November 25, 2024
JAKARTA – National Economic Council (DEN) chairman Luhut Pandjaitan has raised concerns about foreign firms operating in Bali, citing that many of them have violated rules and did not comply with business regulations.
Luhut cited those findings from audits prepared by the Development Finance Comptroller (BPKP), stressing they are “serious problems”.
“Many companies get permits without meeting the requirements, some even violated the rules,” Luhut wrote on his Instagram account on Thursday.
Luhut went on to say that such practices have created an unfair competition and “hurt local businesses”.
President Prabowo Subianto has asked his aides to pay close attention and provide more stringent regulations due to this matter, Luhut said.
“This must be addressed immediately by implementing tighter supervision by increasing the number of [enforcement] officers and improving regulations,” Luhut said in the same statement, hoping that the measures would help Bali become a good example of sustainable development.
During his time as coordinating maritime affairs and investment minister, Luhut pointed to examples of massive construction of clubs established by foreigners, some of which have morphed into nude clubs.
“We do not wish to see the [paddy] fields become villas or pornographic [nude] clubs. We do not allow them [to build those],” he said during a virtual speech at the 2024 International Quality Tourism Conference on Aug. 29, as reported by Kumparan.
At the time, Luhut ordered BPKP and the immigration directorate general to audit the clubs to preserve the province’s title as a “paradise island” including its cultural wisdom.
Immigration authorities in Bali planned in early October to conduct an in-depth evaluation of local business operations after receiving complaints about a growing number of micro, small and medium enterprises (MSMEs) on the island being controlled by foreign nationals.
Long Indonesia’s premier tourist destination, Bali continues to draw attention, including ongoing government initiatives, further cementing the island’s dominance to the extent that many now worry about overtourism.
The Bali provincial administration on Sept. 7 had proposed a two-year moratorium on the construction of hotels, nightclubs and villas on the island, as it sought to deal with increased land conversion and conservation problems.
The aim was to improve regional planning and pursue quality tourism, Interim Bali governor Sang Made Mahendra Jaya said, as quoted by news agency Antara.
However, the central government has decided to push forward the development of a new airport in northern Bali.
The project was proposed in 2016, but was cut from the national strategic projects (PSN) list in 2022 by then-president Joko “Jokowi” Widodo amid a lack of political support.