Bali's Motorbike Rental Business Boom: Most Foreign-Run Shops Operating Without Proper Licenses

Bali's Investment and One-Stop Integrated Services Agency (DPMPTSP) said on October 2, 2026, that motorbike rental businesses run by foreign nationals have proliferated rapidly across Bali. According to agency data, fewer than five such businesses hold proper foreign investment (PMA) licenses, even though the actual number operating is estimated at 400 to 500.

Agency head I Ketut Sukra Negara explained that one common practice involves companies obtaining business licenses under a classification that does not match their actual activity. Some PMA companies register virtual offices as their business address while actually operating motorbike rentals, as well as salons, photography services, retail trade, and surfboard rentals—sectors typically reserved for small and medium local enterprises (UMKM).

Officials also found cases where a single virtual office address was linked to as many as 28 separate business identification numbers (NIB), registered under multiple PT (limited liability company) names, in locations such as Negara in Jembrana and along Bypass Ngurah Rai Road. Such patterns make it difficult for authorities to track actual business activity against what is officially registered.

Additional issues identified include incomplete licensing documentation and suspected use of Indonesian citizens as nominee shareholders to mask foreign ownership. The agency says it will step up monitoring of investment practices that do not match registered business classifications, including foreign-run operations entering sectors meant for small local businesses.