What officials found
The pattern was described by I Ketut Sukra Negara, head of Bali's DPMPTSP, the provincial investment and one-stop licensing office. He said foreign-owned companies, known as PMA, register under KBLI 6811. KBLI is Indonesia's business classification system, and code 6811 covers real estate activities.
Once construction is finished, the properties start operating as short-term rental villas. The official told detikBali that these companies convert completed real estate into villas.
Why villas are off limits for PMA
Villa accommodation is reserved for UMKM, Indonesia's micro, small and medium businesses. A foreign-owned company cannot use that code. Renting a unit nightly under a 6811 licence therefore does not match the permit that was issued.
Officials admit that monitoring businesses after a licence is granted is difficult. They now say activities must be checked against the permits behind them.
Bikes, nominees and virtual offices
On the same day detikBali published further figures from the office. No more than five PMA hold a licence for motorbike rental, yet DPMPTSP estimates that 400 to 500 such outlets operate. The official also pointed to nominee schemes, where an Indonesian citizen appears on paper while a foreigner runs the business.
Registered addresses are another issue. One unit in Negara hosted about 28 NIB business numbers, and one address along Bypass Ngurah Rai had more than 22.
Context
In the first half of 2026 Bali attracted Rp 23.77 trillion of investment against a full-year target of Rp 47.93 trillion. PMA accounted for about Rp 14.9 trillion. Hotels and restaurants led with roughly Rp 9 trillion.