Bali Governor I Made Mangku Pastika has revoked a controversial decree that granted a license to a private company to develop Benoa Bay into a tourism facility.

This follows strong criticism that the project, involving massive land reclamation, could permanently damage the ecosystem.

"Effective from [last] Friday, I officially revoke the decree... after taking into account various considerations," Pastika said, as quoted by Antaranews.com.

He said the decision was partly based on a letter of recommendation from the Bali Regional House of Representatives.

"I have not yet studied the recommendation, but it is pushing for the license to use Benoa Bay to be immediately revoked. I therefore made it official yesterday that it has been revoked," he said on Saturday.

In the Antara report Indonesia's ombudsman for the island, Umar Ibnu Alkhatab, expressed his appreciation of the governor's decision. "This shows the Bali governor is aware and responsive to the opinions voiced by all elements of the public," he said.

Last December Pastika issued a permit for private investor Tirta Wahana Bali International to reclaim and develop 838 hectares of Benoa Bay for a 30-year period, which could be extended by another 20.

Pastika had initially defended the decision, saying it was based on recommendations from the Bali Legislative Council as well as a feasibility study by Udayana University, but many pointed out that the study was not yet finalized and questioned legal aspects of the permit.