Bali’s Governor Wayan Koster has announced the formation and immediate deployment of a specialist team to crack down on foreigners operating illegal businesses on the island.
There are concerns in Bali that an increasing number of foreign nationals are not only breaking the conditions of their visas but also illegally operating full-scale businesses in the province.
According to Governor Koster, there are at least 400 foreign-owned businesses operating illegally in Badung Regency alone. Badung Regency is the most developed region of Bali in terms of tourism and is home to resorts like Canggu, Uluwatu, Seminyak, Legian, Kuta, and Jimbaran.
On Saturday 31st May 2025 Governor Koster called an emergency meeting at the governor’s Office in Denpsar to enact immediate solutions to what many feel is a crisis of illegal operating businesses in the province.
Governor Koster explained “In Badung alone there are around 400 car rental businesses and travel agencies confirmed by foreigners. Many [businesses] do not have an office, and do not live in Bali but can still operate. This is clearly outrageous.”
The Governor conceded that Bali is struggling to resolve a range of issues, including traffic congestion, waste management, illegally operating tourism villas, illegal taxi drivers, and poorly behaved tourists. He was clear that from this moment forward ‘everything must be arranged’ starting from the top, in terms of regulation and licensing.
He added “Our tourism is not going well. Traffic jams, garbage, illegal villas, illegal drivers, naughty tourists, we have to arrange all of these. But the arrangement must start from the upstream of regulation and licensing.”
Governor Koster has confirmed that he has created the new task force and that a formal Circular Letter outlining new policies and legal changes will be issued in the coming days to enable the Task Force to carry out its work best.
The policies will be updated in a ‘Circular Letter on Business Regulation and Tourist Transportation,’ and this legislation will form the basis for joint operations carried out by Satpol PP, the civil police in Indonesia, and Polda Bali, the criminal police units.
Governor Koster added, “This island is small, but its contribution is great for Indonesia. We are not competing with other regions but with countries like Thailand and Malaysia. If we are not orderly, our own market will crush us.”
The new policies and legislative changes will be revealed in full detail in the circular letter, though Governor Koster has given some insight as to the changes that will be included in the document. One policy update is that all travel agencies and travel companies registered in Bali Province must also register with local associations.
He confirmed that factual verification will also be carried out to ensure that there are no more “ghost” companies that are only listed in the Online Single Submission system, which is managed by the central government, but are serving as shelf companies for foreigners operating illegal businesses on the ground.
Governor Koster added “If left alone, Bali will only become a stage for foreign business. Its people will only be spectators in their own home.”
Following his announcement at the weekend, the response from the business sector in Bali has been mostly positive. Bali-based business leaders have shared their support for the strengthening of business policies in the province.
Over the last three years, there has been an intensive effort in Bali to identify and deport foreigners who have been found to be breaking the conditions of their visas.
Immigration teams have been working on Operation Bali Becik and have deported dozens of individuals found to be missing tourism, pre-investment, and investment visas to operate businesses, self-employment work, and even illegal employment in the province.
Now Governor Koster’s new policies aim to crack down on foreigners breaking the law by identifying lawbreakers not only by tracking down individuals via immigration but also by identifying the businesses that are operating illegally too.
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Ray
Sunday 8th of June 2025
Start with deportation of all RUSSIANS. they ruined THAILAND and now corrupting BALI.
Mathias
Wednesday 4th of June 2025
I think, the most problem are the trash tourists.And the reason for that are, that the costs are so low for those kind of tourists. Therefore they are coming. So I think to solve mainly the problem is to rapidly increasing the prices for tourists, who are really respecting the rules.Such premium tourists can then easily replace the cheap tourists. Actually, new construction is too much. One day it will be a very bad impact because more buildings are causing more tourists. Of course i can understanding, that the locals are giving the tourists, what they want, when it comes to party and fun.
Bali must go to his roots and have quality instead of quantity, like the Maldives. A general stop of new buildings would be very helpful, even for new shops.
Especially, the Legian and Kuta area is often so congested, that the tourists can even not relax because of the traffic. They are going back to their countries with stress....
What I also miss in Depasar are parks and green spots in the town. Every meter is used for buildings and streets.
The problem is that there are nearly no new streets possible, because the extension is nearly impossible because of no space, even in Uluwatu area.
So i think Bali is having no choice for drastically reducing the tourist inflow, because as stated in the article the people will loose the interest one day and will be going to other countries.
Viktor Z
Sunday 8th of June 2025
@Steve bm,
That’s about what I thought in 2016…but more about garbage who came to Bali after being inspired by a garbage Hollywood movie and the social media nonsense around it..the activities of business people from Java in places like Ubud leading to the return of beggars.
But the post above was about the ‘good old days’ which ended more or less in 2010..
Always invested in good relations with the local police, preferably female officers, when foreigners on Bali wants to organize an event, so that you may profit of their leverage one day..😉
Steve bm
Saturday 7th of June 2025
@Viktor Z, the guy that was and wrote lonely planet back in the day said he would never go back to bali because the garbage the infrastructure kaos everyday and the destruction. You can look it up Viktor if you not in detention hahaha 😆
Viktor Z
Friday 6th of June 2025
@M,
Nonsense not that smarty, you’ve not the slightest clue what happened 20 years ago..
Backpackers were and are never added value on any destination worldwide..
Single travellers like Bill Dalton who wrote the Indonesia Handbook in the 1970s added value.
M
Thursday 5th of June 2025
@Mathias, Bali must go to his roots and have quality instead of quantity, like the Maldives.
??? the roots? back 20 years Bali was visited mostly by backpackers! the hype came with social media and the vloggers. There's never been a quality.
Steve bm
Wednesday 4th of June 2025
Go door to door if the spouse is not Indonesian with paperwork showing it its dodgy. If the owner is Indonesian but it's obvious it's a bule owned interigate the neighbours etc. Make sure every villa is legit and all legit Indonesian owners are doing the right thing as well follow the paper trails. Every villa occupants so called owner should told they can come clean and dob a foreigner in with no fear of reprisal. All dodgy villas sold and money put into a slush fund for governor and mayor and friends so they can have a nicer existence
arthur
Wednesday 4th of June 2025
as inside, so outside, this is the law of life.
money is the new god here...
Exp
Tuesday 3rd of June 2025
The Bali gov. conveniently ignore the major issue affecting the Balinese; the rampant land grabbing (not by foreigners who can not own land) but fellow Balinese and other Indonesians looking to flip and make a buck. Some of these activities are legal but a lot is also illegal like the rampant construction in the green zones that later seem to be "converted" into yellow zones. I can see this happening day by day by just looking out the window.
Shorty
Wednesday 4th of June 2025
@Exp,
It's called the real world an happens everywhere. In many jurisdictions including Australia it's easier and cheaper... you don't buy and flip, you register and pay the vendor for a first option to buy for a set price for set period.