We might have just found the next big thing in Indonesia — a tropical hideaway, Bali. Other than its vibrant atmosphere, breathtaking ocean views, and delectable cuisines, it has now become one of the thriving business locations, where people from all the around the world choose to start a business in Indonesia.
Major Business Activities in Bali
Many foreigners travel to this part of the world and many turned once hobbies into promising businesses:
- Food and beverages (e.g. restaurants, bars)
- Spiritual health, wellnessand holistic services (e.g. health spas)
- Recreation and leisure (e.g. yoga, diving)
- Clothing design and distribution
- Cosmetics trading and sales
Watch the video below about starting a business in Bali in 2020:
Best Aspects of Doing Business in Bali
With all the Balinese best qualities, it is easy to see why Bali has become the next big thing and also a place to make entrepreneur’s ideas and dreams come true.
# Combine A Paradise for Mind with A Productive Business
We are going to state the obvious. Bali’s friendly people, incredibly beautiful and charming ambient allows business startups to live in a breathtaking part of the world, and at the same time maximize their profits.
# Booming Tourism and GDP Growth
Indonesia has one of the highest GDP and the fastest growing economy in the world. The Balinese economy is largely based on tourism and agriculture with the highest GDP outputs. 2.3 million foreign tourists visited Bali in the first 5 months in 2017; a target of 5.5 million tourists is estimated to visit Bali up to December 2017. However, number of visitors coming to Bali for holidays is much higher as domestic tourists are not included.
In 2018, the number of international tourists visiting Bali reached 6 million. In 2019, the number was even higher as the number of foreign tourists reached 6,3 million, an increase by 3.6%, according to a report from Badan Pusat Statistik Provinsi Bali.
# Lower Overheads
The living costs are relatively low in Bali compared to most places in the world. Therefore, the great thing about starting a business here is that you only need a minimum amount of capital. The low living costs also help keep the operational costs low. The average cost of living in Bali is $1,060 per month; it covers accommodation, food, office, and entertainment — which is almost unattainable in the Western part of the world.
# Collaborative Co-Working Environment
These recent years have surely been wonderful for Bali due to its booming nomadic and location-independent businesses. Now, Bali has more co-working spaces than ever. Most foreigners see this business culture in Bali as a gem for doing business in Indonesia. It provides foreigners with a competitive new-born, inspiring, and collaborative business opportunities.
# Flourishing IT Industry
It is understandable that IT industryis growing rapidly. Younger generations now rely heavily on internet and virtual officeas the main utilities in Bali to oversee and perform their online businesses. Thereby, telecommunication and multimedia providers in Bali continue taking part in the development of technology in the country, especially improving the internet speed and services. The government aims to put Bali on the map of Asia’s most popular business startup hub.
Bali is Indonesia
Even though Bali has become one of the most prominent business hubs in Southeast Asia, still kept in mind that Bali is an Indonesian island where businesses should follow every regulation.
A Negative Investment List is one of the regulations which you should check at first. As it states the maximum allowed foreign ownership in your company, the Negative Investment List might be a reason that will change your mind, and you will establish a local companyin Bali (PT) instead of a foreign-ownedone (PT PMA).
In case, your business falls into a field where renting or buying a property is a must, do not forget to look into property regulations as well. The property, which you are thinking of, might have a license which is not allowed to be held by a foreign national.
Final Note on Doing Business in Bali
Successful business startup in Bali can see the big picture and believe that proper market research, market entry and business development strategy, can make a difference to start a business in Bali. The more in-depth market knowledge, understanding, and third-party can help you when starting out in this seemingly daunting task, the better — a one-stop, end-to-end solutionexecuted with precise thrust.
Send us your inquiries now and we will be happy to assist.