YT YouTube2Text

YouTube2Text → Transcripts → За что сейчас сажают на Бали? Обвал экономики и недвижимости в Индонезии

За что сейчас сажают на Бали? Обвал экономики и недвижимости в Индонезии — Transcript

by Эксперт Бали 🎙 · 13,854 words · 2,345 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00Foreigners were arrested in Bali with
0:02kilograms of cocaine. The immigration
0:04service is no longer just deporting
0:05people; they are filling up prisons.
0:07Mass protests in Jakarta. Real estate in
0:09Indonesia has collapsed by over 40%.
0:12Office real estate has crashed by 70%,
0:15with a total blackout affecting 1.5
0:17million people. In Bali, they are
0:20mercilessly hunting down bikers with
0:22loud exhausts. Indodax is paralyzed. All
0:24payments have been halted. Losses exceed
0:27200 billion. Sumatra is suffocating.
0:29Hotels in Bali are being sold off en
0:31masse. RedPay has stopped transactions
0:33in rupiah, a stock market crash, and
0:35much more in this episode.
0:40>> Well, let's start with immigration. You
0:42don't mind, do you?
0:43>> Let's go with your favorite. Let's start
0:44with your favorite, immigration.
0:45>> The head of Indonesia's immigration
0:47service publicly stated: "Do not think
0:49that violators will just be deported;
0:51they will be tried and imprisoned."
0:54The trigger was a case involving ten
0:55foreigners who obtained investor visas
0:57while conducting no real business in
0:59Indonesia.
1:00They only needed an Indonesian residence
1:02permit to later obtain a visa for Europe
1:04. Now they face up to 5 years in prison
1:06. If you are applying for an investor
1:09residence permit, there must be a real
1:10business and real money behind the
1:12company. Schemes along the lines of: "
1:14We'll get you an investor visa using a
1:15shell company." Now it's not just a risk
1:17of deportation; it's a potential
1:19criminal case. Listen, if you took our
1:22videos to the head of immigration, I
1:24think you'd be in good standing.
1:27>> Why?
1:28>> Because you and I always say, we say
1:31more positive things about the locals,
1:34in the sense of, "respect local
1:37traditions," rather than "hey guys,
1:40let's try to deceive and outsmart them.
1:43"
1:45So I think if you took them and turned
1:47on the automatic Indonesian subtitles,
1:50you could become a very popular blogger
1:53in immigration circles.
1:56>> Karma, by and large, gets a plus
1:58systematically every two weeks anyway.
2:01Right.
2:03>> Of course, of course.
2:04>> Well, let's go. Well, everything here is
2:06correct for some reason. By the way, I
2:08saw in the comments, people talking
2:09about the "talking head," like, here's a
2:10talking head, why do you include a
2:11talking head?
2:12Well, the person is actually saying the
2:14right things, really. It's just that,
2:15perhaps, his manner of self-expression
2:17doesn't sit well with some.
2:19But what can you do, there's nothing you
2:20can do about that. Right. And
2:26this has always been a criminal offense
2:29, categorized as fraud, right?
2:33So you are taking advantage of their
2:35openness. Once again, we are taking
2:37advantage of the openness and kindness
2:39of Asians.
2:41We arrive, we deceive them, we wrap them
2:43around our fingers, and we get for that
2:49>> deportation previously, and now prison.
2:51>> Well, I categorically disagree with you
2:54. Right.
2:55>> So, wait, wait.
2:56You disagree with the fact that people
2:58were organizing themselves into groups
3:00of 10, opening companies—nominal
3:02companies, of course—that conducted no
3:04business activity, didn't even open bank
3:07accounts, and kept no records.
3:09Nothing, just to hold a KITAS, right?
3:13Then, accordingly, these people used
3:15this behavior, combined, to take
3:18advantage of these loopholes in
3:20Indonesia just to live there illegally,
3:23effectively.
3:25And you specifically disagree with that
3:27. What exactly do you disagree with?
3:29>> Firstly, you said "we" come and scam
3:31people, we deceive them, so I ask you
3:34not to generalize like that.
3:38Secondly, the stock market crash, the
3:40JCI—that’s an index of the Jakarta Stock
3:43Exchange—plunged by a staggering 47%in
3:46the year '26.
3:48Meaning it’s the worst figure in the
3:50last 6 years. They are planning to
3:53downgrade Indonesia's index from an
3:56Emerging Market to a Stand-Alone Market
3:59. Which means an isolated market.
4:04The decision must be made by June 2027.
4:09But if this decision is made, Indonesia
4:12will essentially fall to the level of,
4:15let’s say, roughly Zimbabwe or Palestine
4:19.
4:20Well, in general, that would be very bad
4:22. In general, capital flight from
4:23Indonesia is very serious. British banks
4:25have started withdrawing money from
4:26Indonesia, to which the authorities said
4:28, "No, no, no, everything is fine.""
