Learn from 2025’s Most Common Scams in Bali and Lombok and How to Avoid Them in 2026

Why Scams in Bali and Lombok Became a Wake-Up Call for Foreign Investors

In 2025, Indonesia’s paradise regions Bali and Lombok saw an alarming spike in business-related fraud cases. According to the Indonesian National Police (INP), dozens of reports were filed involving fake permits, falsified notarial documents, and vendor payment frauds targeting newly established foreign-owned businesses. Simultaneously, BPOM intensified its inspection campaigns on imported F&B and cosmetic products, uncovering several counterfeit distribution licenses that were never validated in the national system. The pattern is clear: behind the island’s booming investment scene, Scams in Bali and Lombok are getting more complex, more convincing, and more damaging.

For foreign investors eager to set up operations in Indonesia’s most popular business hubs, this trend serves as a critical warning. Scams in Bali and Lombok don’t just cause financial loss,they can also result in legal complications, business license suspensions, and even immigration scrutiny. Many of these scams succeed because they exploit trust, language gaps, and unfamiliarity with local bureaucratic systems.

This article takes a deep dive into the most common scam types that emerged in 2025, fake permits, fake signatures, fake notaries, fake licenses, and vendor scams and explains how foreign businesses can avoid repeating the same mistakes in 2026.

Take, for example, an investor who was urged to sign a “complete permit package” by a local broker. The documents appeared legitimate, stamped and signed, but months later, the BPN (National Land Agency) confirmed the permits didn’t match official land records. The lesson? Due diligence and verified documentation are not optional they’re survival tools.

Why Scams in Bali and Lombok Thrive in High-Growth Tourist Investment Zones

The surge of investment in Bali and Lombok’s tourism economy has brought remarkable opportunities, but also new vulnerabilities. Rapid infrastructure expansion, diverse ownership structures, and fragmented local governance have created fertile ground for manipulation. Each sector, real estate, hospitality, F&B, and retail, intersects with multiple agencies such as OSS (Online Single Submission), BPN (National Land Agency), BKPM (Investment Coordinating Board), BPOM (Food and Drug Authority), and Immigration. While these agencies aim to streamline business entry, their overlapping jurisdictions often create regulatory blind spots where scams can thrive.

Language barriers and cultural nuances add another layer of complexity. Many foreign investors, unfamiliar with Bahasa Indonesia legal terms or procedural expectations, depend heavily on third-party intermediaries, consultants, brokers, or “fixers” to navigate the bureaucracy. Unfortunately, this dependence often opens the door to Scams in Bali and Lombok, where forged documents or misrepresented approvals pass as authentic.

In 2025, the government issued updated BKPM Guidelines for risk-based OSS processes under the new regulation, aiming to strengthen licensing transparency. While this digital shift improved accessibility, it also presented new opportunities for deception. Scammers quickly adapted, producing fake screenshots of OSS dashboards, falsified NIB (Business Identification Numbers), and fabricated verification codes that mimic official interfaces.

The evolution of Scams in Bali and Lombok underlines one truth: the digital era doesn’t eliminate fraud, it changes its form. Investors must go beyond paperwork, verifying each registration both through official online registries and direct confirmation with government offices. True due diligence now means combining electronic verification with physical validation, because trust, in Indonesia’s fast-moving tourist zones, must always be checked twice.

Inside the Web of Scams in Bali and Lombok: The Most Common Fraud Patterns Every Investor Should Know 

A. Fake Permits & Misrepresented Approvals

Among all Scams in Bali and Lombok, fake permits remain one of the most widespread traps for new investors. Scammers often pose as property brokers or “consultants,” presenting what appear to be complete permit packages, yet many are forged, expired, or registered for the wrong plot or business activity.

Red flags: mismatched NIB (Business Identification Number), missing OSS electronic verification link, or a permit scope mismatch, such as using a “trade” permit for alcohol service.

Verify: check every permit on the official OSS RBA portal, ensure the NIB is valid, and request the original stamped documents. When in doubt, confirm authenticity directly with the DPMPTSP (Regional Investment Office). Even seasoned investors have lost funds to such Scams in Bali and Lombok, which can be prevented with a simple verification request.

B. Forged Signatures & Fake Authorizations

Another form of Scams in Bali and Lombok involves falsified signatures or forged powers of attorney. Fraudsters may produce doctored company minutes or property sale deeds signed by individuals who never granted such authority.

Red flags: the “signatory” avoids in-person meetings, refuses to show valid ID, or uses inconsistent handwriting and unofficial stamps.

Verify: review the company’s AHU (Legal Entity Administration System) profile to confirm who is legally authorized to sign. Ask for the signatory’s KTP (national ID) and request a notary instant check to verify the authenticity of the deed. Always ensure that each authorization matches the corporate data listed in OSS RBA records.

C. Fake Notaries & Unlicensed Legal Service Providers

A growing number of Scams in Bali and Lombok involve impostors pretending to be notaries. These individuals use copied letterheads or forged registration numbers to issue “notarized” documents that hold no legal value.

Red flags: the supposed notary’s office doesn’t exist, there’s no listing in the Kemenkumham Notary Registry, and the document lacks a verifiable deed serial number.

