Best business opportunities in Bali : a complete guide
Many candidates for a relocation in Bali are wondering about the business opportunities that are reachable on the island of Gods, and in particular the ones that are accessible to foreigners.
Here is a complete overview about the business ventures most expats in Bali are usually taking, and the future opportunities that exist.
Creating a business: the best way to maintain yourself in Bali
Before we dive into the specifics, it’s important to remind yourself that if you plan on living in Bali, starting your own business is likely to be your best bet to establish yourself on the island (and to get a residence permit).
Job opportunities for foreigners are (very) limited and actively discouraged by the government to protect the local workforce.
Ask any expat in Bali that has been here for 10,15 or even 30 years what they do for a living and you’ll quickly realise that most of them have a business here.
Sure, the remote working trends we’ve seen in recent years have changed the expat landscape a little bit, but many of the nomads are not staying in Bali for years or decades, at least for now.
On the subject: What is the best visa to live in Bali?
What are the main drivers of the current balinese economy?
Bali is a bit special compared to the rest of Indonesia, and its economy could be quite confusing for a newbie on the island. Here are the main factors that drives the balinese economy at the moment.
Tourism: the main contributor to Bali GDP
Without much surprise, tourism both international and domestic, is a huge factor of the Balinese economy.
When counting all direct and indirect jobs, services and local businesses that rely on tourism, we can estimate that between 70% and 80% of Bali GDP is dependent on tourism.
Bali airport welcomes between 300,000 and 550,000 international tourists each month, and 50% more domestic tourists from all over Indonesia.
With such numbers on an island of 4 million inhabitants, it is easy to understand why most people, locals and foreigners alike, try to profit from tourism one way or another.
Real estate: a booming market fueled by tourism and foreign investment
Real estate in Bali has been absolutely booming in recent years. It is of course one of the main sectors that is surging every time the popularity of Bali and its number of tourists are on the rise.
The real estate market has been very profitable the past decades, and a lot of foreign investors tried to get their piece of the market.
Digital nomadism: a recent trend that isn’t likely to go anywhere
Bali was already very popular among digital nomads during the early years of the trend. But things took another scale during the post covid recovery when many foreigners were offered remote job opportunities.
Naturally, they flock to places that were already popular among their digital nomads peers and Bali profited from the boom. The money from digital nomads flooded everywhere, and created many new opportunities for locals and expats already set up in Bali.
On the subject: What is the best visa for digital nomads in Bali?
Profitable business opportunities for foreigners in Bali
Now that you know what has been driving the economy in Bali in recent years, here are opportunities that are relatively easily accessible to foreigners who want to set up shop in Bali.
Being a part of the real estate industry: a profitable business that is not likely to stop
The real estate industry is probably the most profitable and drags plenty of services that can be filled by foreigners. Among the most popular:
- Villa construction firms
- Real estate agencies (buy & sell, management)
- Architect firms
- Interior decor companies
- Solar panel / renewable energy suppliers
- …
Truly, opportunities are numerous, especially when considering the different kind of real estate: villas, hotels, guest houses, offices, shops and so on.
If you are already well-versed in the real estate industry in your country, it is safe to say that you are likely to find a profitable business idea in Bali in this sector.
On the subject: Real estate in Bali: how to invest as a foreigner?
Opening a restaurant, a cafe or a bar / club: an evergreen industry in Bali
Many long-term expats were / are restaurant, cafe or bar owners. Tourism brings new people on the island every single day and they rarely come to Bali with the plan to cook their own meals !
Popular touristic areas such as Seminyak, Canggu or Kuta are particularly renowned for their food offering that is truly worldclass.
Digital nomadism has also been a huge opportunity for the industry. Not only they have people coming to their restaurants or cafe daily, but unlike tourism, ambitious owners have many ways to make them loyal.
Sure, there is a lot of competition in this industry, but there is a lot of competition because it is very profitable.
On the subject: How to open a restaurant in Bali as a foreigner?
Textile and jewellery retail: Bali is one of the places where it still works
It’s safe to say that internet combined with covid has changed a lot of purchasing habits, and the retail market has been hit heavily in many areas around the world.
It is however less true in many resort destinations, where tourists continue to shop “in real life” as they wander around new towns.