4:29They are just repatriating profits, and
4:31they are not selling off their assets."
4:34There are many reasons for this decision
4:37by Morgan Stanley to conduct such a
4:40revision of the index: starting from
4:42administrative opacity, naturally,
4:45various instances of corruption,
4:47suspicions of collusion between various
4:50entities in determining stock prices,
4:53and so on and so forth.
4:57So, there are many complaints, let's say
4:58, against Indonesia, because the
4:59authorities say, "No, that's all a lie,
5:01there's nothing going on there."
5:02Yes, well, in general, I've heard that
5:04kind of thing before, somewhere in some
5:05country, about: "Everything you're
5:06saying is a lie."
5:08Since the beginning of the year, the
5:10national currency, the Indonesian rupiah
5:12, has already dropped by 8%, or maybe
5:13even more by now.
5:16As for real estate, we are currently
5:18looking at not just Bali, but Indonesia
5:20globally, and there is a decline in
5:22demand, an outright collapse.
5:25And this year, you could say the real
5:28estate market has crashed, meaning it
5:30has shrunk by 25%—demand has plummeted
5:33by a quarter.
5:35In other words, no one needs anything
5:36from anyone.
5:38It must be said that the greatest losses
5:40occurred precisely in the budget housing
5:43segment.
5:44Meaning the Indonesians essentially said
5:46that we simply have no money. Almost 46
5:49%.
5:50So, this is very serious. The office
5:52crisis is not good at all.
5:55If we take Jakarta, there’s a 74%
5:57collapse, despite this general downturn
5:59, there is significant progress in the
6:02logistics sector.
6:04Warehousing is developing, such storage
6:06real estate, and everything related to
6:08e-commerce transportation seems to
6:09provide a certain plus.
6:11Moving on to Bali.
6:13Here it must be said that, once again,
6:15we are looking at real estate in the way
6:17it is understood by, let’s say, foreign
6:19investors.
6:21That is, when ownership rights are
6:23closed off, when the conversation is
6:24basically about leasing, by and large,
6:26such investments cannot even be
6:28considered real estate investments,
6:30right?
6:31Because, in fact, no transfer of rights
6:33to the property occurs.
6:35Basically, when foreigners talk about
6:37real estate investment, they are talking
6:40about leasing.
6:42So, this leasing, it must be said, yes,
6:44it has crumbled, it’s of no interest to
6:46anyone, but it should be noted that land
6:48in this segment of usage rights is
6:49growing very strongly.
6:51Naturally, with caveats, everything
6:53depends on the specific region.
6:56That is, for the most part, it is, of
6:58course, either resort areas, meaning
7:00South Bali, or Denpasar and some elite
7:02real estate, let’s say, which is in
7:04demand.
7:06The question arises: why all of a sudden
7:09here in Bali? Given that just recently
7:12we had a gasoline crisis. On Kalimantan
7:15, the forests are burning.
7:18In Batam, there’s a blackout; there’s no
7:20electricity, the internet keeps cutting
7:22out.
7:24On Sumatra, people have nothing to
7:25breathe; they are breathing only carbon
7:27dioxide due to these forest fires as
7:29well. So, there is some kind of chaos
7:31and devastation everywhere.
7:33Well, maybe not chaos, but these events
7:36are occurring that, let's say, do not
7:38really stimulate price growth, yet
7:40suddenly real estate in Bali is rising.
7:43Traditionally, Indonesians either have
7:45no money, or if they do, they place
7:47everything within the country.
7:50So, for all Indonesian real estate, Bali
7:54is traditionally the most, let's say,
7:57preferred and interesting island for
8:00placing such funds.
8:04Therefore, in my view, prices are rising
8:06not because everything is good, but
8:08precisely because everything is not very
8:10good.
8:13And people are simply, well, hiding—or,
8:15naturally, some are hiding not very
8:18legitimately acquired income in real
8:20estate, while others are just trying to
8:23save their last bit of money by
8:25purchasing small plots of land.
8:29Therefore, in my view, this price growth
8:31doesn't indicate that everything is fine
8:33, but rather that things in the economy
8:35are not exactly going well at all.
8:37How long can this continue?
8:40Naturally, if, for instance, Morgan
8:42Stanley were to crash the index, yes,
8:45the "stand-alone" one, then Western
8:47investors would take flight and leave
8:50Indonesia altogether.
8:52I think that, again, everything still
8:54largely depends on the economic
8:56situation in the world at large, but I
8:58suspect that Indonesians will surely run
9:00out of money soon, at least in the sense
9:02that there will be nothing left to hide
9:04. Meaning, only funds for daily living
9:06will remain.
9:08In that case, I expect that prices will
9:10, of course, begin to crash and fall
9:12quite significantly.
