Bali’s booming real estate market continues to attract global interest from Australians, Singaporeans, the French, and the British. With its stunning coastlines and investor-friendly climate, many foreigners dream of turning their Bali property into a business venture. However, a growing number are crossing legal lines, leading to a recent spike in government crackdowns.
Bali Authorities Step Up Enforcement on Illegal Foreign Ventures
Over the past year, Bali officials have intensified efforts to investigate and shut down businesses operated illegally by foreigners. The most recent cases involved foreign nationals from Australia and Europe operating tourism businesses, wellness retreats, and unauthorized property rentals—all without the necessary permits or tax compliance.
The Indonesian government has made it clear: foreign citizens are welcome to invest and live in Bali, but not at the expense of local laws or the island’s economic integrity.
What’s Driving This Surge?
The popularity of Bali real estate among Australians, Singaporeans, and Europeans is a key factor. Many foreigners purchase villas under local nominee names or lease land for long-term development, often to operate Airbnb-style accommodations or boutique businesses. However, the process to legalize these activities—such as obtaining a PT PMA (foreign-owned company structure)—is often overlooked or misunderstood.
Bali’s real estate market has become a double-edged sword. While it attracts foreign capital, it also raises concerns for government officials who worry about unregulated activity and unfair competition with local entrepreneurs.
Countries Most Affected: Australians, Singaporeans, French, and Brits
Recent cases show that citizens from Australia and the UK have been among the most frequently caught violating business rules, followed closely by French and Singaporean nationals. Popular areas like Canggu, Uluwatu, and Ubud have seen an influx of expats operating without proper licensing.
For Australians, in particular, Bali is often viewed as an extension of home. This attitude sometimes leads to taking risky shortcuts. French and UK investors are drawn to the lifestyle. At the same time, Singaporeans often view Bali as a cost-effective market for expanding hospitality and wellness ventures.
Legal Business Ownership: What Foreigners Must Know
If you’re considering investing in Bali real estate and launching a business, it’s critical to understand the legal framework. The safest route is through a properly registered PT PMA, which allows full foreign ownership under specific conditions. Foreigners are also required to pay taxes, obtain business permits, and ensure compliance with zoning laws.
Working with a reputable legal advisor or agency can make the process smoother and help avoid costly mistakes—or even deportation.
Investing in Bali the Right Way
Bali is still one of Southeast Asia’s top destinations for lifestyle investors, digital nomads, and hospitality entrepreneurs. But the recent crackdowns send a clear message: Bali welcomes foreign investment, not illegal business activity. Whether you’re from Sydney, Paris, London, or Singapore, doing things the right way is not just a legal requirement—it’s a long-term strategy for success.