The Investment Coordinating Board (BKPM) and the Directorate General of Immigration have strengthened their supervision of foreign investments (PMA) and foreign workers in Indonesia. This initiative aims to ensure that incoming investments contribute positively to the national economy and comply with legal requirements.
Enhanced Monitoring Through Post-Audit Mechanisms
BKPM’s Regional Director, Ady Soegiharto, emphasized that investment monitoring is conducted through post-audit evaluations to verify the actual economic impact of foreign investments. Business licensing and permits are now processed through the Online Single Submission (OSS) system, with stricter regulatory oversight to prevent fraud and ensure compliance with investment commitments.
“We conduct post-audits to ensure that investments genuinely add value to Indonesia. After Bali, Batam is the second city where we have intensified our oversight, and we plan to expand this effort to other regions,” Ady stated in a press conference at Hang Nadim International Airport, Batam on March 13, 2025, as reported by batamtoday.com.
Operation Wira Waspada Uncovers Fake Companies
In collaboration with Immigration, Operation Wira Waspada has exposed 12 foreign investment companies that are now facing the revocation of their Business Identification Numbers (NIB). These companies were found to be either fictitious, lacking the required investment threshold of USD 609,000, or operating outside their approved business scope.
“For example, a company listed in OSS with an address in Batam Center was found nonexistent during field inspections. Some companies also failed to meet the minimum investment requirement, while others engaged in unauthorized business activities,” Ady explained, as reported by antaranews.com.
Operation Wira Waspada, first implemented in Bali, has now expanded to Batam and will soon target Jakarta and surrounding areas. The initiative aims to eliminate fraudulent investments that do not benefit Indonesia’s economy.
13 Foreign Nationals Detained in Batam
During the operation, Immigration authorities detained 13 foreign nationals in Batam for illegally operating businesses or working without proper permits. Another 13 foreign nationals remain under investigation, with nine already having left Indonesia and four still within the country’s jurisdiction. Those who left will have their residency permits revoked.
Among the detained foreigners is an Austrian national, DB, who holds an Investor ITAS (limited stay permit) but allegedly set up a fake company to extend his stay without engaging in actual investment activities. Three Chinese nationals—JM, CC, and CK—were found working as laborers at PT Chuang Sheng Metal despite holding Investor ITAS, while four other Chinese nationals at PT Sun Gold Solar misused their visit permits to work illegally.
In addition, three Bangladeshi nationals—FR, SK, and SM—entered Indonesia without passing through official Immigration checkpoints, violating Article 113 of Law No. 6/2011 on Immigration. An Indian national, MT, is also under investigation for allegedly falsifying a limited stay permit.
Large-Scale Deportation in Bali
As part of its nationwide crackdown, earlier, Immigration has identified 520 foreign nationals in Bali who violated their stay permits under the guise of investor status. Many of them are linked to 267 foreign investment companies that have had their NIBs revoked since November 2024. These individuals are set for deportation and entry bans to prevent future violations.
Government Commitment to Strengthening Law Enforcement
Acting Director General of Immigration, Saffar M. Godam, stressed that Operation Wira Waspada demonstrates the government’s commitment to enforcing immigration laws and maintaining national order.
“This operation is designed to deter violations and ensure that foreign nationals in Indonesia adhere to the law. We will continue to tighten our monitoring to prevent unqualified individuals from exploiting investment schemes,” Godam stated.
Authorities also warn business guarantors that providing false information or failing to meet their legal obligations can result in severe penalties, including up to five years in prison and a fine of USD 30,487, as stipulated in Immigration Law No. 6/2011.
With this initiative, the government aims to ensure that only genuine, value-generating foreign investments contribute to Indonesia’s economic development while preventing immigration violations that could harm national security.
Source: antaranews.com, batamtoday.com, gokepri.com, suara.com
Photo Credit: via antaranews.com