9:14>> Beyond all this, I want to explain to
9:17our dear viewers that roughly toward the
9:20end of the video there will be fantastic
9:23food for thought, thanks entirely to the
9:26fact that criminal liability for
9:29criticizing the government was just
9:32recently lifted.
9:35That is to say, hostile voices reacted
9:37instantly and started going at it. Well
9:39, I, in general, that whole thing...
9:41>> I beg you, I beg you, I beg you.
9:43In reality, this removal of criticism of
9:45the authorities, don't you understand,
9:47is just a way to play at democracy,
9:49which doesn't actually exist.
9:52And the authorities in Indonesia always
9:54have their levers of influence, at the
9:55very least, through government
9:56structures.
9:59I beg you, let's, of course, keep saying
10:02that Indonesia is a democratic country,
10:05but, um, as we can see, JPMorgan wants
10:07to downgrade its credit rating,
10:10primarily because this country is very
10:13corrupt.
10:15Inside, there are many opaque schemes
10:17that, in fact, prevent you from creating
10:20any system of reporting.
10:23Well, you probably know there is such a
10:25system called the International
10:27Financial Reporting Standards, or IFRS,
10:29so to speak.
10:30And, of course, under these IFRS, our
10:34companies that we open in Indonesia—
10:38these societies, open joint-stock
10:41companies with charters, paper capital,
10:45shares, and voting stock—it’s all just a
10:50sham. Of course, if you go out with this
10:54to the IFRS and submit documents to
10:56confirm a growing market and attract
10:59investment, then, yes, on paper,
11:02everything in Indonesia looks just fine
11:05.
11:06But we started our video with the fact
11:09that 10 people were arrested and
11:11deported, and others will be imprisoned
11:14later, perhaps because they were just
11:16receiving kitas, while 10 billion in
11:18authorized capital was listed on paper.
11:22So just calculate how many such people
11:24were receiving kitas 3 years ago.
11:26Yes, people far removed from business,
11:28they had no clue what was happening,
11:30what business even is.
11:32I mean, people so far from business were
11:34receiving these kitas.
11:36And all this, of course, gave hope that
11:38the number of companies was growing, and
11:41consequently, the capital attracted to
11:43Indonesia was growing too.
11:45But now, little by little, a certain
11:47realization is beginning to dawn. It’s
11:49interesting why, why GP Morgan, so to
11:51speak, has paid attention just now. Well
11:54, Morgan Stanley, Morgan Stanley, yes,
11:56the rating agency Morgan Stanley. It’s
11:58interesting why they have paid attention
12:00to this now?
12:01I think it’s because, first of all, the
12:04government is highly militarized now,
12:07and there’s a desire to reconsider and
12:09look at how the Indonesian economy
12:12actually works.
12:14And it turns out that it is, in general
12:16, a country with many resources, which
12:18sells off its resources, a
12:19commodity-based country.
12:21And we’ve heard about these types of
12:23countries somewhere before, where
12:24currencies also eventually collapsed.
12:26>> I like how you are slowly pulling the
12:28blanket from Bali toward Paraguay. I
12:31will provide a little bit of statistics
12:32. 40%of all foreign companies in
12:35Indonesia are registered in Bali.
12:38And to be honest, or rather to be
12:40precise, that is 19,262
12:43companies. At the same time, Bali's
12:45contribution to national investment
12:47implementation is 1.64%.
12:51Well, we’ve already mentioned this
12:53before, but it’s worth repeating.
12:56>> On popular real estate sites, hundreds
12:57of listings for hotels and villas for
12:59sale across the island were found.
13:01To be more precise, local journalists
13:03counted 524 listings for the search term
13:05"hotel." Out of these, 244 are
13:07specifically hotels and villas that have
13:09been put up for sale. Prices range from
13:11hundreds of millions to hundreds of
13:13billions of rupiah. Headlines
13:14immediately appeared: "That’s it, Bali
13:16is collapsing, investors are fleeing."
13:18The Governor of Bali reacted and
13:19instructed the tourism department, along
13:21with the Badung authorities, to check
13:23every listing.
13:24According to him, the occupancy rate of
13:26star-rated hotels is currently 80-90%.
13:29And he sees the reason for the sales is
13:30that many owners have businesses not
13:32just in Bali. Everything is fine here,
13:34but there are problems in another region
13:36, and money is moving from here to there
13:37to plug the holes. A listing for sale is
13:40not a sale. In any market in the world,
13:42someone is always selling, and 244
13:44properties on an island where thousands
13:46of accommodation facilities operate is
13:47not a collapse. The market is not
13:49falling, the market has stratified.
