Bali which has been a haven for tourists is now facing a growing concern: the influx of foreign nationals venturing into businesses, often disregarding local regulations and posing unfair competition to local entrepreneurs.
Unregulated Businesses
Waty Silalahi, a home living entrepreneur who has been operating in Bali since 2009, expressed her frustration with this influx which is creating an uneven playing field. She highlighted how these foreigners, who initially came as tourists or consumers, have now been operating business unfairly. They set up businesses without following proper procedures or obtaining the necessary permits.
“We see there are foreigners who are very aggressive in entering Bali and then setting up businesses without any permits or legal procedures that must be followed. Meanwhile, local entrepreneurs have to follow so many regulations,” Waty said to the press, at the end of April.
According to her, this unregulated business activities by foreigners threatens cultural heritage and disrupts the local economy. Business sectors that should be the domain of local entrepreneurs are being encroached upon. For example, foreigners holding tourist visas operating motorcycle rentals with fleets of hundreds of vehicles, have sparked outrage among Balinese residents.
“On social media, there are also lots of advertisements about them selling property in Bali. Do they even have the legal basis to do that? Have they got the proper documents?” said Waty, adding another case.
Waty also expressed her concern regarding unregulated business practices of some foreign nationals in Bali. She emphasizes the disregard for legal and ethical obligations, including tax payments, business registration procedures, fair labor practices, and the preservation of social, cultural, and environmental values.
Ensure Sustainable Development
The influx of foreign nationals venturing into businesses in Bali has highlighted the issue of unregulated operations. Like many developing economies, Indonesia recognizes the value of foreign investment in stimulating economic growth.
Foreign investment is significant to drive the local economy. It can bring fresh capital, innovative ideas, open employment and expertise that benefit local markets. So the goal isn’t to keep foreign businesses out of Bali, but collaboration instead of competition.
However, it must be done in accordance with applicable regulations to ensure that it benefits everyone. By fostering collaboration and ensuring equal opportunities, both foreign investors and local businesses can also contribute to Bali’s continued success.
The key is to ensure everyone plays by the same rules. Proper planning, adherence to law and regulations, and respecting local traditions are crucial to ensure sustainable development in Bali. Regulations regarding permits, taxes, and labor practices should be clear, transparent, and applied consistently to all businesses.
Fulfilling Legal Compliance
Bali’s attraction extends beyond tourism and wellness. But once again, a key concern for running business is ensuring fairness for both local and foreign businesses. Stronger enforcement mechanisms and increased awareness about law and regulations are crucial to foster a transparent environment where everyone operates under the same rules, leading to a healthy and competitive business landscape for Bali.
Foreign investors can contribute significantly to Bali’s success, but legal compliance is significant. Establishing a PT PMA (Penanaman Modal Asing) ensures proper business operations within Indonesia’s framework. Additionally, running business in Indonesia also means we need to meet other legal requirements. For example applying living permit and business licenses in accordance with your business classification (Indonesian Standard Business Field Classification or KBLI), submitting periodic financial reports like tax return and investment activity.
Seven Stones Indonesia can be your trusted partner in navigating the legalities of living and working in Bali. With our expertise in immigration and legal business matters, you can ensure your stay is legal, compliant, and allows you to contribute meaningfully to Bali’s economy. Contact Seven Stones Indonesia today and find out how we can assist you in securing your legal stay and maximizing your business potential in Bali.
