A senior legislator has asked the Indonesian government to crack down on foreigners illegally running businesses in Bali, saying they pose a serious threat to local communities and small enterprises, according to reporting from Antara News.
“We call on the government to act decisively. Bali must not be allowed to turn into a free market that ends up hurting its own people,” deputy chair of Commission VII of the House of Representatives (DPR), Chusnunia, said.
In a statement received on Tuesday (13/8/25), she called for immediate measures to address rising complaints among Balinese locals and small enterprises against illegal foreign-owned businesses.
Antara News says the complaints have not only been filed with Commission VII, which oversees industry, small and medium enterprises, creative economy, and tourism, but also shared by Balinese locals on social media, the lawmaker said.
Chusnunia opined that the serious impacts of the illegal foreign-owned businesses on local businesses can partly be observed from the resort island’s hotel occupancy rate.
She argued that the relatively high number of foreign tourist arrivals in Bali is not reflected in its hotel occupancy rate, since many tourists operate illegal lodging businesses, including guesthouses.
Foreigners tend to exploit loopholes in the Online Single Submission (OSS) licensing system to get access to strategic and micro sectors, including car rentals and homestays, she said.
This has led to unfair competition, threatened the survival of local businesses, heightened the risk of economic inequality, and shrunk opportunities for Balinese locals in the tourism sector, says Antara News.
To address the problem and safeguard the business interests of Balinese communities, Chusnunia suggested that foreign ownership in Indonesia’s tourism industry be more strictly regulated.
She also pointed out that many foreigners work illegally on tourist visas as photographers, tour guides, and surf instructors, among other roles. She stressed that the government must take firm action against such violations.
To manage over-tourism in Bali and tighten foreign investment rules, particularly in the micro, small, and medium enterprise sector, the central and local governments must maintain strong coordination, she said.
Source: Antara News