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controversial reclamation project in Benoa Bay, Bali, has hit a road block, after the location permit for the planned project expired last week.

The company holding the project, PT Tirta Wahana Bali (TWBI), was unable to fulfill and submit a request to extend the permit by the expiration date on Aug. 25. As a result, the company is now barred from continuing the reclamation project in the area.

Civil society group Balinese Forum Against Reclamation (ForBali), which comprises activists, artists and local residents, was among the first to celebrate the termination of the project.

“As the company did not get its hands on a renewed location permit, it won’t be able to submit a request for environmental impact analysis [Amdal] documents. This means the project has failed, and therefore, everything planned for the project must be canceled,” ForBali coordinator I Wayan “Gendo” Suardana said recently, adding that it was a victory for the Balinese.

According to the Maritime Affairs and Fisheries Ministry, a location permit must be obtained by a company or other party before beginning a reclamation project, in addition to a reclamation permit. The location permit is also one of the documents required to request Amdal documents, which are also required before committing to a project.

The Environment and Forestry Ministry, however, denied the claim that the project had been terminated because of the permit expiration.

“Our official position is that we will ask the company to complete its proposal and also look for possible measures to mitigate the socio-cultural impact [of the project],” the ministry’s director of business and activities environmental impact mitigation, Ary Sudiyanto, said.

Officials from the Maritime Affairs and Fisheries Ministry are yet to respond to The Jakarta Post’s request for comment.

The permit, which was valid for two years and could be renewed for two additional years, was issued for the first time in 2014 after then-president Susilo Bambang Yudhoyono issued Presidential Regulation No. 51/2014, allowing Benoa Bay to be converted from an environmental conservation zone into a business zone.

Despite massive protests from activists and local residents, the permit was extended for another two years in 2016.

Initiated for the first time in 2012, the planned project sought to reclaim 700 hectares of land upon which investors could develop luxury resorts. At the time, the project was backed by then-Bali governor I Made Mangku Pastika, who issued a gubernatorial letter granting TWBI the rights to develop and reclaim the bay for an integrated tourism development.

The letter granted the company the right to manage 838 ha of land in the bay, on which the company intended to build lavish tourism facilities, including a theme park. The letter, however, was eventually revoked by the governor in 2013 following growing public opposition.

Despite the expiration of TWBI’s permit, Gendo added that the resort island of Bali was not yet free from the prospects of reclamation as the 2014 presidential decree was still in effect. “The regulation still gives room for the company or even other companies to apply for a new location permit to continue the reclamation project in the area. Therefore, we hope the president will revoke the presidential regulation,” he said.

While acknowledging the pressure coming from many parties, an environmental expert at the Office of Presidential Chief of Staff, Abetnego Tarigan, said there had yet to be ongoing discussions about Benoa Bay within the presidential office.

He, however, ruled out the possibility of revoking the 2014 presidential regulation, as Benoa Bay was seen as a strategic location.

“Because of the importance of the area, there should be comprehensive discussions about the issue that involve many parties including academics to determine the direction of the regulation revision,” Abetnego said.