Builder Terminated After Alleged A$1.2 Million Advance Payment Dispute at Two Bali Projects
By News Desk
JAKARTA, INDONESIA — November 2025
Lux Properties Bali has confirmed it has terminated a construction contractor originally introduced during the former partnership period with Kinnara, following what it describes as serious construction deficiencies and non-performance of contracted works at two of its Bali projects.
The termination follows claims that the builder received approximately A$1.2 million in advance payments for construction works that Lux alleges were either not completed or delivered to standards below contractual and international building requirements.
Lux has confirmed that legal action is now being prepared to recover the funds, along with contractual penalties and damages, with the matter expected to proceed through formal legal channels in Indonesia.
Kinnara Not Accused of Involvement
A source close to Lux was careful to clarify that Kinnara is not being accused of wrongdoing in connection with the advance payments.
“Lux is not suggesting that Kinnara had any part to play in the A$1.2 million advance payments, and no allegation is being made that they benefited from those funds,” the insider said.
“Their involvement was limited to introducing the builder during the early stages of the project.”
Industry Warning to Developers and Buyers
The source said the situation should be seen as a broader industry warning, not a dispute involving Kinnara.
“This is a serious warning to developers and buyers to be cautious when builders request large advance payments without strict milestone-based controls,” the source added.
“We’ve seen too many instances of contractors taking advance funds and failing to deliver to agreed standards.”
Strengthening Standards and Oversight
Lux Properties Bali said it is strengthening internal systems to ensure all future contractors:
•Work under strict milestone-based payment structures
•Are independently audited
•Meet Australian and international construction standards
Lux said its focus remains on protecting buyers, investors, and the long-term integrity of all developments.
Legal proceedings related to the builder are expected to commence shortly.
