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Real estate news in Indonesia

Bali cracks down on visa violations—What foreign property investors must know

kitas visa application in indonesia

Bali is intensifying its efforts to address visa abuse and passport violations by implementing stricter measures that may affect foreigners looking to invest in the island’s real estate market. The provincial government is targeting violations such as overstaying visas, misusing visa categories, and even refusing entry to tourists with minor passport damage. This zero-tolerance approach is intended to uphold immigration laws and ensure order, which is important for anyone considering Bali as a destination for investment or a vacation home.

Misuse of pre-investment visas under scrutiny

The government is focusing on addressing the misuse of pre-investment visas, which allow foreigners to stay in Indonesia for up to 180 days at a time over a two-year period for specific business activities related to starting a business. There are concerns that some individuals are abusing this visa category to live long-term in Bali without meeting the strict criteria required for other long-term visas such as KITAS, KITAP, second home visas, or the new golden visa categories.

Government plans to tighten visa conditions

In response to these concerns, the Bali Provincial Government has announced plans to tighten the conditions for granting pre-investment and investment visas. This initiative follows the recent deportation of several foreigners who violated laws while on investment and tourist visas. The government is fast-tracking this policy change to prevent further visa abuse, which they believe could harm Bali’s tourism industry and its reputation as a desirable location for foreign investment.

Dewa Made Indra, the Bali Regional Secretary, emphasized the importance of implementing stricter verification processes. He stated, “We always recommend that the verification of research on passports, visas, or visiting visas be more stringent to prevent issues, as this serves as the initial filter.” The objective is to guarantee that only those who meet the legal requirements are granted visas, thus upholding the integrity of the immigration system.

Authorities seek stricter verification and enforcement

High-ranking government officials have submitted formal complaints to central authorities, calling for more careful and selective visa approval processes. The Minister of Law and Human Rights, Supratman Andi Agtas, stated, “We have requested supervision regarding the presence of foreign citizens with problematic immigration documents.” The focus is on preventing illegal activities by foreigners and ensuring that investments contribute positively to Bali’s economy without causing harm.

Immigration teams are dedicated to maintaining a zero-tolerance approach. Gede Duwita, Head of the Denpasar Immigration Detention Center, stated that anyone who violates immigration laws will face appropriate consequences, including deportation. With around 200,000 foreigners residing in Bali on long-stay visas, the authorities are vigilant in monitoring compliance.

Emphasis on appropriate visas for tourists and investors

Despite the crackdown, authorities highlight that the 30-day visa on arrival remains the most suitable option for most holidaymakers and short-term visitors to Bali. This visa costs IDR 500,000 ($32.50) and can be extended once for an additional 30 days, allowing tourists to enjoy their stay without legal complications.

If you are considering investing in Bali real estate or planning to live there long-term, it is important to strictly follow the visa regulations. Understanding the right visa category for your specific purpose is crucial. Misusing visas can lead to legal consequences and may also put your investment and future plans in Bali at risk.

What this crackdown means for property investors

The stricter enforcement of visa regulations is a reminder for foreign investors to be thorough when considering property investment in Bali. It is now more important than ever to ensure compliance with all immigration laws. Before making any commitments, potential investors should seek advice from legal experts who are knowledgeable about Indonesian immigration and property laws.

To continue benefiting from investing in Bali’s growing real estate market, foreigners should stay informed and follow the regulations. The government’s efforts are focused on preserving the island’s integrity and appeal, which ultimately safeguards the interests of legitimate investors and residents.

Your guide to buying property in Indonesia
Written by Matt Timmermans

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