| Bali is back. The most recent tourism traffic numbers | | | | emerging-market locations, there is a real risk of being |
| (up 13 percent in 2009) confirm what the worsening | | | | "ripped off." The amounts of money involved are |
| traffic congestion over the last year has subtly hinted | | | | significant and can often literally constitute someone's |
| at. | | | | lifesavings. Therefore, one needs to handle business |
| Not only are more tourists coming to Bali, but it is | | | | affairs with caution from the outset by seeking |
| attracting visitors from a wider range of countries than | | | | professional advice from qualified professionals and |
| ever before. Bali's durability as a tourist destination is | | | | avoid involving your "newfound friends." |
| evidenced by its transition from being named in some | | | | Friends are great and we all need them, but someone |
| countries' travel warnings list to its recent inclusion on | | | | you meet briefly a few times communicating in pidgin |
| Lonely Planet's top 10 destinations to visit in 2010. | | | | English doesn't constitute a friend under most peoples' |
| This increase in traffic has fuelled a property and | | | | definition. |
| building boom, especially in villas targeted at visitors | | | | Neither does it mean someone is honest if he shares |
| who have been ensnared by Bali's undeniable charms | | | | his personal life story with you or brings you to meet |
| and opted to stay. | | | | his family in the village. So the message here is to |
| However, the transition from tourist to resident often | | | | enjoy the charm and hospitality of Bali by all means - |
| doesn't go as smoothly as anticipated, and many | | | | that is in large part what attracts us to Indonesia in the |
| experience numerous headaches in connection with | | | | first place - but be prudent when parting with your |
| buying properties or setting up businesses here. This | | | | hard-earned sheckles. |
| fact was highlighted recently when the principal of one | | | | Before investing in Bali and seeking professional advice, |
| of Bali's most prominent expat service agencies | | | | it is useful to have a basic understanding of |
| received a prison sentence for scamming foreign | | | | government structures here and how the legal system |
| clients. This serves as a timely reminder that it may be | | | | may differ from that in one's home country. |
| an opportune time to examine how some of these | | | | If we take the island of Bali, which is one of 33 |
| dodgy deals can be avoided. | | | | provinces in Indonesia, the highest government official |
| Many who have lived here for some time have | | | | is the governor. The present governor was elected |
| probably been the victims of one scam or another, or | | | | last year and previously held the position of police chief |
| at least know someone who has. Sit on a high stool in | | | | when the first Bali bombing occurred. |
| any expat bar in Sanur, Kuta or elsewhere in Bali and it | | | | Provinces (which are further subdivided into regencies) |
| won't be long until you hear the story of someone who | | | | have their own local governments and legislative |
| is in Immigration lock-up, has been deported or can't | | | | bodies. Since regional autonomy laws were passed in |
| find the partner who owns his business or home. | | | | 1999, provinces and regencies have extensive power |
| Hearing such horror stories can often create a sense | | | | over their own affairs. However foreign policy, |
| of paranoia and put people off settling or investing | | | | defence (including armed forces and national police), |
| here. However, the origin of these stories can often be | | | | the legal system and monetary policy are still under |
| tied back to ignoring the basic caveat emptor rule or | | | | control of the national government. |
| failing to do the basics that one would never neglect in | | | | Since 2005, heads of local government (governors, |
| their own home country. | | | | regents and mayors) have been directly elected by |
| Typical examples of how these tales of woe occur | | | | popular election. There are 349 regencies in Indonesia. |
| often begin by relying on unqualified advisors. So often | | | | Foreign investors wishing to set up large projects |
| you hear the line, "My mate knows the score here; he | | | | would be well advised to get to know their regent |
| has been here for years; he'll put you right." Although | | | | (bupati) and enlist their support for projects within their |
| such offers of free wisdom and advice are often well | | | | constituency before proceeding. Denpasar city has a |
| intentioned. They can also be dead wrong and send | | | | mayor, also elected, with similar powers to a regent. |
| people off on fruitless tangents when what they | | | | Under the regent and mayor are camat and lurah, |
| should be doing is seeking qualified professional advice | | | | respectively, who are government-appointed civil |
| from the outset. | | | | servants and next in line in terms of authority but with |
| This can then, in turn, lead to other basic due diligence | | | | whom expats will rarely need to interact. |
| not being completed and mistakes being made that | | | | The government office with which most foreigners |
| can be difficult or impossible to reverse later on. | | | | living in Bali would have interaction with is that of the |
| For example, would you buy a house in your country | | | | chief of village (kepala desa), better known as banjar |
| without first checking if there was a right of way? | | | | in Bali. |
| Why do so many people do so in Bali and feel ripped | | | | The banjar has authority over the local people in |
| off when the penny drops? Would you put all your | | | | accordance with acknowledged local traditions and is |
| money in the bank account of a person you hardly | | | | elected by popular vote. Every foreigner living in Bali |
| know because you can't figure out how to open an | | | | should register with his/her banjar. Any issues |
| account in your own name? Then they are surprised | | | | regarding security or other community affairs should |
| when this "trusted friend" runs off to Java with the lot. | | | | be discussed with the banjar. I would recommend that |
| Another common issue is problems associated with | | | | foreigners become familiar with personnel in the banjar |
| immigration and work visas or tax status where | | | | office so if a problem ever arises there is already a |
| people who have worked here for many years | | | | familiar relationship there to build on. Personally I have |
| without the proper paperwork end up suddenly facing | | | | found my banjar in Semawang, Sanur, to be very |
| either large tax bills or deportation. | | | | helpful in every way. Your legal or professional advisor |
| Of course when a foreigner relocates to Bali, whether | | | | should be able to introduce you to the local banjar. |
| it is to retire or open a business, similar to many | | | | |