As Bali Cracks Down On Foreign Property Investment Tourists And Expats Look To Yacht Ownership

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Leaders in Bali are working to crack down on foreigners who are breaking immigration laws through their investment and business activities.

As leaders even question tightening policies to make it harder for investors to build properties in Bali, entrepreneurs, expats, and frequent travelers to Bali are looking to invest in luxury yachts. 

The Bali Provincial Tourism Office has confirmed that it will be cracking down on foreigners who are found to be breaking the law through their business operations, work, and investments.

The Bali Provincial Tourism Office is targeting all tourism businesses in a bid to clean up the sector, but since violations are most frequently found in the rental villa market, this is where their focus will be set first. 

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The first point of focus is business licensing in the rental villa market. The Bali Villa Rental and Management Association (BVRMA) held a stakeholder discussion called “Dissecting Villa Rental Permits in Bali.”

It is becoming increasingly clear to rental villa owners, both Indonesian and foreign, that the penalty for violating the law in small or big ways is losing the rights to their property. 

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Speaking at the stakeholder discussion, Kadek Adnyana, the Chairman of the Bali Villa Rental and Management Association, called on the Bali Provincial Tourism Office to give businesses time to get their paperwork fully in order before tightening the rules or more strictly enforcing policies that have previously been viewed as lax. He shared, “Give us time to educate our members. Don’t immediately conduct inspections, raids, and shut down these businesses. That’s not good for the business climate.”

Adnyana confirmed that some members of the BVRMA have already been affected by the inspections. At present, there are 70 companies that are members of BVRMA, which are responsible for approximately 3,000 villa units in total. Overall, this is still a small fraction of the number of private rental villas that are in operation across Bali. 

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The crackdown has been initiated by Bali Governor Wayan Koster, who has raised concerns that the system for granting business and building permits for major accommodation and residential properties in Bali, the Online Single Submission (OSS) system, is managed by the central government.

This means that the biggest development projects in Bali can get given the go-ahead without approval from any agency based in Bali.

The Bali Governor has created a Special Committee (Pansus) for Spatial Planning, Assets, and Licensing (TRAP) to enforce regulations across all regions of Bali, to help ensure that all development projects, no matter the size or scale, are operating above board from start to finish.

Governor Koster told reporters, “I have been following the steps and efforts taken by the TRAP Special Committee in several areas, as well as taking actions within their authority. The Special Committee’s activities in enforcing regulations on spatial planning, assets, and permits have been excellent. What they are currently doing is a crucial part of Bali’s future development.”

It must be noted, however, that for those businesses that are operating in accordance with the law, those that have all their paperwork, permits, and licenses in place, then there is nothing to worry about, as these crackdowns are rolled out. Nevertheless, savvy entrepreneurs are already looking to the next potential money-making market in Bali, and that is luxury yachts. 

As Benoa enters the final phase of its transformation into the Bali Maritime Tourism Hub, investors are seeking out opportunities to get ahead of the game. One of the most attractive features of the Bali Maritime Tourism Hub for investors is the new luxury yacht marina. 

Yacht Sourcing, who are based in Benoa, has officially launched its new Co-Ownership Program. This is a new initiative designed to make yacht ownership more accessible for investors. Speaking to reporters, Boumedienne Senous, Founder of Yacht Sourcing, explained, “The concept of co-ownership is simple.”

Adding “There’s a certain prestige in owning a yacht—it’s not just about access to the sea, but about a lifestyle synonymous with freedom, quality, and elegance. Through this program, we’re bringing that classy experience to life in a more accessible way.”