As many as 400–500 bike rental businesses with foreign capital may be operating in Bali, but no more than five of them hold an official permit.
That estimate comes from the provincial investment and licensing agency.
The figures were gathered through on-site inspections. The agency is now looking not only at the permits that have been issued, but also at what the companies actually do.
Bali's authorities treat bike rental as a niche for local small businesses. Since July 2026, new companies with foreign capital in this sector are no longer being registered on the island: the province closed it to foreign investment along with car and truck rentals.
The inspections revealed that a single address is often home to a large number of registered firms. One commercial space was listed as the address of around 28 registered companies. This is how the virtual office scheme works: a company registers at such an address, obtains a licence for a different type of activity, and in practice rents out bikes.
The second scheme involves a nominee owner. On paper the shareholder is an Indonesian citizen, while the business is run by a foreigner.
Beyond bike rentals, the agency is also checking whether foreign capital is behind salons, photography services and retail shops. To find out whether your chosen setup fits the current restrictions, turn to Legal Indonesia.
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