13:51What’s being sold first and foremost is
13:53what was built without planning, without
13:54a clear concept, and without a proper
13:56management company. Good properties with
13:58competent management and a decent
13:59location aren't being listed in such
14:01massive numbers. In parallel, the
14:03governor reported that about 5,000
14:05villas have submitted documents for
14:07licensing for 2025 and 2026. And booking
14:10platforms are stopping the promotion of
14:12illegal accommodation. So, two processes
14:14are happening simultaneously. Some are
14:16leaving the market, while others are
14:18legalizing. And the Bali Travel Agencies
14:20Association is even proposing a
14:22moratorium on new accommodation
14:23facilities. If such a moratorium is
14:25adopted, supply will stop growing, and
14:27those who already own legal properties
14:29will benefit. By the way, the governor
14:31specifically rejected the theory that
14:33the reason for the sales is an
14:34oversupply of rooms due to excessive
14:36construction. But the travel agencies,
14:38judging by their moratorium proposals,
14:40see it differently. For a buyer, there
14:42is an opportunity here. When an owner
14:44wants to exit quickly, you can negotiate
14:46. But a ready-made property with a
14:48discount is not necessarily a profitable
14:49purchase. First come the documents, the
14:51license, and real occupancy based on
14:53statements.
14:54If a property isn't getting booked
14:55because it’s in a bad location or lacks
14:57a license, a discount won't save you.
15:00You will simply be buying someone else's
15:01problem.
15:03I mean, honestly, the governor’s point
15:05of view is interesting; I liked that he
15:07says it's not a market collapse, that
15:08everything is fine, and that out of
15:105,000 accommodation units, 250 are for
15:12sale—that's 5%, which, I don't know,
15:14feels like quite a lot.
15:17And what I probably liked most is the
15:19idea that no, it’s just that they have
15:22problems in other countries, while here
15:24everything is fine, so they are selling
15:26here, so to speak, to close gaps—
15:28financial gaps in other countries.
15:31When I talk to the guys, honestly, they
15:34just want to exit and run—run from their
15:37investments, most often at a 50%loss.
15:42If you recall, you and I clearly talked
15:43about this: the discount would be about
15:4550%.
15:46Many are already offering 50%, and some
15:48are even willing to go lower than 50%.
15:50What is this connected to? I think it's
15:52very clear: it's due to the introduction
15:54of new regulations.
15:56And it's correctly stated again that
15:59people didn't calculate their business
16:02models for what Indonesian legislation
16:05might look like when they want to
16:08enforce their own norms and their own
16:11rules.
16:13It turns out that it is not at all
16:15friendly towards foreigners.
16:18You need licenses, certificates,
16:21building licenses, and construction
16:23permits.
16:25Permits for renting out property. The
16:27land must correspond to its designated
16:29purpose. It turns out that most land
16:31does not match its designated purpose. A
16:34hotel, or short-term rentals, and so on
16:36and so forth. It's just dominoes falling
16:39one after another. Falling.
16:41In principle, the governor is right in
16:43this regard if he says, "Guys, you
16:44didn't quite calculate, you didn't
16:46calculate your business model, that 10%
16:47of initial investment needs to go into
16:49paperwork alone, right?"
16:51And in general, he will turn out to be
16:53right.
16:54Furthermore, it will turn out that when
16:56people were building, they set one
16:58budget, but ended up exceeding it by two
17:00, some by three times; some covered
17:02these issues at their own expense,
17:04others covered them at the investors '
17:06expense—using someone else's money,
17:08essentially.
17:10And in the end, it turns out they are
17:12sitting on a stinking, as I always say,
17:14pile of crap, expensive crap that no one
17:16wants to buy for the reasons you already
17:18know, which I described earlier. So, if
17:21this continues, they will keep lowering
17:24and lowering and lowering the price.
17:27Accordingly, you understand what the
17:29exit price will be for other people who
17:31might want to sell their property later
17:33, even if it's of good quality, and what
17:35the legal due diligence for these
17:37properties will be like. Therefore, it
17:39seems like these dominoes are a sign for
17:42the authorities to think, and honestly,
17:44this whole trend of authorities jumping
17:47into the market at the slightest issue.
17:50Just let the market demonstrate itself.
17:52Stop trying to save everyone, right? And
17:54first and foremost, your own asses. Let
17:56the market work.
17:58>> You've been talking for about five
18:00minutes now, and you haven't provided
18:02any useful information at all.
18:04It's nothing but empty talk, you
18:06understand? And with all that, I'm sure
18:09it's the same on your channel. And
18:11people are watching. But when you give
18:14them proper, ah, monumental, I would say
18:17, materials for analysis, for some
18:20reason, no one is interested. This, of
18:23course, is not something to be happy
18:25about.
18:26And the thing is, even our precious
18:27subscribers who are capable of
18:29commenting are writing: "Yes, the real
18:31estate market in Bali is really heading
18:33into the abyss."
18:35I used to close three or four deals a
18:37month, and now it's one every 2-3 months
18:39.
18:41Developers don't have enough money to
18:42finish projects and pay investors.
