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Straits Times
2 days ago
- Business
- Straits Times
Bali to clamp down on illegal foreign-owned businesses
All travel agencies, including those owned by foreigners, will need to join the local tourism association to ensure better management and oversight. PHOTO: EPA-EFE JAKARTA - Bali Governor I Wayan Koster has formed a special task force to crack down on illegal foreign-owned businesses, following widespread permit violations by foreign investors that are believed to be harming the local economy. According to Mr Koster, the team will consist of local stakeholders and tourism associations and will be tasked with thoroughly auditing tourism business permits in Bali. 'I will also issue a circular that will serve as a legal basis for the Bali Public Order Agency and the Bali Police to take action against businesses that violate their permits,' Mr Koster said on June 1, as reported by Antara. He will also require all travel agencies, including those owned by foreigners, to join the local tourism association to ensure better management and oversight. Mr Koster said the crackdown was essential to protect Bali from 'economic, social and tourism setbacks', arguing that illegal foreign businesses might exacerbate the wealth gap on the island and accelerate the deterioration of the local economy. 'There are numerous challenges facing tourism in Bali, such as traffic congestion, mounting waste issues, illegal villas and rowdy tourists. 'While we are committed to addressing these problems, the root causes must be tackled upstream through stronger regulations and stricter permit enforcement,' he said. Mr Koster stated that in recent years, he has received numerous complaints about an increasing number of micro, small and medium-sized enterprises (MSMEs) i n Bali being operated or controlled by foreign nationals. According to existing regulations, foreign investment businesses must have a minimum capital of 10 billion rupiah (S$791,000) excluding the value of land and buildings, an amount that exceeds the capital of MSMEs. Any investment below that threshold is strictly reserved for domestic direct investment. However, Mr Koster said many foreign investors have been exploiting loopholes in the government's Online Single Submission (OSS) system for business licensing, allowing them to dominate strategic sectors in Bali's tourism industry, even at the micro level. The government launched the OSS system in 2018 to streamline and simplify the business licensing process, allowing business owners to apply for permits through a single integrated online platform instead of navigating multiple state institutions. However, oversight of the system has been relatively lax, leading to various violations in the field. For example, there have been numerous reports of foreign nationals using the identities of local Bali residents to register their MSMEs through the OSS system. Mr Koster revealed that more than 400 car rental and tour businesses in Badung Regency, a major tourism hub in Bali, are owned by foreign nationals. 'Most of these businesses don't even have a physical office in Bali, and their owners are not based here. This is unacceptable. Bali cannot be treated as a free trade zone at the expense of its own people,' he said. In November 2024, National Economic Council chairman Luhut Pandjaitan stated that President Prabowo Subianto had instructed his aides to closely monitor foreign companies operating in Bali and to implement stricter regulations. 'Violations of business permits by foreign investors are a serious problem that have created unfair competition and significantly harmed local businesses,' he said. Overtourism and overdevelopment have become serious issues in Bali as tourism returns to the island following the Covid-19 pandemic. Reports of rowdy tourists violating local customs and unlicensed businesses competing unfairly with locals have become increasingly common in recent years. Earlier in June, the Bali chapter of the Indonesian Hotel and Restaurant Association reported an approximate 20 per cent decrease in hotel occupancy rates, despite the rising number of tourists visiting the island. The association attributed this trend to travelers increasingly choosing 'illegal accommodations', such as unlicensed luxury kos-kosan (boarding houses) and villas. In January and February, Indonesian immigration authorities detained 312 foreign nationals in Bali for visa violations related to problematic foreign investments. A few months earlier, the authorities revoked the business permits of 267 foreign companies for failing to meet the 10 billion rupiah capital requirement. THE JAKARTA POST/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
2 days ago
- Business
- The Star
Bali to clamp down on illegal foreign-owned businesses
