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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