Verify: before signing anything, confirm the notary’s registration on Kemenkumham’s AHU Notary Database and ask for proof that the deed has been uploaded and registered. Always request an original stamped deed, and where possible, contact the notary’s official office directly. These types of Scams in Bali and Lombok are particularly dangerous because they create a false sense of legal security.

D. Fake Business Licenses & BPOM/Import License Fraud

In the F&B and retail sectors, counterfeit BPOM and import licenses are among the most prevalent Scams in Bali and Lombok. Fraudsters market cosmetic, supplement, or alcohol products under fake BPOM registration numbers or reuse another company’s import license (API).

Red flags: suppliers only provide screenshots of registry entries rather than live BPOM links; the API holder’s name doesn’t match the importer’s details; or the product packaging carries an outdated or unverifiable BPOM code.

Verify: always search the BPOM public registry to confirm product numbers and ensure the listed company matches your supplier. Cross-check API data through the Customs Directorate using the latest guidelines under BPOM Regulation No. 18/2024. Reputable legal advisors such as ARMA Law also warn that these license-related scams continue to grow, making regulatory due diligence an essential step for all importers.

E. Vendor & Procurement Scams

Within hospitality and construction operations, Scams in Bali and Lombok often take the form of procurement fraud. These schemes involve ghost suppliers, inflated invoices, or secret kickback arrangements between staff and vendors.

Red flags: cash-only suppliers, single-vendor dependency, missing purchase orders, or invoices without delivery notes. Fraudsters may also manipulate invoice serial numbers to trigger duplicate payments.

Prevent: establish a three-way matching system, matching PO, delivery note, and invoice before releasing payments. Conduct regular vendor background checks, rotate procurement approvers, and mandate corporate bank transfers to reduce off-book payments. For high-value transactions, require tax invoices and NPWP validation to ensure vendors are legally registered.

F. Real Estate–Specific Traps

The property sector remains one of the biggest magnets for Scams in Bali and Lombok. Common tactics include double-booked land parcels, fake land certificates (SHM/HGB), and misleading claims about “tourism-zoned” property rights.

Pattern: fraudsters often present partial land certificates or BPN extracts belonging to nearby plots. They may pressure investors to make quick payments, claiming the deal is time-sensitive or that foreign ownership rules are “negotiable.”

Red flags: sellers avoiding direct BPN verification, inconsistent land-use data, or last-minute “discounts” for full cash payment.

Verify: check the land details via the BPN online extract, confirm the zoning through the Dinas Tata Ruang (Spatial Planning Office), and demand certified notarial copies of all land documents. The most effective way to avoid property-related Scams in Bali and Lombok is to verify every claim directly with government databases, never through an intermediary alone.

G. Visa & Immigration Agent Scams

Visa fraud is another persistent variant of Scams in Bali and Lombok, often targeting expatriates and business investors. Unscrupulous “agents” promise fast-track KITAS or investor visas, using fake sponsor companies or unregistered intermediaries.

Red flags: sponsor companies that don’t operate physically, agencies refusing to provide official documentation, or testimonials that look copied or generic.

Verify: confirm your sponsor’s status on the Directorate General of Immigration’s official list, and validate the sponsor’s company data via AHU and OSS. If an agent insists on cash-only fees or promises “instant approval,” treat it as an immediate warning sign. According to the Indonesian National Police (INP), visa-related scams have increased in tourist regions, highlighting the importance of verified channels for immigration support.

The Real Cost of Scams in Bali and Lombok — Legal, Financial, and Reputational Fallout

The recent surge of Scams in Bali and Lombok has revealed just how devastating fraudulent activity can be for legitimate investors. What might start as a seemingly small paperwork issue can spiral into major legal, financial, and reputational consequences.

From a legal standpoint, the possession or use of forged permits, fake NIBs, or counterfeit business licenses can lead to revoked permits, criminal charges, and even deportation for foreign investors. Authorities are taking stronger stances against document fraud: both the Indonesian National Police (INP) and Immigration Office have intensified inspections in popular business zones across Bali and Lombok.

Financially, the damage often goes far beyond fines. Businesses may face confiscation of goods, loss of operational licenses, or even termination of lease agreements tied to fraudulent approvals. In many cases, investors lose both capital and credibility in the market.

The reputational impact is equally severe. Once a company is linked to Scams in Bali and Lombok, trust from partners, suppliers, and clients can evaporate overnight. Even if the investor was an unknowing victim, the perception of negligence can harm future ventures.

Enforcement data from 2024–2025 shows a clear trend: BPOM and Immigration have ramped up raids targeting non-compliant operators and counterfeit documentation networks. While these crackdowns signal a cleaner market ahead, the reality is that recovery for victims remains slow and difficult, another reason why proactive due diligence is essential before any transaction or permit validation.

Your 10-Step Verification Guide — How to Outsmart Scams in Bali and Lombok

Before you sign a contract, transfer funds, or hand over documents, complete these 10 critical checks to avoid Scams in Bali and Lombok. These steps combine online verification tools and on-the-ground confirmations that help investors ensure every deal and document is legitimate.

