BALI – Bali immigration authorities have exposed a growing trend of foreign nationals misusing investment schemes to work illegally in the region.
Brigadier General Yuldi Yusuma, Director of Immigration Supervision and Enforcement at the Ministry of Law and Human Rights, revealed that many foreigners exploit Foreign Investment Companies (PMA) as a front to secure residency permits while avoiding the required immigration administration fees.
According to a report posted by @pawisikbali and @niluhdjelantik on Sunday, February 23, 2025, these foreigners establish PMA entities as a cover, despite not engaging in legitimate business activities as required by law.
How the Scheme Works
One of the most commonly targeted sectors is the restaurant industry, where foreigners claim to be investors but are actually seeking employment in Bali.
“If the PMA they establish is merely a front, they can bypass administrative fees that should be paid for hiring foreign workers,” Yusuma stated during a press conference at Ngurah Rai International Airport on Friday, February 21, 2025.
Under Indonesian regulations, PMAs hiring foreign workers must pay specific fees. However, by setting up shell companies, these obligations are evaded, leading to an increase in illegal employment cases.
Even more concerning, some of these PMAs appear to be legitimate investors but are actually created solely to facilitate illegal employment.
Indonesia requires a minimum capital investment of IDR 10 billion (approximately USD 650,000) for any foreign investment company. However, many of these businesses exist only on paper, with the primary goal of securing residency permits and working in Bali without making any real investments.
Mass Deportation of Foreigners Linked to Fake PMAs
To curb this issue, the Directorate General of Immigration (Ditjen Imigrasi) has launched a large-scale crackdown on problematic PMAs and their sponsored foreigners.
Between January 14-17 and February 17-21, 2025, immigration authorities inspected 267 foreign investment companies in Bali. The investigation revealed that 74 of these companies were still actively sponsoring 126 foreign nationals, despite having their Business Identification Numbers (NIB) revoked.
As a result, 15 foreigners have already been deported, with another 111 set to be expelled from Indonesia.
Acting Director General of Immigration, Saffar Muhammad Godam, confirmed that the majority of these individuals were from China, Russia, Pakistan, India, and Australia, working in the trade and consulting sectors.
Further investigations into foreign nationals sponsored by problematic PMAs are ongoing, and authorities are committed to ensuring strict enforcement of investment regulations.
“Many of these companies failed to meet the required IDR 10 billion investment commitment, meaning the expected foreign capital did not materialize as promised,” Godam stated.
Additionally, 208 foreigners were found to be sponsored by 43 companies suspected to be entirely fictitious. So far, 48 of these individuals have already been deported.
Nationwide Crackdown on Illegal Foreign Workers
In addition to Bali, Indonesian immigration authorities have also conducted inspections in North Maluku’s mining sector, where thousands of Chinese workers were found employed under questionable circumstances.
The crackdown, part of Operation Wira Waspada, aims to ensure all foreign nationals comply with Indonesian immigration laws. This initiative involves direct field inspections and collaboration between immigration offices in Bali, North Maluku, and other key regions.
Minister of Immigration and Corrections, Agus Andrianto, emphasized that Indonesia is committed to enforcing its immigration laws and ensuring that foreign workers contribute positively to the country’s economy.
“We will not hesitate to take firm action against anyone violating regulations and disrupting order,” he asserted.
By continuously identifying and prosecuting these illegal operations, Indonesian immigration authorities aim to create a deterrent effect and prevent further exploitation of legal loopholes.