18:46There is demand for completed property,
18:48but primarily for objects with a yield
18:50of 10%per annum, good views, and proper
18:52documents.
18:53Top agents are gradually returning to
18:56Dubai. I also think it's time to bolt
18:59over there.
19:01Tell me, please, which properties today
19:04actually provide a stable 10%net annual
19:07return?
19:08Do those even exist in Bali or not?
19:11>> I will repeat to you what I said 3 years
19:14ago, 2 years ago, and a year ago.
19:17In principle, entering renovations with
19:20a minimal budget—and with a "gray area"
19:23agreement, naturally, with a local to
19:26rent out the property, based purely on
19:29your personal arrangements or perhaps
19:32some simple documentation like a joint
19:34company—could still bring you more than
19:3810%annual return per month even now.
19:42And that's it.
19:43Everything else, if you truly understand
19:46this market, boils down to two extremes
19:48, because finding a balance between them
19:50is impossible.
19:52The first is to do everything by the
19:54rules, where you will end up paying and
19:56overpaying regardless. And that is an
19:58expensive entry, I mean a super
20:00expensive, premium entry into the market
20:02, calculated in the millions of dollars
20:04, compared to doing everything against
20:07the rules.
20:08In that case, you can find small
20:10renovation projects like these,
20:12understanding your risks and investing $
20:1510,000–$ 20,000 in each under your own
20:18control, because it won't work remotely
20:20.
20:22Quietly and surreptitiously, so to speak
20:25—paying off the police here, paying off
20:28the local banjar there, and sharing
20:30money with the landlord—you can still
20:33make money with this scheme, but it is
20:36becoming increasingly risky.
20:39>> That sounds disgusting. Reading between
20:42the lines, it almost sounds like a call
20:44to action, as if to say: "Guys, if you
20:46want money, you'll have to work in the
20:49gray market."
20:50I urge everyone, first of all, not to
20:52work but to rest, and secondly, if you
20:55want to work, do it strictly above board
20:58and strictly at home, not on the island
21:01of Bali.
21:01>> I want to say right from the start that
21:03this is a truly complex issue.
21:05The situation has become so complicated
21:07that obtaining legal documents and
21:08legalizing a business is getting harder
21:10and harder.
21:13The fact is, if we are talking about
21:15Bali, the main segment of foreign
21:17investment where people were placing
21:20their money—real estate—is largely in
21:23decline.
21:25Will it return to its, so to speak,
21:27former course?
21:28Will there be some kind of upturn? I
21:30have almost no doubt that yes.
21:32Undoubtedly, it will take time, and
21:34perhaps a rather long time.
21:37And perhaps during this period, changes
21:40will occur where these developers,
21:42especially the fly-by-night operators
21:44who arrived here in large numbers a few
21:46years ago, will close down, go bankrupt
21:48, and scatter.
21:50And a significant number of people,
21:53unfortunately, their clients, will
21:55likely lose their investments in the
21:58process. Well, unfortunately, it is what
22:00it is. You should have thought about it
22:01earlier and checked where you were
22:02investing your money.
22:04But globally, if we look at the real
22:07estate market, I think it will continue
22:10to grow over time because Bali has
22:13always been and remains a tourist, shall
22:16we say, center.
22:19The island itself isn't getting any
22:21bigger, but the population is, so people
22:23need places to live and stay, and
22:25infrastructure will develop regardless.
22:28If you want quick returns and are
22:30looking specifically at the real estate
22:32market, Indonesia—and Bali in particular
22:35—isn't the best place right now.
22:37Indonesia is only open to large-scale
22:40investments. Indonesia is not interested
22:42in small, medium, or micro-businesses.
22:44Many people just brushed that aside back
22:46in the day, so to speak. Hoping that,
22:48well, maybe they’d get lucky. No, they
22:50didn't get lucky.
22:51I think Bali will eventually recover
22:54from the kind of economic chaos it has
22:56found itself in.
22:57But, as I already said, that will take
22:59time.
23:00>> How much time will it take? And will
23:02those golden hours ever return, when
23:05Andre Frey would just sit in his park,
23:08broadcasting, and people would send him
23:11bags of Tether or other cryptocurrencies
23:14, and he
23:15>> I think we have a cycle, a 10-20 year
23:19cycle here in Bali, where history
23:21repeats itself, when new leniency
23:24happens, new authorities come in, and
23:27accordingly, they open up once again, so
23:31to speak, with wide-open arms and bowed
23:34heads.
23:35Once again, they are opening their
23:37country—in this case, their island—to
23:39small investments, because the country
23:41itself is still open. Indonesia is still
23:44open, in general, to medium and even
23:47small entrepreneurs. It is just Bali
23:49that is closed. So,
23:53I think it will take about a decade to
23:57recover and, so to speak, for new Andre
24:01Freys—new thirty-year-old guys,
24:05ambitious, with Kazakh-German roots—to
24:09come and conquer Bali again with ideas
24:13of free housing for creative people.
