In a pointed address at Udayana University, Indonesia’s National Economic Council Chair Luhut Binsar Pandjaitan took foreign businesses in Bali to task, highlighting a troubling pattern of companies sidestepping regulations and gaining permits without meeting basic requirements, according to his recent Instagram post.
Luhut’s remarks come amid growing scrutiny of Bali’s foreign investment landscape, with findings from the Financial and Development Supervisory Agency (BPKP) revealing widespread lapses in oversight.
“Many companies have been granted licenses despite failing to fulfill requirements, and some are outright violating regulations,” his post wrote. “This kind of unregulated entry disrupts fair competition and harms local entrepreneurs, negatively impacting Bali’s economy.”
However, as Luhut did not cite specific findings from the BPKP report on his written account, it remains unclear why — or whether — licenses have been granted to businesses that, according to him, failed to meet the necessary requirements.
The warning from Luhut underscores a shift in Bali’s approach to foreign investment, as officials signal stricter monitoring and enforcement. Citing the need for “urgent reform,” Luhut outlined plans to bolster oversight through improved regulatory measures, staff training, and tighter controls on foreign-owned enterprises. These efforts, he asserted, are essential for Bali to maintain its cultural integrity while safeguarding local business interests.
Bali’s Role in Indonesia’s Broader Economic Vision
In his recap post of the event, Luhut’s also noted President Prabowo Subianto’s broader economic agenda, which prioritizes inclusive growth and reduced government inefficiency to optimize public investment.
Yet for Bali, he emphasized, the stakes are unique. He urged local leaders to protect Bali’s distinctive identity and cultural values, describing the island as a model for sustainable tourism and development that could lead the way for other provinces.
As Bali approaches its regional elections, Luhut stressed that new leadership must uphold Tri Hita Karana, a traditional Balinese philosophy emphasizing harmony between people, nature, and the divine.
He expressed hopes that Bali’s government will focus on the welfare of the island’s residents, prioritize fair business practices, and avoid conflicts of interest that undermine trust.
Looking ahead, Luhut painted a vision for Bali that aligns with Indonesia’s 2045 national goals: a world-class destination that remains accessible to future generations, built on responsible economic policies that respect the island’s cultural and environmental legacy.
