Denpasar, wartaglobalbali.Id – Wednesday, May 21, 2025
The rise of illegal foreigners and fraudulent foreign investment companies (PMA) in Bali has sparked widespread concern among locals, authorities, and legal experts. As Bali continues to attract tourists and investors from around the world, the unchecked operations of unlawful businesses are undermining the island’s economy, regulatory framework, and social harmony.
Fanisa Wilson, a prominent corporate lawyer whose clientele consists of 95% foreigners, has highlighted the severity of the issue. Based at Fanisa Wilson and Partners Law Firm in Jalan Tukad Balian No. 9D, Sidakarya, South Denpasar, she warns that illegal foreign enterprises pose multiple risks to Bali’s sustainable development.
Key Consequences of Illegal Foreign Businesses
1. Economic Disruption and Unfair Competition
Illegally operated businesses often bypass tax obligations and exploit loopholes in business permits, depriving the state of revenue. This not only harms government finances but also puts law-abiding local businesses at a disadvantage.
"These illegal entities can offer lower prices because they evade taxes and licensing fees, making it impossible for legitimate businesses to compete fairly," Fanisa explained.
2. Violations of Immigration and Business Laws
Many foreigners enter Bali on tourist visas but engage in business activities, which is strictly prohibited under Indonesian law. Others use local nominees—Indonesian citizens fronting as company owners—to circumvent foreign ownership restrictions. Such practices violate the Labor Law (UU No. 13/2003) and Business Licensing Regulations (UU No. 11/2020 on Job Creation).
"Using nominees is a serious offense. If discovered, the business can be shut down, and the foreign owner deported," Fanisa cautioned.
3. Cultural Erosion and Social Tensions
Unregulated foreign-run businesses, including villas, bars, and wellness centers, often ignore Balinese cultural norms. Instances of disrespect toward local traditions have led to public outcry and conflicts with communities.
"Bali’s cultural identity must be preserved. Foreign businesses must operate responsibly and respect local customs," Fanisa stressed.
4. Weak Enforcement and Corruption Loopholes
Despite existing laws, enforcement remains inconsistent due to limited resources and alleged corruption within certain government agencies. This has allowed illegal operations to thrive.
Public Backlash and Government Response
The Balinese public and Indonesian netizens have taken to social media, demanding stricter action against illegal foreign activities. In response, immigration authorities have increased raids, leading to multiple deportations.
"The government must act decisively to protect Bali’s economy and culture," said a local business owner. "We welcome foreign investment, but it must be legal and fair."
Call for Stronger Regulations and Compliance
Fanisa urges foreign investors to adhere to Indonesian laws to avoid legal repercussions. "Compliance ensures long-term business stability and fosters positive relations with the community," she said.
Moving forward, the government is expected to enhance monitoring, streamline business permit processes, and impose stricter penalties for violations. The goal is to balance foreign investment with cultural preservation and local economic welfare.
(B13NY)
KALI DIBACA
