Jakarta. Luhut Binsar Pandjaitan -- an economic affairs advisor to President Prabowo Subianto -- revealed Thursday that many foreign-owned businesses in Indonesia’s tourist haven of Bali had been breaking the rules. 

According to Luhut, the State Development Finance Comptroller (BPKP) has conducted audits in Bali following alarming reports of unruly foreign tourists. The audits also covered the businesses belonging to the foreigners, and reports revealed that a lot of them are operating on ill-gotten permits. 

“Judging by BPKP’s audit results, there are many serious problems related to the permits for foreign-owned enterprises. Many of them got their permits without meeting the requirements. There are also those who violate the rules,” Luhut said. 

The rise of foreign businesses has sparked an unhealthy competition with the local entrepreneurs. Luhut said: “This takes a toll on Bali’s economy. We need to fix it by beefing up the supervision, increasing the capacity of our officers, and honing the existing regulations.”

Bali -- like any other province in the archipelago -- will soon hold the gubernatorial elections. Gerindra Party’s senior official Made Muliawan Arya is going against former Bali governor and PDI-P’s gubernatorial nominee Wayan Koster. The Balinese people will cast their votes on Nov. 27, and Luhut said there was no better time than the election for the tourist haven to make improvements. 

During his time as the chief investment minister under Ex-President Joko “Jokowi” Widodo, Luhut had been outspoken against misbehaving tourists in Bali. At the International Quality Tourist Conference, he even revealed that many of these foreigners set up what he called “nude clubs”. These foreign citizens are also taking away jobs from locals, particularly those working in the micro sector. Over 200,000 foreigners are estimated to currently reside in Bali. 

The Immigration Office has kicked many rule-breaking foreigners out of the province. A few months ago, Indonesia deported a Canadian citizen, known by their initials JGC, for establishing a fake company in Bali. In 2021, JGC established a company with their colleagues. This business claimed to offer consulting, graphic design, retail, and photography services. The Immigration Office, however, could not find the company’s office in the registered address.