Retail is therefore still very popular in Bali, and isn’t likely to go anywhere as long as tourists continue to come.
Textile and jewellery are staples of this industry. So if you want to create your own brand in Bali, you surely won’t be the first one, but you’re also likely to find your first clients if your offer matches the demand.
Home decor / furnitures, both for local demand and export markets
Home decor and furnitures businesses have always been interesting in Bali. Not only they can cater the ever growing demand locally, as the tourism and real estate surges, but it also offers plenty of opportunities for the foreign markets.
Many foreigners in Bali source furnitures or home decor in Indonesia and sell it abroad for a profit.
Whether you can design your own decor or furnitures or simply want to flip them into another country, that is surely an industry that doesn’t lack opportunities.
Tourism activities / agencies: a competitive but profitable market
Tourism agencies are still doing well in Bali, and so are the myriad of touristic activities you can find on the island.
Yes, it’s also a competitive market, with plenty of agencies already existing and a ton of different activities already offered to tourists.
But each year, some foreign entrepreneurs bring a new activity or a new concept and become very wealthy in return.
So if you don’t lack ideas and want to test them out, Bali is clearly a great place to be.
Sports and fitness centres / retreats: a booming trend that can be very profitable
Self-improvement trends have led a lot of people to try various activities to be a better version themselves one way or another.
In particular, many people have tried to hit the gym, start a new sport or meditate.
Naturally, these trends are very profitable for the ambitious entrepreneurs that bring them.
Businesses such as upscale gyms, boxing / MMA gyms, meditation centres, padel courts, yoga retreats or even pole dance studios have shown to be particularly successful in Bali.
IT services and tech: an industry that is still quite untapped in Bali
With the ever growing number of businesses starting left and right in Bali come a lot of various needs for IT services and tech in general. Like anywhere in the world, good developers are in need and not as easy to find as one might think.
Many businesses still need to be digitalised fully and few companies are able to do it on their own.
Surprisingly, it is not something that is widely tapped by foreigners yet, even though the needs are there.
Marketing, model, videos agencies: plenty of opportunities in Bali and the rest of Indonesia
Bali is one of the world center of marketing: to promote Bali or its businesses of course, but also to promote a lot of other products and services across the world.
Many foreigners have already successfully created their own marketing, model or video agency in Bali. It is a competitive market but one that can come with worldwide demand on top of the local one.
Keep in mind: Bali is only a fraction of the Indonesian market
Yes, Bali is filled with business opportunities for foreigners. But Bali is not Indonesia and one should not only stop at Bali when exploring the business ventures the country has to offer.
Tourism, digital nomadism and expats are already starting to expand outside of Bali
With the ever increasing tourism and real estate development in Bali, many are preparing the “post-Bali” and starting to develop the so-called “new Bali”.
What is really going to become the next Bali (if there would be one) is still largely up for debate. For some, Lombok is the Bali 30 years ago and will be the next one for sure. For others, it will be Flores, Sumba or Sumbawa.
Regardless of your stance on the matter, one thing is for sure, Indonesia wants to develop its tourism industry outside of Bali, and it will succeed at some point.
So if your business opportunity is too saturated in Bali, remember that it might not be in other islands of Indonesia.
The Indonesian government is actively trying to attract large scale projects that could boost its economy and improve its infrastructures
The Indonesian government has been successful in recent years in removing each red tape after another in order to boost foreign investment.
There are a lot of opportunities all around Indonesia that do not depend on tourism at all. Keep in mind that Indonesia is a developing country with 270 million people and an ever growing middle class with a good purchasing power.
The government has made it clear that large scale projects coming from foreign investment such as infrastructure building, manufacturing and construction are welcome in the country.
If most of these projects are out of reach for the average “lifestyle expat” who want to relocate to Bali, they could be very interesting for the ambitious entrepreneurs that aren’t scared of big enterprises.
Conclusion
The business opportunities are numerous in Bali and in the rest of Indonesia, even as a foreigner.
If most profitable businesses in Bali revolve around the tourism and real estate industry, that shouldn’t stop you from looking further into other industries that might not have been as exploited as tourism.
Contact our team to start your business in Bali, regardless of your industry and its scale.
