Ministry of Marine Affairs and Fisheries Take Action Against Foreign Nationals Operating Illegal Businesses in Indonesia’s Small Islands
The large number of unlicensed businesses run by foreign nationals in remote islands has made the Indonesian Ministry of Maritime Affairs and Fisheries furious.
On a previous occasion, the ministry had denied any involvement in the buying and selling of small and remote islands across Indonesia involving prospective foreign investors. However, they have since discovered that foreign nationals have frequently used these islands, such as Mentawai Island and Maratua Island, to set up businesses.
The Director of Marine Resources Supervision at the Ministry of Marine Affairs and Fisheries, Halid K. Jusuf, observed that the frequent pattern has been foreign nationals marrying local citizens or native Indonesians based on the island so that the former would be able to establish businesses under the latter’s name.
“There are various methods used, such as marrying local residents. Afterwards, they would build the business in the name of their spouse. When we trace the origin, it turns out to be a foreign investor,” Jusuf told the press on Tuesday, the 3rd of September.
Jusuf further emphasised that if such foreign nationals wish to establish businesses on small islands in Indonesia, they must obtain a permit from the Indonesian Ministry of Marine Affairs and Fisheries first and foremost. If these foreigners fail to do so, the ministry will not hesitate to freeze the business. Jusuf also added that, in certain cases, a degree of leniency might be in place. However, if, within the specified time, the foreigners still fail to obtain the necessary permit, the ministry will nonetheless impose administrative sanctions, seal the business, or even freeze its entire operations.
So far, the ministry has sealed two foreign-owned business operations that were caught existing without legal permits; both of which took place on Mentawai Island.
“If they complied with the recommended regulations, it wouldn’t have reached the point where the business was frozen [by the ministry],” Jusuf concluded.
Small and remote islands like Mentawai Island are not the only sites on which foreigners have been caught running businesses illegally in Indonesia. It was previously reported that many foreign nationals have been operating businesses in Bali without legal permits, such as vehicle rental services, hair and nail salons, beauty clinics, tattoo parlours, accessory shops, and yoga studios.
Source: indonesiaexpat.id
