is a legal obligation and a fundamental component of responsible investment.

Lesson #1, Building Permits and Legal Compliance Are Not Optional in Safety Compliance

One of the most serious issues highlighted by the Bali padel court incident was the reported absence of complete building permits. Local authorities indicated that the facility had not secured the required Persetujuan Bangunan Gedung (PBG), the official building approval replacing the former IMB, and did not hold a valid Sertifikat Laik Fungsi (SLF), which certifies that a structure is safe and fit for use. Operating a commercial venue without these approvals immediately places a business outside the boundaries of lawful operation.

Under Indonesian law, the PBG must be obtained before construction begins, ensuring that the building design complies with zoning regulations, structural integrity requirements, fire safety standards, and technical building codes. After construction is completed, the SLF is required before the facility can legally operate. The SLF confirms that the building has been inspected and meets safety, health, and functional standards appropriate to its intended use, whether hospitality, sports, retail, or mixed-use development.

For foreign investors, Safety Compliance for Foreign Businesses must begin long before the first customer walks through the door. It includes verifying land-use compatibility, submitting architectural plans for approval, ensuring structural compliance, and securing the SLF prior to commercial activity. Skipping or delaying these steps to accelerate opening timelines can expose the company to substantial legal and financial risks.

Failure to obtain PBG and SLF can result in administrative sanctions, fines, temporary suspension, or even forced closure by local authorities. In more severe cases, if injuries occur, the absence of proper permits may aggravate liability exposure for directors and shareholders. Ultimately, robust Safety Compliance for Foreign Businesses requires full construction and occupancy certification as a non-negotiable foundation for lawful and secure operations.

Lesson #2, Material & Structural Standards for Safety Compliance for Foreign Businesses

The Bali padel court incident underscores a critical truth: construction quality and material selection directly influence safety outcomes. In high-impact environments such as sports courts, the type of glass installed can determine whether an accident results in minor injuries or life-threatening harm. Standard annealed glass tends to shatter into sharp, jagged shards, increasing the risk of severe lacerations. In contrast, tempered safety glass is engineered to break into small, blunt fragments that significantly reduce injury risk. Choosing the correct material is not simply a design preference, it is a core element of Safety Compliance for Foreign Businesses operating public facilities.

Indonesian building regulations emphasize structural integrity, durability, and hazard minimization. Commercial structures must be designed to withstand foreseeable loads, environmental conditions, and user interaction. This includes proper anchoring systems, load-bearing capacity, and safe installation methods for walls, panels, and fixtures. For sports and recreational facilities in particular, impact resistance becomes a primary safety consideration.

A central component of Indonesia’s regulatory framework is Standar Nasional Indonesia (SNI), the national standard system governing product quality and safety. Certain construction materials, including types of safety glass, steel components, electrical installations, and fire-protection systems, may be subject to mandatory SNI certification. Products that fail to meet required standards can expose operators to regulatory penalties and civil liability if an accident occurs.

For foreign investors, Safety Compliance for Foreign Businesses must extend beyond obtaining permits; it requires verifying that all structural and safety-critical materials are properly certified, tested, and installed by qualified contractors. This includes maintaining documentation of supplier certifications, engineering calculations, and quality inspections. By embedding rigorous material verification into operational processes, companies not only meet legal obligations but also reduce long-term liability exposure. Ultimately, comprehensive Safety Compliance for Foreign Businesses demands a proactive commitment to certified materials and structural reliability at every stage of development.

Lesson #3, Zoning & Spatial Planning Cannot Be Ignored in Safety Compliance for Foreign Businesses

Following the Bali padel court incident, local authorities in Badung reportedly identified that the facility had been constructed on land designated as protected agricultural zoning. Such areas are often categorized under LP2B (Lahan Pertanian Pangan Berkelanjutan), which are safeguarded to preserve sustainable food production and prevent uncontrolled commercial development. Building a commercial sports facility on land restricted for agricultural use constitutes a violation of spatial planning regulations and exposes operators to administrative sanctions or closure orders.

In Indonesia, every commercial development must comply with provincial and regency-level spatial plans (RTRW and RDTR). These plans define what types of activities are permitted within specific zones, whether residential, tourism, mixed-use, industrial, or agricultural. Before submitting building applications or investing in construction, developers must verify zoning compatibility through official land-use confirmation and spatial planning approval. Failure to do so can invalidate subsequent permits, even if other documentation appears complete.

