Bali Governor Wayan Koster has launched a special task force to investigate and take action against illegal business operations run by foreigners, following mounting complaints from local entrepreneurs about being sidelined in their own economy.
“We have formed a cross-agency special team to conduct a comprehensive audit of tourism business licenses in Bali,” Koster said in a statement from Jakarta on Sunday.
The team includes regional officials, relevant government agencies, and tourism business associations. Its formation comes amid growing concern that foreign-run businesses—many operating without proper permits—are increasingly dominating Bali’s tourism sector, often at the expense of local communities.
Illegal businesses
The provincial administration’s review of the licensing system uncovered widespread abuse of the Online Single Submission (OSS) platform, a mechanism meant to streamline business licensing. According to Koster, many foreign businesses have exploited loopholes in the system to gain control over strategic tourism services, including micro-level sectors such as vehicle rentals and accommodations.
“Bali must not become a free market that ends up destroying its own people,” Koster said.
He pointed to Badung district, where he said around 400 permits for car rentals and travel agencies are held by foreigners.
“Many of them do not even have offices or live in Bali, yet they are allowed to operate,” he added.
Ground inspections
To curb this trend, the task force will conduct ground-level inspections to stem long-term economic harm to Bali’s tourism industry. Koster argued that the proliferation of unauthorized foreign-run businesses not only breaches business ethics but also exacerbates economic inequality and weakens the local economy.
The governor said he will issue a regulation allowing coordinated enforcement by the Public Order and Security Agency (Satpol PP) and the Bali Regional Police. He also proposed a new requirement mandating that all travel agencies register with local tourism associations.
