Investment issues, especially in real estate, have not gone unnoticed by the authorities. Deputy Minister of Investment and Industry (BKPM), Todotua Parasibu, acknowledged that potential investors in Bali still face many difficulties. To better understand the situation, the official held an open dialogue with businesspeople—both Indonesian citizens and foreigners investing in Bali—and found that many are dissatisfied with the complexity of the system.
“Investments need to be properly organized, particularly regarding the balance between local traditions, society, and regional authorities,” said Todotua Parasibu.
Lucas Meyer, a foreigner who obtained Indonesian citizenship and works as a lawyer, also an investor, highlighted several issues faced by investors in Bali. He complained about the difficulties in obtaining permits, especially in the real estate sector.
“The issue concerns the permit system, which remains insufficiently predictable,” he added.
Besides complex permits, Lucas also pointed out technical issues with the OSS platform (Online Single Submission) — an electronic integrated business licensing system designed to simplify obtaining permits on a 'one-stop' basis.
After listening to him, Todotua explained that the disruptions in the OSS are due to the system's expansion process after connecting new ministries and agencies.
Previously, the OSS included 26 ministries, but recently the system expanded to include many more agencies, which understandably led to problems. The system is actively being refined, and soon all major issues will be resolved.
Todotua assured that the government would also work on speeding up and simplifying licensing. He urged active reporting of system problems so that they can be addressed more quickly.
Todotua also advised potential investors not to give in to promises from intermediaries who claim they can quickly arrange all permits. In case of difficulties, he assured that one should directly contact the Bali Investment Department.
The general idea of the dialogue with investors was that only joint discussion of issues and direct dialogue will lead to the creation of an optimal system that satisfies all parties and operates reliably and promptly.
From 2024, the Ministry has revoked licenses from 623 businesses. Some received warnings, while others were temporarily suspended. Only a few were able to return to business after resolving issues with the authorities. Despite this, investments in the island are growing at an unprecedented rate of 17.2 percent per year, indicating that investors remain optimistic about the island's future despite potential difficulties.
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