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View all search resultsBali cracks down on foreign-owned small businesses amid concerns over local economy
Koster revealed last year that more than 400 car rental and tour businesses in Badung regency, one of Bali’s main tourism hubs, were owned by foreign nationals. Many of these businesses, he said, did not even maintain a physical office on the island.
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Beach walk: Tourists walk on April 8 along Kuta beach near Denpasar, Bali. (AFP/Sonny Tumbelaka)
B
ali is tightening restrictions on foreign investment in small tourism, food and lifestyle businesses as authorities move to protect local enterprises that have been struggling to compete with a growing number of foreign-owned operators on the holiday island.
Bali Governor I Wayan Koster said his administration has delisted 18 business categories from the government’s Online Single Submission (OSS) licensing system, effectively preventing businesses in those sectors from obtaining new licences.
“The decision was made after we found that some businesses had exploited loopholes in the OSS system, allowing them to operate without meeting the substantial capital requirements normally applied to foreign investors,” Koster said on Wednesday.
He added that the practice could create unfair competition and threaten the sustainability of local businesses, particularly micro, small and medium enterprises.
The government introduced the Online Single Submission (OSS) system in 2018 to simplify and accelerate the business licensing process by allowing entrepreneurs to apply for permits through a single integrated online platform, rather than dealing with multiple government agencies.
However, Koster said some foreign-owned businesses in Bali had taken advantage of the system by registering their operations under low-risk business categories in the Indonesian Standard Industrial Classification (KBLI) within the OSS platform.
Read also: Hotels demand crackdown on unlicensed rentals in Bali
