DENPASAR, mybalinews.com – Bali Governor Wayan Koster has angered after receiving a series of complaints from the community and local micro small and medium enterprises (MSMEs).
MSME actors regarding the increasing dominance of the tourism business by foreign nationals (FNs). This situation is seen as further marginalizing the local people on their own land.
Not standing idle, Koster immediately gathered all heads of regional agencies and vertical institutions across Bali at Jayasabha, Denpasar, on Saturday (May 31), to hold an emergency meeting. A comprehensive evaluation of the tourism business licensing system and regulations became the initial step he took.
“Bali must not become a free market that kills its own people,” Koster emphasized during the meeting.
Koster’s frustration was based on numerous findings of illegal business practices carried out by foreign nationals, especially through loopholes in the Online Single Submission (OSS) licensing system.
He believes this system opens opportunities for foreign investors to control strategic sectors, even down to the micro level such as vehicle rentals and homestays.
“In Badung alone, there are around 400 licenses for car rental businesses and travel agencies controlled by foreigners. Many don’t have offices, don’t live in Bali, but still operate. This is clearly excessive,” Koster revealed.
Furthermore, he views such practices not only as unethical business conduct but also as creating inequality and worsening local economic degradation.
Koster warned that if this situation continues to be tolerated, Bali risks suffering serious decline over the next five years, economically, socially, and in its tourism image.
“Our tourism sector is not doing well. Traffic jams, trash, illegal villas, unlicensed drivers, unruly tourists—all these must be managed. But the management must start from upstream regulation and licensing,” he said.
As a concrete follow-up, Koster formed a special cross-agency team to conduct a thorough audit of tourism business permits in Bali. He is also preparing stricter regulations that favor the local community.
The initial step is the issuance of a Circular Letter on the Regulation of Business and Tourism Transportation, which will serve as the basis for joint operations by the Public Order Agency (Satpol PP) and Bali Police.
Moreover, Koster also proposed a mandatory policy requiring all travel agencies to become members of local associations. Factual verification will also be carried out to ensure there are no more “ghost” companies that are only registered in the OSS system but have no actual presence on the ground.
“This island is small, but its contribution to Indonesia is significant. We are not competing with other regions, but with countries like Thailand and Malaysia. If we are not disciplined, we will be crushed by our own market,” he stressed.
Koster’s move has received positive responses from local business actors. They see this action as a strong signal that the government is truly present to protect the people’s business space.
“If left unchecked, Bali will only become a stage for foreign business. Its people will just be spectators in their own home,” said a local MSME tourism transport operator who wished to remain anonymous.
Now, with collaborative spirit among agencies and the political courage of Governor Koster, the community’s hope is growing again. Bali is expected to once again become a fair and friendly home for its people, not just a paradise for foreign investors. ( kanalbali/RLS )
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