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SG2018

Hi there,

I'm just wondering what it's like to set up a small business in Nusa Penida?

I have done my home work about all the legal stuff but I can't find much about anyone who's really done it?

Not looking to get knocked down like a lot of posts on here, just asking a simple innocent question!

Thanks :)

Fred

Hi, and welcome to the forum.
I have never had the pleasure to visit that island so this is a bit of a guess, thus an outline only and prone to errors.

The first is the legal side, that forcing you to invest a lot of cash in a business on a small island that is a lesser known tourist destination and has a small local population. You seem aware of the large investment required for a foreigner to set up a legal entity here but it could be hard work to recover the investment unless you have a niche market of some sort.
There are plenty of hotels and dive centres established but occupancy rates appear to be around 60% much of the time (out of date numbers so you need to recheck to get up to date info), that suggesting the market is saturated.
If that sector is overdeveloped, it's very possible the other market areas are similarly so.

The required investment is a lot of cash to lose if it all goes pear shaped so you're going to have a lot of very serious research to do before you commit.

Ubudian

Nusa Penida?  May I ask why you are thinking of that location? 

"...but I can't find much about anyone who's really done it?"

After 19 years of 24/7 living on Bali, the next expat I run into who has set up a business in NP will be the first.  That being said, there must be some expat businesses there (dive shops, small hotels) so your best bet might be to spend some time there and consult those expats who have done this already.   

I'm not trying to rain on your parade, but as difficult as it is to start up a new business in Bali...why take risks which may not be needed?

Anyway...good luck to you!

ora bora

Hello,

I am trying to do the same, I want to open  small restaurant there.
so we can maybe stay in touch and share the info we get if you want.
I will be back there in september and I will check with the local authorities for few infos

cheers

Raphael

Fred

ora bora wrote:

Hello,

I am trying to do the same, I want to open  small restaurant there.


You can't unless you go with the minimum investment and follow all the other rules.
A small restaurant is unlikely to do so.

As the rules are designed to stop foreigners owning small businesses, your chances of being reported, arrested, then deported are pretty high.

challiou rachid

can open bath legally?

Fred

Much of Indonesian law regarding immigration and foreigners working here is designed to protect jobs for Indonesians.
The upshot is easy enough:
No foreigner can legally do any unskilled work of any sort
No foreigner can legally open any sort of small business.

A foreigner's spouse opening a small business is fine, and the foreigner working out of sight in it is generally ignored unless they upset someone.

challiou rachid

can open atas nama istrey?

ora bora

hello Fred,

is that a rule only for Nusa Penida or whole Indonesia?
because here in Gili, as long s you have a local partner for the buisness you are free to go

and as I said, we don't plan to open an insanly huge place, it would be like a ten tables restaurant.
it's already few buisness there own by western people.

Fred

If the partner/spouse is a local you can open whatever you want in their name but you can't legally work in it without a work permit.
The local immigration officer might very well turn a blind eye if it suits them, but that doesn't mean it isn't illegal and you aren't taking a risk.
That changes if you're a KITAP holder working informally in your spouse's business; a KITAS holder commonly being ignored in such an arrangement because, much as it's illegal, immigration aren't monsters or stupid, and they know you have too earn an honest buck to keep your family.
The last paragraph changes for KITAS holders if you upset someone.

rarassita

I have visited Nusa Penida last year, and the owner of my hotel was a foreigner. so.... maybe it is still possible to open a business there

Fred

If you follow the rules, it can be done legally.

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