Bali is closing off part of its small business sector to foreigners. The restrictions apply to 56 types of low- and medium-low-risk activities, including motorbike, car and lorry rentals.
In spring, Governor Wayan Koster proposed banning foreign capital from sectors where, he said, local entrepreneurs should be operating: vehicle rental, property rental, restaurants, tourism, fitness and other small businesses.
The authorities now say the restrictions have already been added to the OSS system, which is used in Indonesia to register companies and apply for business permits.
In total, 56 KBLI codes have been closed to foreign companies in Bali. KBLI is Indonesia’s classification of business activities. Each business sector has its own code, which the government uses to identify what a company does.
The authorities have paid particular attention to motorbike rentals. According to I Ketut Sukra Negara, head of Bali’s investment and licensing agency, around 150 foreign companies linked to motorbike rental are officially registered in Bali. However, inspections in Canggu and Kuta showed that there are actually more than 500 such businesses.
Officials believe that some companies are operating illegally. Some may have registered through virtual offices or declared one type of business while actually carrying out another.
Important: this does not mean that all foreign-owned rental businesses must close immediately. Legal companies that are already registered can continue operating. However, new foreign companies will no longer be registered in Bali under the closed codes.
The authorities say they will inspect and close illegal businesses together with Indonesia’s Ministry of Investment. A dedicated foreign investment monitoring team is already operating in Bali for this purpose.
If you want to open your own business in Bali, Legal Indonesia can advise you on which sectors are open to you. The agency’s specialists will also prepare all the necessary documents so that you can operate legally in Indonesia.
Source: antaranews.com
You can add one right now!