The Bali Provincial Government has taken decisive action by suspending the issuance of Foreign Direct Investment (PMA/FDI) permits for the vehicle rental business sector. This policy is implemented as a concrete effort by the local government to protect the economic sustainability of local Micro, Small, and Medium Enterprises (MSMEs) that have been threatened by foreign business dominance.
The Head of the Bali Investment and One-Stop Integrated Services Agency (DPMPTSP), I Ketut Sukra Negara, revealed that this decision was based on findings of data discrepancies in the field. Based on the Online Single Submission (OSS) system, the number of officially registered foreign-owned motorcycle rental businesses was only around 150 units. However, investigations in popular tourist destinations such as Canggu and Kuta showed more than 500 operational units, indicating widespread illegal practices.
Permit manipulation has become the main modus operandi for these foreign business actors. They allegedly exploit loopholes in virtual office services when applying for permits through the OSS system, but in reality, they operate physical vehicle rental businesses on the ground. Not limited to motorcycles, these findings also cover car and truck rentals, as well as other business sectors such as fitness centers.
In response, the government has closed 56 Indonesian Standard Industrial Classifications (KBLI) covering various investment risk categories. For FDI actors who already hold official permits, the government will provide further guidance and mentoring. Meanwhile, Bali's DPMPTSP is now collaborating with BKPM (Investment Coordinating Board) to establish a special monitoring desk to crack down on any business entities operating illegally on the Island of the Gods.
