Eyewitness | The alleged labor violations case in the Labuansait area of ??Jalan Labuansait, South Kuta, Badung Regency, Bali, has now entered a new, more complex phase. No longer simply a matter of employment relations, the controversy is beginning to point to allegations of cross-sectoral violations, ranging from business legality, ownership schemes, to the immigration status of the foreign parties involved.
The Secretary of ARUN Bali, A.A. Gede Agung Aryawan, S.T., firmly stated that the latest findings actually indicate unhealthy practices in business management involving foreign parties.
He emphasized to the media on Saturday (April 4, 2026) that any form of foreign national involvement in business activities in Indonesia must comply with the Foreign Investment (PMA) scheme, which has clear and strict regulations.
“If a foreigner is involved in a business, it can’t be done haphazardly. It must go through a PMA (Foreign Investment Company), with a clear structure, and complete permits. There can be no ambiguities,” he stressed.
However, in this case, he saw strong indications that the practice was not being implemented properly. One of the things he highlighted was the possible use of a nominee scheme, where the name of a local citizen is used to conceal foreign ownership.
“This is key. If there really is a nominee, it means there is an attempt to circumvent the regulations. That’s a serious violation,” he said.
He explained that this pattern often occurs in areas dominated by expatriates, where foreign business ownership is “disguised” to appear administratively legal, even though, in substance, it doesn’t comply with regulations.
“Usually, it’s localized. The name is used by a local person, but control remains with the foreigner. This must be uncovered,” he said.
He also highlighted other alleged activities in the same location that lack legal clarity. One such activity is a rehabilitation program, which is said to involve foreign nationals with various problematic backgrounds.
“If rehabilitation activities are indeed taking place, they must be clear. There must be a legal entity, operational permits, and supervision. They can’t just operate,” he said.
According to him, the existence of such activities actually adds to the urgency of conducting a thorough investigation, as it concerns health, social, and security aspects.
“This isn’t just a regular business. This has entered a different realm. Everything must be checked,” he stressed.
He also questioned the immigration status of the foreign parties suspected of involvement. He believes that clarity regarding visas and work permits is a crucial factor that cannot be ignored.
“We have to check their visas. Are they in line with their activities? If they aren’t, that’s a violation,” he said.
He noted that many violations in Bali stem from a mismatch between residence permits and work activities.
“This happens frequently. People enter as tourists, but work. Or they have a specific permit, but their activities are different. This must be addressed,” he said.
He also highlighted the oddity of claims of ownership of a business location, even though the information indicates the premises have changed hands.
“If it’s no longer his, why do you still claim to own it? This must be explained. There must be no manipulation,” he said.
According to him, this further strengthens the suspicion of indirect control through a non-transparent scheme.
“The common thread is the nominee. That’s what must be proven,” he stressed.
Amidst these allegations, he emphasized that the workers remain the most disadvantaged. They are victims of an unclear system, from unilateral policies to unauthorized termination of employment.
“The primary victims remain the workers. They lose their rights, they lose certainty,” he said.
He also highlighted procedural aspects of the layoffs, which he deemed were not properly implemented, including the lack of a proper notice period.
“There should be a minimum of 14 days’ notice. If that is not given, it means there is a violation of workers’ rights,” he explained.
Given the various indications that have emerged, A.A. Gede Agung Aryawan emphasized that this case must be investigated thoroughly and must not stop at just one aspect.
“This must be uncovered from upstream to downstream. From the company, to the permits, to the individuals involved,” he stressed.
He hopes law enforcement officials and relevant agencies will immediately take concrete steps to ensure legal certainty and prevent similar cases from recurring in the future.
“Don’t let this become a bad example. Bali must remain a place of order and discipline,” he concluded.
