Bali, known as the "Island of the Gods," has long attracted not only travelers but also investors from around the world. But why are more and more people choosing this island for their financial plans? In this article, we’ll explore the key reasons why investing in Bali is so attractive, what risks to consider, and what strategies can help make your investment successful.
When talking about Bali’s popularity, the main reason becomes clear — a unique combination of natural beauty, cultural depth, and spiritual atmosphere. Let’s take a closer look at these features.
Reason 1. Nature and climate
Bali’s nature is rich and diverse. The island offers stunning beaches with both white and black volcanic sand, mountains and active volcanoes for trekking, lush jungles, powerful waterfalls, and the iconic rice terraces. Thanks to its year-round tropical climate, Bali is appealing in both winter and summer.
Reason 2. Culture
Balinese culture is truly unique — from traditional dances and music to ceremonies, rituals, and local art. The island practices Balinese Hinduism, and temples here are countless. Bali’s spiritual energy has also made it a global center for yoga, meditation, and retreats — especially in Ubud, which offers a peaceful atmosphere for self-exploration.
Reason 3. Tourism infrastructure
Bali offers accommodation for every budget — from simple bungalows to luxury villas. Restaurants and cafés serve Indonesian, international, vegan, and vegetarian cuisine. For tourists, there’s a wide range of activities: rafting, surfing, diving, trekking, nature parks, sightseeing tours, spas, and more.
Reason 4. Quality of life
Living in Bali can be affordable, especially for freelancers or remote workers from countries with higher living costs. Many people find peace here, thanks to the welcoming locals and laid-back lifestyle. Bali is also a magnet for creatives, and it’s easy to find a like-minded community.
Reason 5. Global reputation
Bali has gained prestige through media: travel vloggers on YouTube post hour-long videos about the island, Instagram is full of stunning Bali content, celebrities vacation or live here, and even Hollywood films are shot on the island — for example, Eat, Pray, Love (2010).
Bali offers a wide range of investment opportunities — from luxury real estate to startups in the tourism sector. One of the main reasons investors choose to start a business in Bali is the fast return on successful investments.
1. A steady stream of tourists
Millions of visitors come to Bali each year, and this number continues to grow. With this constant influx comes consistent demand for:
✓ rental properties
✓ restaurants and cafés
✓ tourist activities and entertainment
✓ souvenirs
✓ beauty and wellness services
✓ vehicle rentals
✓ services for digital nomads
All of this creates reliable income for business owners and investors.
2. Low operating costs
Labor and service costs in Bali are significantly lower than in high-income countries, making it more affordable and profitable to run a business — whether it’s a restaurant, hotel, or service company.
3. Infrastructure development
The government is actively investing in improving Bali’s infrastructure — roads, airports, and tourism zones. Better infrastructure means easier access to key areas and a steady rise in property values.
4. Growth in premium tourism
Bali is attracting more wealthy travelers who are willing to pay for premium services — luxury villas, private tours, fine dining, and exclusive clubs. This accelerates the return on investment.
Although Bali is already a well-developed and popular destination, its growth potential remains high. Here’s why:
• Tourist numbers continue to increase, and more foreigners are choosing to live in Bali long-term or work remotely. This drives demand for real estate, coworking spaces, food products, services, and more.
• Indonesia is actively promoting the "10 New Balis" program, aimed at increasing tourism and creating new investment opportunities. Bali remains the flagship destination of this program, ensuring ongoing investor interest.
• The Indonesian economy shows stable growth. The government is creating favorable conditions for foreign investors — offering tax benefits and support for business registration in Indonesia. Regulations are becoming more transparent, simplifying land and property acquisition.
So if you’re planning to open a business in Bali, you can count on high demand, strong income potential, and growing support from the island’s expanding infrastructure and economy.
Investing in Bali can be rewarding, but it requires caution and awareness. Here are some important things to consider:
1. Legal restrictions for foreigners
Foreigners in Bali (and Indonesia in general) cannot directly own land. However, opening a foreign-owned company (PT PMA) provides legal ways to control land, though the process can be complex. Professional assistance is highly recommended.
2. High competition
Bali’s tourism market is crowded — with an oversupply of hotels, villas, and restaurants. This can reduce profit margins. Still, with high quality and a unique concept, your business can stand out and be successful.
3. Risk of fraud
Investing in Bali, especially in real estate or business, comes with certain risks. Common issues include:
• Misleading property listings — Properties may be sold without valid documents or with forged ownership papers. In some cases, land is sold without the actual owner’s permission or is part of a legal dispute.
• Lack of transparency — Working with unreliable intermediaries can lead to inflated prices or purchasing a property that doesn’t match what was promised.
• Nominee ownership schemes — Previously common among foreigners, these schemes involve registering property in the name of a local citizen. But Indonesian law does not recognize such private agreements. If conflict arises, you have no legal claim to the property, and the risks are very high.
In conclusion, investing in Bali can be a profitable and exciting opportunity — if you take a smart and informed approach. Success depends on thorough preparation and careful risk assessment.
If you're ready to start a business in Bali, our team at Good Luck Group can guide you through company registration, opening a bank account, and achieving your business goals in Indonesia. Reach out to us to learn more!