24:17>> Well, surely that’s cool, but why is
24:18that a good thing?
24:21It would be good, of course, if it
24:22weren't for the confusing, first of all
24:24, protests all over the world.
24:27We will come back to that a little later
24:29. And recently, as we’ve already
24:31discussed, there’s been the gasoline
24:33crisis in Bali, forests are burning, the
24:35Kalimantan fires, and blackouts.
24:38By the way, the blackout was caused by a
24:41monkey.
24:42That’s a truly fantastic story.
24:46Now, before I share some very powerful
24:49material, I will read that 15 million
24:51people were left without power for
24:54almost a day because a monkey got into a
24:57substation and presumably caused a short
25:00circuit in the equipment, but the
25:02automatic protection system failed and
25:05the failure spread to other substations
25:08.
25:10And when the investigations began, what
25:12turned out?
25:15The electric fence protecting the
25:16substation from animals turned out to
25:18have been disconnected, and the day
25:20before the accident, a security camera
25:23had been turned aside. Well, in general
25:25, there are some serious inquiries going
25:26on there.
25:28Now, regarding what you said about the
25:31decade-long material—this is hostile, I
25:34stress, hostile material.
25:38I mean, I already said that they
25:40abolished criminal prosecution and
25:42criminal penalties for criticizing the
25:45authorities.
25:47There it is. And immediately, hostile
25:50tongues began to throw in these kinds of
25:55information leaks.
25:57>> Indonesian President Prabowo Subianto is
25:59leaving his mark on history. In this
26:01position, he has brought Indonesia to
26:03the forefront of global affairs. He is
26:05definitely a tough nut to crack. This is
26:07Indonesian President Prabowo.
26:12No country is more important to
26:14Australia than Indonesia.
26:17Prabowo is rapidly nationalizing the
26:19economy and expanding the armed forces
26:21to achieve his goals.
26:24But there are some who worry that his
26:27leadership is an echo. Thus, the Prabowo
26:30era is beginning to resemble the Suharto
26:32era. Yes, that is exactly how it is.
26:35According to some polls, Prabowo's
26:37approval rating exceeds 70%, which is
26:39relatively high.
26:40But this is because there is a free meal
26:42program for low-income families.
26:45>> Who is getting the financial benefit?
26:47>> The ones benefiting are his inner circle
26:49, mainly those who supported Prabowo
26:51during the 2024 presidential campaign,
26:53as well as former generals who are
26:55involved in many of Prabowo's projects.
26:58>> In March 2025, protests took place
27:01across the country. Demonstrators were
27:03outraged by the expanded military
27:05involvement in civilian institutions.
27:08They considered it a revival of the
27:10repressive, militaristic Suharto era.
27:13Starting in the mid-1960s under
27:14Suharto's leadership, hundreds of
27:16thousands of people died during purges,
27:18conflicts, and repressions.
27:21In 1998, the patience of the Indonesian
27:24people ran out.
27:26Thousands of people took to the streets
27:28, demanding an end to the
27:30thirty-two-year rule of the brutal and
27:32corrupt dictator, General Suharto.
27:35At that time, Prabowo was a three-star
27:37general and a member of the Suharto
27:38family.
27:41As a young officer, he married Suharto's
27:43daughter.
27:45Prabowo was accused of war crimes in
27:47East Timor and West Papua, but he denies
27:50this.
27:52During the movement that led to
27:53Suharto's resignation, he ordered the
27:55kidnapping of activists, which he claims
27:58was legal at the time.
28:00Dismissed from the army and banned from
28:02entering the US and Australia, he was
28:04forced to find himself in a new role, so
28:06he founded his own political party.
28:09>> I believe in democracy, you see? Because
28:11I myself lived through an authoritarian
28:13regime. I was a part of it. I think our
28:15people want a strong and decisive leader
28:18. That does not mean we can return to
28:20authoritarian methods of governance. I
28:22don't think we will ever go back to that
28:24.
28:25>> I am at a National Economic Council
28:27meeting with the chairman, veteran
28:29politician Luhut Binsar Pandjaitan,
28:31another former military man.
28:33He once commanded Prabowo Subianto in
28:35the elite Kopassus special forces unit.
28:38>> Yes, he is a good officer.
28:39>> Luhut is the President's chief economic
28:42advisor.
28:43Regarding palm oil plantations, over the
28:45past year the government has claimed
28:47quite a lot of land through a forestry
28:49task force.
28:50Is this land being managed properly? We
28:53will try to handle it in the best
28:54possible way. The government also needs
28:57to control the production of this type
28:59of palm oil because we earn a billion
29:01dollars from it. This is good for the
29:04people of Indonesia.
29:06Public attention was drawn to a video of
29:08lawmakers dancing in parliament.
