<![CDATA[The legal dispute between an MSME entrepreneur and the Bitera Customary Village regarding the refusal of an operational recommendation for a night market near a Beji (sacred water spring) serves as a fundamental precedent in the dynamics of constitutional law, licensing law, and customary law in Indonesia. A tort lawsuit demanding IDR 14.15 billion in damages filed by the investor based on a Business Identification Number (NIB) was completely dismissed by the Panel of Judges at the Gianyar District Court. This article aims to doctrinally examine the enforceability of the sui generis authority of the Customary Village under Law No. 15 of 2023 on Bali Province and Bali Provincial Regulation No. 4 of 2019 on Customary Villages in Bali. This study links the issue to the application of the environmental precautionary principle and its implications for the legal boundaries of the national licensing system (OSS). This research employs a normative legal method utilizing the statute approach, case study, and conceptual approach. The results indicate that the rejection by the Bitera Customary Village constitutes a collective-collegial legal obligation to protect sacred areas and water ecosystems from potential pollution, thus failing to meet the elements of an unlawful act under Article 1365 of the Indonesian Civil Code. The court ruling emphasizes that possessing an NIB from the central or regional government does not automatically override the customary autonomy over customary territory. While administrative licenses grant formal business legality, operational activities must remain subject to customary spatial planning, environmental compliance, and the Tri Hita Karana principle. This study concludes the urgent need to integrate cultural impact assessments and customary community consent into the national business licensing framework.]]>
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