Beware of Deportation! Don't Dare Before Understanding the Rules of Foreign Nationals Opening a Business in Bali Terbaru

Illustration of the rules for opening businesses in Bali (antaranews)

YOGYAKARTA - Recently, the public has begun to highlight the phenomenon of the WNA rule opening businesses in Bali which is often violated through illegal business practices. In fact, the government has provided a safe official channel so that foreign investment can make a positive contribution.

Proper legality is not just a matter of permits, but about creating healthy competition and ensuring fair tax compliance. So, if you have a foreign partner, make sure they follow the legal procedures so that the business is not threatened with closure.

WNA rules to open businesses in Bali are legal

The proliferation of news about foreigners who open businesses without permits (illegal) triggers tightening supervision by the Immigration Service and local governments. Reported from the Instagram account @satvika.consulting, here are some things that need to be prepared by following the rules for the safety of your capital:

Form of Permitted Company (PT PMA)

Based on the latest rules, foreign nationals are prohibited from running individual businesses or entering the UMKM category. The only legal way is to establish a PT PMA (Foreign Investment).

So, in a simple way, this legal entity allows foreigners to become shareholders and directors legally in the eyes of Indonesian law.

There are Minimum Capital Requirements and Investment

Don't get caught up with old information. Currently, the capital requirement for PT PMA in Indonesia is a minimum of IDR 10 billion (excluding land and buildings). Of this amount, the minimum capital to be deposited is 25% or IDR 2.5 billion.

This rule was made to ensure that foreign investors who enter actually bring in large capital to move the economy, not just take a share of the local people's micro-business.

For investors from the United States, the capital obligation of IDR 10 billion is equivalent to a range of USD 620,000. This figure is equivalent to the price of one medium-sized house in Los Angeles or franchise capital in the US.

Even though it looks big, investors are only required to deposit a minimum initial capital of IDR 2.5 billion (approximately USD 155,000). This amount is very competitive for US entrepreneurs who want to legally expand in Bali.

Read also the article which discusses This is the Real Reason Why Food Courts Are Always Made on the Top Floor of Malls

By following this PT PMA route, foreign nationals get full legal security, 100% business ownership, and KITAS investor facilities without having to worry about illegal business risks.

Positive Investment List (DPI)

It turns out that foreigners cannot just choose a business. There are sectors that are 100% open to foreigners, but there are also closed ones or require partnerships with local entrepreneurs. For this reason, checking the Positive Investment List (DPI) is crucial before you start renting land or building properties in Bali.

Residence and Work Permits (KITAS)

Establishing a legal business gives foreigners the right to apply for KITAS investors. With this permit, foreigners can live and oversee the operation of their business in Bali without fear of immigration raids.

In addition, the existence of this legality also provides legal protection if there is a dispute later.

Migration to OSS Risk-Based Approach System

All permits are now carried out through the risk-based Online Single Submission (OSS) system. Foreign nationals must have a Business Identification Number (NIB) and additional permits according to the level of business risk.

This system makes it easier for the government to monitor the operations of foreign companies in the field.

Just a safe investment tip in Bali is never tempted to use a nominee system (borrow the name of a local resident) because it is legally very risky and can make you lose assets.

If you have a family or foreign national colleagues who want to do business, then direct them to take care of the permit through a trusted legal consultant from the beginning. Legal investment is a calm investment.

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