29:13A few days later, mass protests erupted
29:15when those same parliamentarians
29:16received a pay raise.
29:19The amount of their benefits is 10 times
29:21the minimum wage in Jakarta.
29:24When the police ran over a man who was
29:26not participating in the protests and
29:28killed him, I witnessed the situation
29:30get even worse.
29:31A lot of anger had built up in the
29:33Indonesian public, which brought them
29:35out into the streets.
29:37Buildings were set on fire.
29:39At least 10 people were killed, and over
29:426,000 were arrested.
29:44Even being a comedian in Indonesia can
29:47be risky. In January, insulting the
29:50president became a criminal offense.
29:52Pandji Pragiwaksono is Indonesia’s
29:54leading stand-up comedian, who reached
29:57number one on Netflix. About once every
29:595 years, we remember what Prabowo did in
30:01the nineties, and then people just, I
30:03don't know, forget about it. If
30:05comedians are worried about what they
30:07can and cannot say in their jokes, then
30:09this country has serious problems. Later
30:11, Pandji was questioned by the police
30:14for 8 hours. And the history of
30:16President Suharto is being rewritten.
30:19At the end of last year, his reputation
30:21was officially rehabilitated.
30:23He has now been awarded the title of
30:25national hero.
30:27New, government-approved Indonesian
30:29history textbooks have just been
30:30presented by a close ally of President
30:33Joko Widodo and Minister of Culture
30:34Fadli Zon.
30:37The official history textbook project
30:38has been criticized for whitewashing
30:40Indonesia's dark past.
30:42Do you agree with that?
30:44>> No, it has nothing to do with that. It
30:47was not written by me or the Minister of
30:48Culture. It was written by historians,
30:51123 historians from across the country.
30:53>> But it was commissioned by your
30:54department.
30:56We are just helping.
30:58>> So, if it turns out that it glosses over
31:00, say, the events of 1998, then it is
31:02not your fault?
31:03>> No.
31:04>> But if that comes to light, then the
31:06responsibility will be with your
31:07department.
31:08>> That is the work of historians. It was
31:10written by historians. So we have
31:12nothing to do with it.
31:13>> One man who knows this history all too
31:15well is Marzuki Darusman, a former
31:17attorney general who exposed corruption
31:20and human rights abuses under the
31:21Suharto regime.
31:23How did you react to the news that
31:25authoritarian President Suharto was
31:27named a national hero?
31:29>> This is a harbinger of that period's
31:31return. So many signs point toward it.
31:34The revival of the army's role and the
31:36priority given to the police.
31:38>> Should the Indonesian public be worried
31:40?
31:41>> They should. A storm cloud is gathering
31:43, you know.
31:44In short, I think we are witnessing the
31:46birth, a continuation of the New Order
31:48led by his father-in-law.
31:49This requires rewriting history.
31:52So, the current era is starting to
31:54resemble the Suharto era. Yes, that’s
31:57right.
31:59Now, critics are trying to smear the new
32:02president's actions, and protests are
32:06breaking out.
32:08But if you look at the big picture, yes
32:11, Orlov has painted the situation with
32:14broad strokes, and, you know, it’s hard
32:16to find any optimism anywhere.
32:19What do you think about this?
32:22You think I’m the best person to find,
32:24so to speak, sources of inspiration, or
32:26optimism?
32:28It is much harder for me to say
32:29something good than to say something bad
32:31.
32:32I am a person more focused on negative
32:34factors.
32:35So you want to find optimism?
32:40Optimism for foreigners in Indonesia,
32:42but specifically on Bali, I don't see
32:45any optimism at all.
32:48Oh, by the way, we are launching a
32:50project in Bali, but we are registering
32:52it in Jakarta, in Indonesia, because we
32:54aren't registering almost anyone on Bali
32:56right now.
32:58It doesn't make any sense. And
33:02there was a new employee there.
33:04This time we held a general conference
33:06with representatives, like business
33:09leaders. There was a new employee who is
33:11responsible for sales.
33:14And he asked me, he personally asked me
33:17; he had been silent, just sitting there
33:19quietly, you know, lost in his own
33:22thoughts.
33:24And in the end, they gave him the floor
33:25and asked him to express his opinion
33:27about our strategy, or perhaps ask some
33:29questions.
33:30He personally asked me not to talk so
33:32much about the negatives in my videos
33:35regarding real estate in Indonesia,
33:37because he said about 14 clients had
33:40told him that Igor said real estate
33:42shouldn't be bought right now, and they
33:45didn't buy. So he lost exactly 14
33:48clients. That, as far as I understood,
33:50was because of my negativity. And you
33:52want some positivity from me? There.
33:54Well, what positivity? Register in
33:56Jakarta. Because there are still
33:58opportunities there. to do business, so
34:00to speak.
34:02Come into Indonesia with serious money
34:05for 3-5 years that can pay off quickly
34:08within the framework of some quick, what
34:11you might call, project.
