Jakarta. The Bali government is planning to restrict foreign investments to protect local businesses in the tourist haven.

Bali Governor Wayan Koster recently met Deputy Investment Minister Todotua Pasaribu to discuss the plan. The governor revealed that many foreign investors had taken over locals’ sources of income, be it vehicle or vacation rentals. Some foreign-owned businesses are also lying when applying for permits via the government’s online single submission (OSS) system, according to Koster. 

“In their permits, they [the foreign investors] only report a certain number of seats. However, [the restaurant] actually has a bigger capacity. We have evaluated things. There is a new regulation to keep everything in check,” Koster said, as reported by the state-run news agency Antara.

The governor then proposed some measures to control international investors. This includes only accepting foreign investments that are worth at least Rp 10 billion ($598,731) and ensuring that the local small businesses remain untouched by big businesses. Koster also pitched a ban on the conversion of productive lands, particularly the rice fields.

"Land conversion in Bali is already high. If left unchecked, the ecosystem will be damaged and food sources will be threatened within 10 years. We will tighten this," he said.

The Bali government has also found many illegal villas failing to pay taxes. Koster also unveiled plans to draft a circular letter on these measures.

Todotua told Koster that Indonesia had already revoked hundreds of permits of businesses whose operations were detrimental to small enterprises and local wisdom. 

“We must make sure that foreign investors are not only doing business here, but they make actual contributions to the region and our country,” Todotua said.

Government data showed that Bali had amassed $481.4 million worth of foreign investments in the first quarter of 2025. The investments flowed into 24,626 projects.

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