For foreign investors, land-use verification is not merely a bureaucratic step; it is an integral part of responsible development. Zoning compliance protects environmental sustainability, community interests, and infrastructure planning. When businesses bypass spatial regulations, they risk legal disputes, public backlash, and regulatory enforcement actions that can disrupt operations and damage reputation.

Ultimately, Safety Compliance for Foreign Businesses extends beyond structural integrity and construction permits. It also encompasses strict adherence to land-use and spatial planning laws to ensure that operations are legally situated and socially responsible. By conducting thorough zoning due diligence before acquisition or development, companies strengthen both their legal standing and long-term operational stability, reinforcing that Safety Compliance for Foreign Businesses begins at the land selection stage.

Lesson #4, Occupational Health & Safety Obligations Apply Beyond Construction in Safety Compliance

Occupational Health and Safety (Keselamatan dan Kesehatan Kerja or K3) obligations in Indonesia extend far beyond the construction phase. Under the Manpower Law and reinforced through the Job Creation Act framework, businesses operating facilities accessible to employees and the public must implement systematic safety management measures. This is particularly relevant for sports venues, recreational facilities, hospitality environments, and other high-traffic commercial spaces where physical activity increases the likelihood of accidents. For foreign investors, integrating K3 principles is a core component of Safety Compliance for Foreign Businesses.

K3 requirements generally include hazard identification, risk assessment, preventive controls, safety signage, and emergency preparedness. Yet in practice, common compliance gaps frequently emerge. These may include the absence of clearly marked emergency exits, lack of first-aid equipment, insufficient staff training on evacuation procedures, missing incident documentation systems, or failure to conduct routine structural and equipment inspections. In sports facilities, additional risks such as impact injuries, equipment malfunction, and crowd management must also be addressed proactively.

The regulatory expectation is not merely reactive, it requires preventive systems. Companies must establish written Standard Operating Procedures (SOPs), conduct periodic safety briefings, and ensure that employees understand emergency response protocols. Fire drills, first-aid readiness, and incident reporting mechanisms should be documented and regularly reviewed. Without these safeguards, businesses face not only regulatory sanctions but also heightened liability exposure in the event of injury.

For international operators, Safety Compliance for Foreign Businesses demands a structured safety management approach that aligns with Indonesian K3 standards. This includes appointing responsible safety personnel, maintaining inspection logs, and implementing corrective actions when hazards are identified. Ongoing monitoring, rather than one-time compliance at launch is essential. Ultimately, sustainable Safety Compliance for Foreign Businesses requires embedding occupational health and safety into daily operations, ensuring protection for both employees and customers alike.

Lesson #5. Post-Incident Preparedness and Risk Management in Safety Compliance

When a serious incident occurs, the immediate focus is often on emergency response. However, what follows afterward is equally critical. Effective risk assessments, structured incident reporting, and clear remediation strategies determine whether a business learns from an event, or repeats the same mistakes. For commercial facilities open to the public, post-incident preparedness is not optional; it is an essential pillar of Safety Compliance for Foreign Businesses operating in Indonesia.

Risk assessment should be a continuous process, not a one-time checklist completed before opening. Businesses must identify potential hazards, evaluate their likelihood and impact, and implement practical control measures. In sports and leisure facilities, this may include reviewing structural installations, assessing equipment durability, analyzing user behavior risks, and ensuring emergency accessibility. After any accident, a formal investigation should document root causes, corrective actions, and preventive improvements. Transparent reporting procedures protect both the organization and its stakeholders.

Proactive risk identification is equally important. Regular safety audits, third-party engineering reviews, and internal hazard inspections help detect vulnerabilities before they escalate into emergencies. Design reviews should evaluate not only aesthetics but also stress tolerance, material resilience, and crowd safety considerations. Integrating these reviews into routine operations strengthens operational resilience and reduces liability exposure.

For foreign-owned companies, Safety Compliance for Foreign Businesses must include systems that monitor, review, and enhance safety performance over time. This involves maintaining safety logs, tracking near-miss incidents, conducting periodic management reviews, and updating Standard Operating Procedures when risks evolve. Continuous improvement frameworks ensure that safety standards adapt to operational growth and regulatory changes.

Ultimately, sustainable Safety Compliance for Foreign Businesses is built on preparedness, documentation, and accountability. Businesses that embed structured risk management into daily operations are better equipped to protect customers, safeguard their reputation, and maintain long-term regulatory compliance.