DENPASAR: Bali Governor I Wayan Koster has formed a special task force to crack down on illegal foreign-owned businesses, following widespread permit violations by foreign investors that are believed to be harming the local economy. According to Koster, the team will consist of local stakeholders and tourism associations and will be tasked with thoroughly auditing tourism business permits in Bali. "I will also issue a circular that will serve as a legal basis for the Bali Public Order Agency [Satpol PP] and the Bali Police to take action against businesses that violate their permits," Koster said on Sunday (June 1), as reported by Antara. He will also require all travel agencies, including those owned by foreigners, to join the local tourism association to ensure better management and oversight. Koster said the crackdown was essential to protect Bali from 'economic, social and tourism setbacks', arguing that illegal foreign businesses might exacerbate the wealth gap on the island and accelerate the deterioration of the local economy. 'There are numerous challenges facing tourism in Bali, such as traffic congestion, mounting waste issues, illegal villas and rowdy tourists. While we are committed to addressing these problems, the root causes must be tackled upstream through stronger regulations and stricter permit enforcement,' he said. Koster stated that in recent years, he has received numerous complaints about an increasing number of micro, small and medium enterprises (MSMEs) in Bali being operated or controlled by foreign nationals. According to existing regulations, foreign investment (PMA) businesses must have a minimum capital of Rp 10 billion (US$613,000), excluding the value of land and buildings, an amount that exceeds the capital of MSMEs. Any investment below that threshold is strictly reserved for domestic direct investment (PMDN). However, Koster said many foreign investors have been exploiting loopholes in the government's Online Single Submission (OSS) system for business licensing, allowing them to dominate strategic sectors in Bali's tourism industry, even at the micro level. The government launched the OSS system in 2018 to streamline and simplify the business licensing process, allowing business owners to apply for permits through a single integrated online platform instead of navigating multiple state institutions. However, oversight of the system has been relatively lax, leading to various violations in the field. For example, there have been numerous reports of foreign nationals using the identities of local Bali residents to register their MSMEs through the OSS system. Governor Koster revealed that more than 400 car rental and tour businesses in Badung Regency, a major tourism hub in Bali, are owned by foreign nationals. 'Most of these businesses don't even have a physical office in Bali, and their owners are not based here. This is unacceptable. Bali cannot be treated as a free trade zone at the expense of its own people,' he said. In November, National Economic Council (DEN) chairman Luhut Pandjaitan stated that President Prabowo Subianto had instructed his aides to closely monitor foreign companies operating in Bali and to implement stricter regulations. "Violations of business permits by foreign investors are a serious problem that have created unfair competition and significantly harmed local businesses,' he said. Overtourism and overdevelopment have become serious issues in Bali as tourism returns to the island following the Covid-19 pandemic. Reports of rowdy tourists violating local customs and unlicensed businesses competing unfairly with locals have become increasingly common in recent years. Earlier this month, the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI) reported an approximate 20 per cent decrease in hotel occupancy rates, despite the rising number of tourists visiting the island. The association attributed this trend to travelers increasingly choosing 'illegal accommodations', such as unlicensed luxury kos-kosan (boarding houses) and villas. In January and February, Indonesian immigration authorities detained 312 foreign nationals in Bali for visa violations related to problematic foreign investments. A few months earlier, authorities revoked the business permits of 267 foreign companies for failing to meet the Rp 10 billion capital requirement. - The Jakarta Post/ANN
South China Morning Post
09-05-2025
- South China Morning Post
Indonesia comes to the Netherlands as Europe's first Balinese temple opens near Amsterdam
The first Balinese Hindu temple in Europe has formally opened in the Netherlands , a move that symbolises cooperation between the two regions and aims to encourage tourism to the Indonesian island. Advertisement The Santa Citta Bhuwana Temple – located within Overijssel province's Taman Indonesia, a zoological garden some 125km (78 miles) northeast of Amsterdam – offers a gateway to the island's traditions for both its diaspora and a wider European audience. Bali Governor Wayan Koster, who attended the formal opening ceremony on Saturday, personally brought the ceremonial items needed for the temple's purification ceremony, according to The Bali Sun. The inauguration coincided with Hari Raya Kuningan, an auspicious day on the Balinese calendar when ancestors are believed to ascend back to the heavens after 10 days on earth, and saw a large turnout. Close to 300 Balinese Hindus attended the opening of Pura Shanta Citta Bhuwana in the Netherlands. Photo: Instagram/@tamanindonesia Koster expressed hope that the temple would become a vital spot 'not only for the sake of holidays but as a means of gathering to develop a sense of family and togetherness among the Balinese people'. Advertisement The Netherlands is home to a large Indonesian community, a legacy of the Southeast Asian country's long history as a former Dutch colony.
