Foreign Nationals Dominate Motorcycle Rentals and AirBnB in Bali as Legislators Demand Crackdown
DENPASAR — The proliferation of motorcycle rental businesses and digitally-managed accommodation services such as AirBnB owned by foreign nationals has become a matter of serious concern in Bali. The Bali Provincial Government estimates that transactions in these sectors could reach Rp50 trillion, with the majority suspected of being managed through digital platforms by foreign parties. In response, legislators have called on the government to take immediate enforcement action.
Agung Bagus Pratiksa Linggih, Chairman of Commission II of the Bali Provincial Legislative Council (DPRD), said the situation was having a direct impact on local business operators, particularly in the transport and accommodation sectors. "Estimated transactions could reach Rp50 trillion, all managed through digital media. If that figure is accurate and no Balinese people are involved, this is clearly a serious problem," he said in an interview on Friday (20 February).
The chairman of HIPMI Bali (the Indonesian Young Entrepreneurs' Association, Bali chapter) confirmed that the provincial government had already taken initial steps by imposing a moratorium and writing to the Investment Coordinating Board (BKPM) to conduct oversight and enforcement. "A moratorium is already in place. The provincial government has also written to BKPM. BKPM's presence in Bali is specifically to oversee and enforce compliance. Eventually, these businesses will be compelled to adjust or restructure their operations," he said.
According to the Golkar Party politician, certain business classifications operating under Foreign Investment (PMA) schemes with non-compliant Indonesian Standard Industrial Classification (KBLI) codes would no longer be permitted to operate in Bali. The policy is expected to have a positive impact, as local business operators would no longer have to compete directly with foreign investment entities in certain sectors.
Beyond the rental and accommodation sectors, the practice of land conversion through nominee arrangements has also drawn scrutiny. Such practices are considered detrimental to the region, as actual ownership rests with foreign parties whilst local residents serve merely as administrative intermediaries.
Meanwhile, I Made Rai Warsa, a member of Commission III of the Bali DPRD, stressed that the primary issue was not solely about who the operators were, but rather about legality and business compliance. "Everything must be examined first — whether the business has proper permits, meets requirements, and complies with regulations. If it does not, then that is what must be brought into order," he said firmly on Friday (20 February).
The PDI Perjuangan politician noted that many businesses had yet to fulfil licensing requirements, lacked official permits, or were in violation of zoning regulations. These were the issues that needed to be addressed first before discussing the impact of competition. "It is the non-compliant ones that disrupt everything. Regardless of who the operator is, if they do not comply with the rules, they must be brought into line," he asserted.
Rai Warsa also acknowledged that local business operators frequently lost out in competition because digital marketing networks were controlled by outside parties. Tourists arriving in Bali were often already connected to specific service providers before even setting foot on the Island of the Gods.
However, he cautioned that in an era of digital technology and open competition, local business operators also needed to improve their competitiveness. "We should not merely complain or lay blame. The government certainly supports local businesses, but we must also improve ourselves and keep pace with the times," he said.
The Bali DPRD confirmed it would continue to push the regional government to ensure that enforcement was carried out fairly and in a measured manner, so as not to harm the investment climate whilst still protecting the economic interests of the Balinese people.
Agung Bagus Pratiksa Linggih, Chairman of Commission II of the Bali Provincial Legislative Council (DPRD), said the situation was having a direct impact on local business operators, particularly in the transport and accommodation sectors. "Estimated transactions could reach Rp50 trillion, all managed through digital media. If that figure is accurate and no Balinese people are involved, this is clearly a serious problem," he said in an interview on Friday (20 February).
The chairman of HIPMI Bali (the Indonesian Young Entrepreneurs' Association, Bali chapter) confirmed that the provincial government had already taken initial steps by imposing a moratorium and writing to the Investment Coordinating Board (BKPM) to conduct oversight and enforcement. "A moratorium is already in place. The provincial government has also written to BKPM. BKPM's presence in Bali is specifically to oversee and enforce compliance. Eventually, these businesses will be compelled to adjust or restructure their operations," he said.
According to the Golkar Party politician, certain business classifications operating under Foreign Investment (PMA) schemes with non-compliant Indonesian Standard Industrial Classification (KBLI) codes would no longer be permitted to operate in Bali. The policy is expected to have a positive impact, as local business operators would no longer have to compete directly with foreign investment entities in certain sectors.
Beyond the rental and accommodation sectors, the practice of land conversion through nominee arrangements has also drawn scrutiny. Such practices are considered detrimental to the region, as actual ownership rests with foreign parties whilst local residents serve merely as administrative intermediaries.
Meanwhile, I Made Rai Warsa, a member of Commission III of the Bali DPRD, stressed that the primary issue was not solely about who the operators were, but rather about legality and business compliance. "Everything must be examined first — whether the business has proper permits, meets requirements, and complies with regulations. If it does not, then that is what must be brought into order," he said firmly on Friday (20 February).
The PDI Perjuangan politician noted that many businesses had yet to fulfil licensing requirements, lacked official permits, or were in violation of zoning regulations. These were the issues that needed to be addressed first before discussing the impact of competition. "It is the non-compliant ones that disrupt everything. Regardless of who the operator is, if they do not comply with the rules, they must be brought into line," he asserted.
Rai Warsa also acknowledged that local business operators frequently lost out in competition because digital marketing networks were controlled by outside parties. Tourists arriving in Bali were often already connected to specific service providers before even setting foot on the Island of the Gods.
However, he cautioned that in an era of digital technology and open competition, local business operators also needed to improve their competitiveness. "We should not merely complain or lay blame. The government certainly supports local businesses, but we must also improve ourselves and keep pace with the times," he said.
The Bali DPRD confirmed it would continue to push the regional government to ensure that enforcement was carried out fairly and in a measured manner, so as not to harm the investment climate whilst still protecting the economic interests of the Balinese people.