Jakarta, Indonesia Sentinel — Silmy Karim, Director General of Immigration at Indonesia’s Ministry of Law and Human Rights, recently revealed that a significant number of foreign nationals (WNA) own micro or small businesses in Bali. This discovery came during field operations conducted by immigration authorities.
“When the team conducted operations, we found that they have all the required permits, including a Business Identification Number (NIB) and licenses for businesses like salons,” said Silmy during the Grand Launching of the Autogate at the Immigration Checkpoint at I Gusti Ngurah Rai Airport in Nusa Dua, Bali, on Tuesday, October 1.
Upon investigating the issue, Silmy checked regulations from Indonesia’s Investment Coordinating Board (BKPM). He found that under current rules, foreign investments of Rp 1 billion (approximately USD 65,000) fall into the micro enterprise category.
Due to these regulations, immigration authorities have faced challenges in addressing the situation. “I checked BKPM’s regulations, and investments of at least Rp 1 billion are categorized as micro enterprises, making it difficult for us to take further action. Therefore, we’ve been coordinating with the Minister of Investment, who previously was Mr. Bahlil,” he explained.
Silmy expressed hope that the government would revise these regulations. “I’ve conveyed that if the threshold for foreign investment (PMA) is Rp 1 billion, it falls into the micro enterprise category. As a result, many micro businesses in Bali are owned by foreigners. The investment threshold should be increased to at least IDR 10 billion so it falls under the medium enterprise category,” he suggested.
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In addition to raising the minimum investment for foreign nationals in the micro-business sector, Silmy also proposed halting the easy issuance of business permits to prevent foreign-owned small businesses from stifling local entrepreneurs.
“When foreigners apply to set up a company with a notary, they should not be granted permits so easily. This is part of ensuring legal certainty. Some may think immigration is turning a blind eye, but these individuals have the necessary permits. This issue requires discussion among immigration, the Ministry of Investment, and local governments to ensure we all work together in preserving Bali,” he added.
Silmy believes that increasing the PMA threshold to Rp 10 billion for foreigners wishing to establish businesses in Bali will reduce foreign ownership of micro enterprises.
“There is a demand from the Balinese community that micro, small, and medium enterprises should be owned by locals or Indonesian citizens. However, when we conduct inspections, we find that these foreigners possess NIBs and deeds of incorporation for their companies,” he noted.
(Raidi/Agung)