1. AHU Company Search – Verify a company’s legal existence, directors, and registered office through the official Ministry of Law and Human Rights (AHU Online) system. Cross-check that the notary deed matches AHU’s database before engaging.
2. OSS / NIB Lookup – Use the OSS-RBA system to confirm a business’s NIB and license classification. Ensure activity codes align with the actual operations described in your deal.
3. BPN Land Extract – Always request a certified copy of the land certificate and a recent bermeter (official survey). Match boundaries and ownership details via ATR/BPN.
4. Notary Verification – Ask for the notary’s SIP (practice license) and deed registration number. Contact Kemenkumham to confirm the notary’s active status.
5. BPOM Product Check – For food, cosmetics, or wellness products, verify the registration directly with BPOM’s live registry to avoid dealing with counterfeit approvals.
6. Immigration Sponsor Confirmation – If visas or work permits are involved, confirm your sponsor’s validity through the Directorate General of Immigration before proceeding.
7. Bank Transfer Policy – Only transfer to verified corporate bank accounts. Personal accounts are a classic red flag in many Scams in Bali and Lombok.
8. Three-Way Procurement Match – Align the purchase order, delivery record, and invoice to spot inconsistencies early.
9. Independent Due Diligence – Hire an external legal or compliance advisor for an objective review instead of relying solely on broker recommendations.
10. Maintain an Audit Trail – Keep all digital records, screenshots with timestamps, and notarized translations where applicable.

Quick tip: While most verification portals are now digital, scammers have become adept at faking electronic screenshots and registry snippets. Always cross-check with live databases or contact the agency directly for final validation.

What to Do If You Fall Victim to Scams in Bali and Lombok

Even the most cautious investors can fall prey to Scams in Bali and Lombok. Acting quickly and methodically can make the difference between financial loss and possible recovery. Here’s how to respond effectively.

1. Immediate Actions — Contain the Damage

The first step is to stop all payments immediately. Contact your bank to freeze any pending transactions or transfers. Preserve every communication, including chat logs, emails, invoices, and bank receipts. These become vital evidence later. Safeguard all original documents (permits, land certificates, contracts), and engage a licensed lawyer or public notary as soon as possible. A legal professional can issue formal notices and start preservation actions before assets are moved or altered.

2. Administrative and Legal Reporting — File Official Complaints

Report the fraud to the appropriate authorities:

• Polres/Polsek (local police) for criminal investigation.
• BPN (atrbpn.go.id) for land or property-related deception.
• BPOM (pom.go.id) for counterfeit or unregistered product cases.
• Directorate General of Immigration for visa or sponsorship fraud.
• OSS/BKPM for business permit and licensing irregularities.

Each report should include supporting evidence, transaction records, and witness statements to strengthen your claim.

3. Recovery and Realistic Expectations

Legal recovery in Indonesia can be slow. Criminal investigations and civil claims are available, but asset tracing is complex once funds are withdrawn or transferred. Early engagement of counsel increases the likelihood of freezing accounts or preventing resale of disputed property.

In all Scams in Bali and Lombok, timely response and proper documentation are your strongest tools to protect your interests and pursue justice.

Preventive Lessons and Best Practices to Avoid Scams in Bali and Lombok

The most effective defense against Scams in Bali and Lombok is prevention through structured, verifiable business practices. Investors and entrepreneurs can minimize exposure by establishing disciplined internal controls and partnering only with legitimate, verifiable professionals.

Start by engaging vetted local legal counsel and always conduct in-person verification of signatories before executing any document. For high-value transactions, use escrow services and apply staggered payments tied to confirmed milestones instead of lump-sum transfers. Implement mandatory supplier audits and due diligence checks before finalizing vendor contracts, especially in the hospitality, property, and import sectors.

For smaller businesses, maintaining a corporate governance checklist is crucial. Assign a local compliance officer or A&G representative to review contracts, verify permits, and monitor vendor relationships continuously. Proactive verification today prevents costly lessons tomorrow in the ever-evolving landscape of Scams in Bali and Lombok.

Frequently Asked Questions: Quick Answers for Avoiding Scams in Bali and Lombok

To wrap up, here are concise answers to common questions from investors and business owners trying to navigate the risks of Scams in Bali and Lombok.

Q: How quickly can I verify a permit?

You can conduct an OSS lookup in minutes for a basic confirmation. However, obtaining certified proof or notarial confirmation may take a few business days, depending on the agency and document type.

Q: What is the single biggest red flag?

Be cautious if anyone pressures you to make immediate cash transfers — especially to a personal bank account. Legitimate transactions should always go through traceable corporate channels.

Q: Do digital screenshots count as proof?

No. Screenshots can be easily fabricated. Always perform a live registry check on official government platforms and request documents with verifiable reference numbers.

Q: Should I report even if the amount is small?

Absolutely. Even small-scale incidents of Scams in Bali and Lombok help authorities identify fraudulent patterns and protect future investors. Early reporting strengthens enforcement and may prevent others from becoming victims.

By staying vigilant, verifying every document, and reporting irregularities, you contribute to a safer and more transparent investment environment across Bali and Lombok.