Yahoo
04-04-2025
- Yahoo
Bali bans ‘menstruating tourists' from temples in strict new rules to crack down on ‘misbehaving' visitors
Authorities in Bali, Indonesia have unveiled a new policy banning 'menstruating tourists' from entering temples over concerns that 'dirty' period blood will contaminate their holy sites. This unorthodox law is included in a list of policies the tropical island's governor, Wayan Koster, imposed on March 24 to clamp down on 'misbehaving tourists' overrunning the paradise, per a report from Metro. 'I am implementing this circular as an immediate measure to regulate foreign tourists while they are in Bali,' declared the honcho. Under the new rules, women would be prohibited from entering Balinese temples while on their period out of fear that menstrual plasma is 'dirty' and would 'make the temple become impure,' Visit Bali reported. According to stories passed down from 'generation to generation, there are negative effects if you are determined to enter the temple during menstruation,' the site warns. 'Many women experience pain and faint while in the temple. Reportedly, there are also mystical events that can befall menstruating women in temples, such as possession.' And it wasn't just the menstruating women who were affected, per the site, which declared that 'residents around the temple could be affected by natural disasters and diseases' prompted by a period. 'If you are menstruating while on holiday in Bali, don't worry!' they concluded. 'There are many other entertainment spots around the temple, such as watching traditional dance performances.' They didn't specify how they plan to check whether a woman is on her period. These weren't the only rules unveiled to preserve the 'cultural integrity and sacred sites' on the majority Hindu island. The guidelines mandate that visitors should 'dress appropriately when visiting temples, tourist attractions, or public spaces,' and won't be permitted to 'enter sacred temple areas unless they are worshippers wearing traditional Balinese attire,' Timeout reported. Other prohibited behaviors, per the new mandate, include using single-use plastics like plastic bags and straws, being rude to locals, swearing and littering. To enforce these laws, Bali has formed a special task force whose job it is to monitor visitors and punish 'naughty' violators with penalties ranging from fines to jail time. 'We issued a similar regulation before, but as things change, we need to adapt,' announced Koster. 'This ensures that Bali's tourism remains respectful, sustainable, and in harmony with our local values.' 'Bali is a beautiful, sacred island, and we expect our guests to show the same respect that we extend to them,' he added. In February 2024, Bali introduced a tourist fee, charging international tourists 150,000 rupiah ($10) to enter the island through Bali's Ngurah Rai airport in Denpasar or any of the island's ports, the Daily Mail reported. The government aims to use the entree fee — and likely the aforementioned fines for rulebreakers — to protect the environment of Bali, which is expected to see between 14 and 16 million visitors this year. These rules come amid a rash of incidents involving unruly tourists, including an incident in 2023 where a foreigner was spotted meditating naked at a Hindu temple. Earlier this month, a Norwegian tourist had his visitor visa revoked after he was caught hiking a cultural and spiritual site without a guide. Bali isn't the only travel destination imposing measures to curb the global tour-nami. Last January, officials in Venice, Italy announced policies to limit large tourist groups in the sinking city, as part of a campaign to curb congestion on the often narrow streets and waterways of the historic hotspot. Meanwhile, Spain attracted a record 94 million tourists last year, stoking complaints about 'overtourism, ' including concerns about overcrowding, water use, and particularly the availability and affordability of housing. In response, Spanish Prime Minister Pedro Sánchez rolled out a 12-part plan to tackle the housing crisis, with measures aimed at bringing stricter regulations to short-term rentals that mainly cater to tourists.
Yahoo
28-03-2025
- Yahoo
Bali expands tourist guidelines over misbehavior from travelers
(NewsNation) — Bali Governor Wayan Koster is heightening guidelines for tourists, according to the Indonesian government's Love Bali program. Koster and Bali's head of tourism, Tjok Bagus Pemayun, expanded on a list of dos and don'ts first published in 2023. 'We issued a similar regulation before, but as things change, we need to adapt,' Koster said during a Monday press conference. 'This ensures that Bali's tourism remains respectful, sustainable and in harmony with our local values.' Trump administration potential travel ban concerning airlines: Editor Rules include shelling out for Bali's tourist levy, equivalent to $9 USD. Left unpaid, travelers would be blocked from certain attractions in the Indonesian province. Other new rules include respecting sacred sites and symbols, dressing in 'modest and respectful clothing,' and behaving respectfully while in public. Also outlined are requirements for foreign travelers to use only licensed tour guides, authorized money exchange services, legal car rentals and licensed accommodations. Amtrak passenger may have exposed travelers to measles: Officials For those driving in Bali, the rules of the road require you: Have an international or national driver's license Obey traffic signs Don't drive under any influence Wear a helmet on motorbikes or motorcycles As outlined by the new rules, tourists are forbidden from: Entering sacred areas without traditional attire or while menstruating Climbing sacred monuments and trees Using single-use plastics Littering Operating a business without proper permitting Trading drugs, endangered animals and other prohibited things Swearing or being rude to Balinese locals and officials, as well as other tourists The announcement warns that those who violate the new rules, known formally as Circular Letter (SE) Number 7 of 2025, 'Will face legal consequences in accordance with Indonesian law.' Cruise passenger suffers fatal accident during stop in Bahamas: 'Tragic' 'All stakeholders must fully understand, implement, and communicate this circular to their teams and foreign visitors. Bali is a beautiful, sacred island, and we expect our guests to show the same respect that we extend to them,' Koster said. The Balinese government said it encourages the public to report infractions to its official WhatsApp hotline, which would prompt action from the province's law enforcement. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
