Bali tightens rules to stop foreign investment encroaching locals

Denpasar, Bali (ANTARA) – Bali Governor Wayan Koster stated that the provincial authority has taken measures to prevent foreign investments in the province sidelining local businesses.While receiving Deputy Minister for Investment and Downstreaming Todotua Pasaribu, the governor stated that foreigners are increasingly taking over ordinary local businesses such as rentals or lodgings.”Even in some cases motorcycle rentals are operated by them, which we believe is not correct,” Koster stated, according to the provincial statement on Saturday.Koster said that besides playing in ordinary local business fields, his side found some foreigners presenting incorrect information in their business application or manipulating their permits.”They reported the capacity as only some seats, but in reality the number is much greater,” he said.To address this issue, the governor said that Bali has implemented stricter regulations on foreign investment, based on three pillars namely investments must be above Rp10 billion (US$598 thousand), must not encroach on MSME sectors, and must not repurpose agriculturally active areas.”Bali has recorded high land conversion. If we do nothing, the ecosystem will be harmed and food sources threatened in just 10 years,” Koster added.He also said that Bali will reinforce its tax compliance for all businesses in the island province, as the authority found many illegal holiday villas did not pay their taxes.”We welcome investments as long as they remain under control, and we will penalise business violators. Investments must not come at the expense of local businesses,” the governor remarked.Endorsing the Bali government’s initiatives, Deputy Minister Pasaribu stated that the central authority will help revoke the permits of foreign businesses that violate regulations, including those encroaching on MSME sectors or disregarding local wisdom.”We must balance (the investments) while enforcing foreign investors’ rules as to ensure they are not merely doing business, but also give tangible contributions for the region and for the country,” Pasaribu remarked.The deputy minister also revealed the ministry’s plan to open a special service desk dedicated to businesses and investments in Bali.