JakartaPost-Oct 6, 2024
Immigration authorities in Bali plan to conduct an in-depth evaluation of local business operations after receiving complaints about a growing number of micro, small and medium enterprises (MSMEs) on the island being controlled by foreign nationals. The measure was aimed at evaluating the performance of businesses run by foreign nationals and encouraging them to increase their investments to Rp 10 billion (US$638,162), in line with prevailing regulations, Immigration Director General Silmy Karim told The Jakarta Post on Friday. “At least, there will be no more new cases, and the current foreign business owners are encouraged [to adhere to the regulation],” he reiterated. Local business owners, supported by community leaders and politicians, have called for the central and provincial governments to ensure prevailing laws are strictly enforced. “The hope is that the government can monitor small businesses in the Canggu area and other areas, [and that] business permits will also be tightened and checked regularly, so as not to kill the businesses of local residents,” said Yoga Antara, a rental business owner in Bali, as quoted by The Bali Sun in June. A preliminary investigation carried out by the immigration office in response to the complaints confirmed foreign control of many MSMEs in the province. “According to] the policy of the BKPM in 2017, if I’m not mistaken, the minimum investment in Indonesia was Rp 1 billion. Meanwhile, if we refer to the prevailing law, Rp 1 billion is [for opening a business] in the micro category. So, there is a problem,” explained Slimy, as quoted by Kompas, noting that it was complicated for immigration officers to take action against foreigners involved in the MSME sector in Bali. A source at the BKPM told the Post on Friday that the minimum amount of capital in a foreign investment (PMA) business was Rp 10 billion, excluding the value of land and buildings. Amounts below that level were reserved for domestic direct investment (PMDN). Read more at: https://www.thejakartapost.com/business/2024/10/06/govt-pushes-foreign-msme-owners-in-bali-to-scale-up.html.
