Bali's Motorcycle Rental Industry Rife with Foreign Ownership

Denpasar, Bali, Hundreds of motorcycle rental businesses operating in Bali are suspected of being backed by foreign investment, according to provincial investment authorities. Only a handful of foreign-owned companies are officially licensed to operate in the sector, with some officials suspecting the actual number could be much higher.

The Bali Investment and One-Stop Integrated Services Agency, or DPMPTSP, said no more than five foreign investment companies, known locally as PMA firms, currently hold permits for motorcycle rental businesses. However, the number of motorcycle rental operations suspected of involving foreign capital could reach between 400 and 500, according to DPMPTSP Bali chief I Ketut Sukra Negara.

‘Motorcycle rentals are the most widespread. There are no more than five PMA motorcycle rental businesses with permits in Bali, but in practice there could be 400 to 500,’ Sukra Negara said on October 1.

Officials are also examining suspected nominee arrangements, in which Indonesian citizens are formally listed as shareholders while a business is allegedly controlled by foreign nationals. The practice has become one of the challenges facing Bali authorities in monitoring foreign investment and determining who ultimately controls businesses operating on the island.

The issue is part of a broader concern over foreign investment entering business sectors traditionally dominated by Bali’s micro, small and medium-sized enterprises. Other sectors under scrutiny include salons, photography businesses, and retail operations.

Denpasar Immigration is also investigating two foreign nationals suspected of providing unauthorized motorcycle riding lessons to other foreigners in Bali. The agency has launched an inquiry into their activities.