Sector-Wide Safety Standards for 2026 & Beyond: Strengthening Safety Compliance

Looking ahead to 2026 and beyond, Indonesia’s regulatory landscape continues to emphasize stricter oversight of construction, operational safety, and risk-based licensing. Foreign investors must understand that Safety Compliance for Foreign Businesses is shaped not only by local permits but also by national regulatory frameworks governing buildings, construction management, and occupational safety systems.

At the structural level, two foundational requirements remain central: Persetujuan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF). The PBG ensures that a building’s design complies with spatial planning, engineering standards, and technical building codes before construction begins. The SLF confirms that the completed structure is safe and fit for operational use. Beyond these approvals, construction projects, especially medium- to high-risk developments, may also require implementation of a Construction Safety Management System (SMKK/CSMS), ensuring systematic hazard control throughout the build phase.

Recent regulatory updates under risk-based licensing reforms, including Government Regulation adjustments linked to the Job Creation framework (such as GR 28/2025), further integrate safety obligations into the broader OSS (Online Single Submission) system. Risk classification now determines the depth of compliance requirements, inspections, and documentation. This means that higher-risk facilities, including sports complexes and public recreation venues, face greater scrutiny both before and after licensing.

As enforcement intensifies following high-profile safety incidents, authorities are increasingly proactive in conducting inspections and audits. For foreign-owned businesses, maintaining Safety Compliance for Foreign Businesses requires ongoing monitoring rather than one-time approval. Periodic internal audits, documentation updates, and alignment with evolving regulations are essential to avoid sanctions or operational disruption.

Ultimately, sustainable Safety Compliance for Foreign Businesses in Indonesia depends on staying informed, adapting to regulatory changes, and embedding continuous compliance practices into corporate governance.

Practical Safety Compliance Checklist for Foreign Investors: Strengthening Safety Compliance for Foreign Businesses

For foreign investors entering Indonesia’s commercial property, hospitality, or sports sectors, proactive planning is essential. A structured compliance checklist can significantly reduce regulatory exposure and operational risk. Below is a practical framework designed to reinforce Safety Compliance for Foreign Businesses before, during, and after project development.

1. Verify Land Use and Zoning Before Construction
Confirm that the intended business activity aligns with provincial and regency spatial plans (RTRW/RDTR). Obtain official zoning confirmation to ensure the land is not designated as protected agricultural area, conservation zone, or restricted-use land. Early verification prevents costly redesigns or enforcement action later.

2. Secure PBG and SLF Prior to Operation
Obtain the Persetujuan Bangunan Gedung (PBG) before construction begins and ensure the Sertifikat Laik Fungsi (SLF) is issued before opening to the public. These approvals confirm structural safety, regulatory compliance, and lawful occupancy.

3. Ensure Structural Materials Meet SNI Standards
Verify that safety-critical materials, including glass panels, steel structures, electrical systems, and fire-protection equipment, comply with applicable Standar Nasional Indonesia (SNI). Maintain supplier certifications and inspection records as evidence of compliance.

4. Develop and Document K3 (Occupational Health & Safety) Plans
Prepare written safety procedures, emergency response plans, evacuation routes, and first-aid readiness protocols. Assign responsible personnel and conduct regular staff training sessions.

5. Conduct Periodic Safety Audits and Hazard Assessments
Implement scheduled inspections and independent safety reviews to identify and address risks proactively. Document findings and corrective actions systematically.

6. Maintain Adequate Insurance Coverage
Ensure public liability, property damage, and worker protection insurance policies align with Indonesian legal requirements.

By following this structured approach, investors strengthen operational resilience and reinforce long-term Safety Compliance for Foreign Businesses in Indonesia’s evolving regulatory environment.

Turning Lessons Into Lasting Safety Culture

The Bali padel court incident serves as a powerful reminder that safety failures rarely stem from a single mistake. Instead, they often reflect gaps in permits, zoning verification, material standards, and ongoing operational oversight. From securing PBG and SLF approvals to ensuring compliance with SNI standards and implementing strong K3 procedures, each layer of protection plays a critical role in preventing avoidable harm.

For foreign investors, safety is not merely a regulatory checkbox. It is both a legal obligation and a strategic differentiator. Businesses that prioritize Safety Compliance for Foreign Businesses demonstrate credibility, professionalism, and long-term commitment to responsible operations. In a regulatory climate where enforcement is increasing and public scrutiny is rising, proactive compliance strengthens reputation and investor confidence.

Ultimately, safety should be embedded into corporate culture, not treated as bureaucratic red tape, but as structured risk management that protects people, assets, and long-term business sustainability.