Purpose: The purpose of this article to discover how policy-making that made by the Indonesia government related to the development of Bali Benoa Bay reclamation so that the environment around Benoa Bay stays sustain and the local community does not feel threatened by the development of Benoa Bay Reclamation, especially the Adat community.
Methodology: This article is a result of legal studies using the normative juridical method. First, a complete, thorough, and comprehensive approach becomes the base in identifying the subject matter of the problem. Second, it is made to know and understand the policy in settling the problems in spatial planning from the legal aspect of (Seokanto & Mamudji, 1994).
Main Findings: Policy change on Benoa Bay status affected social and environmental aspects. The policy that the Indonesia government made was led to a huge environmental impact on Benoa Bay. The status changed of Benoa Bay from a conservation area to an exploitation area can be a threat to the marine ecosystem and the migratory species, because in Presidential Regulation Number 54 the Year 2014 stated that it can develop reclamation in Benoa Bay.
Implications/Applications: This study discusses theories about environmental law, and analyzes them against cases so that sustainable development can be achieved. Policy or decision making must base on the use of the best information and the best science available, and in some situations, it is appropriate regarding environmental, social, and cultural factors.
Novelty/Originality of this study: As far as we are concerned, an environmental problem in Bali not particularly noticed in the development plan of the reclamation of Benoa Bay that caused by policy-making and the effect to the society and environment, this article is an attempt to viewed from a different side in addition to tourism in Bali.