Denpasar,NusantaraMurni.com-Wednesday, May 7, 2025 – The issue of illegal foreigners and bogus foreign investment companies (PMA) in Bali is becoming increasingly rampant, raising concerns about its impact on the local economy, regulations, and social order. Fanisa Wilson, a corporate lawyer whose clients are 95% foreigners, shed light on the complexity of this issue, especially as Bali remains a magnet for tourism and foreign investment in Indonesia. Fanisa Wilson and Partners Law Firm is located at Jalan Tukad Balian No. 9D, Sidakarya, South Denpasar, Denpasar City.
According to Fanisa, there are several serious consequences of illegal foreign businesses operating in Bali:
1.Negative Impact on the Local Economy
Illegal companies often evade taxes or misuse business permits, harming the state and law-abiding local businesses. Unfair competition also arises as their pricing is difficult for domestic businesses to match.
2. Regulatory and Permit Violations
Many foreigners establish businesses using tourist visas instead of work permits or use local “nominees” to disguise ownership. These practices violate Indonesia’s Labor Law and Business Licensing Regulations.
3. Threats to Culture and Social Order
Illegal businesses such as villas, bars, or yoga/spiritual centers run by foreigners without proper permits often disregard local norms and Balinese traditions, sparking conflicts with the community.
4. Weak Oversight and Law Enforcement
Despite clear regulations, monitoring and enforcement against violations remain weak due to limited resources or misconduct by certain individuals.
Public backlash is growing. Balinese residents and Indonesian netizens have been vocal on social media, urging the government to take firm action. Immigration and related agencies have begun intensifying raids and deportations of foreigners violating the law.
“I always advise my clients to comply with Indonesian rules and regulations to ensure their businesses run smoothly and do not harm others,” Fanisa emphasized.
The government is expected to tighten oversight and enforce the law to maintain a balance between foreign investment, cultural preservation, and the welfare of local communities. (B13NY)
