"We have formed a cross-agency special team to conduct a comprehensive audit of tourism business licenses in Bali," Koster said in a statement issued in Jakarta on Sunday.
The team comprises various elements, including regional heads, relevant agencies, and tourism business associations.
The team's formation was prompted by mounting public complaints from local small businesses regarding the increasing dominance of the tourism sector by foreigners, which has progressively marginalized local communities.
The Bali Provincial Administration has since reviewed its existing licensing system and regulations, uncovering widespread cases of illegal businesses operated by foreigners.
Many of these operations, it was found, exploit loopholes in the Online Single Submission (OSS) business licensing platform.
Governor Koster highlighted that the current system allows foreign investors to dominate strategic sectors, even at the micro level, such as vehicle rentals and accommodation services.
"Bali must not become a free market that ends up destroying its own people," Koster emphasized.
He explained, "In Badung district alone, around 400 permits for car rentals and travel agencies are held by foreigners. Many of them do not even have offices or live in Bali, yet they are allowed to operate."
Therefore, the newly formed team will work on the ground to prevent long-term economic damage to Bali’s tourism industry.
According to the governor, these illegal business practices not only violate business ethics but also deepen economic disparities and harm the local economy.
He stated that he will issue a regulation to permit joint operations involving the Public Order and Security Agency (Satpol PP) and the Bali Regional Police.
He also proposed a new policy that would require all travel agencies to register with local tourism associations.
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Translator: Muliantari, Kenzu
Editor: Aditya Eko Sigit Wicaksono
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