From 500 Motorcycle Rental Businesses in Bali Owned by Foreigners, Only 5 Are Legally Licensed.
DetikBali reports that the Bali Provincial Government is concerned about the prevalence of motorcycle rental businesses in Bali suspected of being operated by foreign investors. Data compiled by the Bali Investment and One-Stop Integrated Services Agency (DPMPTSP) indicates that only five registered foreign-owned companies (PMA) hold proper licenses for motorcycle rental operations. Meanwhile, the actual number of motorcycle rental businesses with foreign investor involvement is suspected to be far higher.
I Ketut Sukra Negara, Head of the Bali DPMPTSP, said he suspects that the number of foreign-owned motorcycle rental businesses in Bali might reach as many as 400 to 500 companies.
”Motorcycle rental is the most prevalent sector. There are no more than five licensed foreign-owned motorcycle rental businesses in Bali, yet in practice, there could be as many as 400 to 500,” said Sukra Negara on Thursday. 01 October 2026.
According to Sukra Negara, the problem relates to a suspected influx of foreign capital into the micro, small, and medium enterprise (MSME) sector. Motorcycle rental is only one of the sectors the Provincial Administration is looking at. The government is also scrutinizing unauthorized foreign investments in beauty salons, photography services, and retail trade.
When Sukra Negara was asked, ”How do they do it?” He replied: “They collaborate with locals/”
Sukra Negara said a similar pattern has been observed in other business sectors that, by regulation, are intended to be exclusively limited to local entrepreneurs.
Nominee Business Ownership Schemes
In addition to business sectors with unauthorized foreign investment, the Bali DPMPTSP is also highlighting the suspected use of “nominee schemes” — where the names of Indonesian citizens are used to feign legal business ownership. In reality, foreign nationals control and own these businesses.
”There is a pattern of systemic nominee practice involving the use of Indonesian citizens’ names as shareholders on behalf of foreign nationals,” Sukra Negara said. According to him, this issue represents one of the challenges he confronts in overseeing foreign investment in Bali.
Sukra Negara also revealed companies operating in Bali as “virtual offices.” Investigations by the Bali Investment and One-Stop Integrated Service Agency (DPMPTSP) found that dozens of companies are using a single office accommodation address.
He cited, as an example, the discovery of a shophouse associated with about 28 different Business Identification Numbers (NIB). Similar findings were reported at several other locations.
”We have encountered this in Negara, Jembrana, and in businesses along the Ngurah Rai Bypass; there were offices with more than 22 NIBs registered to them,” he said.
Sukra Negara noted that these virtual offices become a concern when a company is licensed for a specific activity. Yet, its actual operations on the ground appear to target an entirely different sector of business activity.
He said these findings are part of the investment oversight conducted by the Bali Provincial Government in collaboration with other relevant agencies.
Regarding motorcycle rental businesses, Sukra Negara said this shows why realizing foreign investment requires ongoing monitoring of business activities after formal investment licenses are issued.
”They operate in the virtual office sector, but in practice—I am convinced—they are actually venturing into illegal territory or engaging in practices that encroach upon the MSME sector, such as the aforementioned motorcycle rentals,” he said.
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