34:14because I also relate to Indonesia, well
34:16, not exactly negatively, but with
34:19caution, because in a police state—I
34:21lived in a police state, and my
34:23relatives still live in a police state.
34:26I know what it's like. It leads to no
34:28good. It really won't lead to anything
34:30good in terms of freedoms, in terms of
34:32the ability to move money, in terms of
34:33earning potential. There will be an
34:35elite, there is already a ruling elite.
34:39And budgets aimed at, that is, financing
34:41the military, the militia, and the
34:44police, will increase.
34:48Accordingly, the number of police
34:49officers per citizen, the number of, how
34:51is it, the number of police officers per
34:53citizen will increase, or conversely,
34:55the number of citizens per police
34:56officer will decrease, like in Russia at
34:58one time.
35:00Right now it has already reached the
35:02point of one police officer for every
35:05three citizens.
35:07Accordingly, that is, essentially, what
35:10awaits Indonesia in the future is,
35:13possibly, as I see it, the
35:15nationalization of assets, including
35:17those of foreigners.
35:20We already see how easily foreigners are
35:22losing their assets. With that same ease
35:24, perhaps even more easily, they will
35:27lose them in the future. So that is a
35:29not-so-positive scenario, in general.
35:33>> I categorically disagree with you.
35:36I see China here.
35:41China and the president's desire to
35:43bring order to Indonesia following the
35:46Chinese scenario.
35:48So, regarding your employee from Jakarta
35:52. So, these 14 clients, what kind of
35:55clients are they? Where are they from?
35:58Who are they?
35:59>> Well, I didn't clarify those questions.
36:01I assume, considering what they do,
36:03these are people who still want to
36:06invest in real estate, but are looking
36:08for, so to speak, more reliable real
36:10estate investment schemes and the
36:12transfer of rights in any form.
36:15That is
36:15>> that is clear, it is not clear,
36:17>> based on their names.
36:19>> Are they all from the CIS or are they
36:21foreigners?
36:22>> No, these are CIS guys.
36:25>> CIS.
36:27The great and wisest follower of Hans
36:30Christian Andersen, Andre Frey, used to
36:33say in his sermons:
36:36"
36:36>> Russian-speaking investors are the worst
36:38investors in the world."
36:40I mean, like, the worst, because
36:41expectations, for example, of less than
36:4450%per year won't do, it doesn't fit.
36:46That's just uninteresting.
36:48>> That's, well, that's fun.
36:51>> No, well, that's funny.
36:54But if I talk to foreigners, they say, "
36:56Well, if you give us 7-8%, that's good.
36:58The most important thing is reliability
36:59." Okay. So, it's logical that you want
37:02English-spea
37:04investors. Logical.
37:05>> Okay. If that's it,
37:06>> well, maybe English-speaking investors
37:08don't want risks, while Russians throw
37:10money into a train car and think, "Well
37:12, maybe it will work out."
37:15I’m thinking, maybe something will work
37:16out, something will click.
37:19Yeah.
37:21Accordingly, if those guys didn’t want
37:23to invest, then I don't see anything
37:24wrong with that.
37:26I think you saved those 14 clients who
37:28were praying.
37:29>> I think so too, but thanks to his
37:30project, Andrei Frey leveled everyone,
37:32you see—both the CIS folks and the
37:34foreigners who invested—so everyone is
37:35absolutely unhappy right now. And you
37:37see what kind of work was done.
37:39>> Well, wait, don’t forget that all this
37:41money was invested in the Indonesian
37:43economy, in buying some land. It went to
37:45some landlords, it went into labor and
37:48so on. Consequently, the money came here
37:50and stayed here. But maybe that can be
37:53called some small positive, a ray of
37:55light in this dark hole, as you call it
37:57.
37:58Look, development itself is a very good
38:00process, because development creates
38:02jobs, development creates infrastructure
38:05around the objects being built.
38:08And when the person, the figure who
38:10created all this, leaves, what remains
38:12are jobs, infrastructure, salaries,
38:14growth in financial well-being, tax
38:16growth, and so on and so forth.
38:19That is what is, so to speak, the normal
38:21consequence of entrepreneurial activity
38:23, of legitimate business activity.
38:26In this case, the money did indeed go to
38:28landlords, through, so to speak, Andrei
38:31Frey, who became a middleman for
38:33transferring money from one person to
38:35another, from foreigners to locals, and
38:37for paying his own needs, paying various
38:40intermediaries and bribes, yes,
38:42primarily bribes, well, what supported
38:44bribery and graft, so to speak.
38:46I don’t support that—the fact that the
38:48landlords got their money—but probably
38:49anyone could have, in principle, bought
38:50that land at some point. I don’t know, I
38:52don’t see any positive consequences of
38:54Andrei Frey’s development, so I can’t
38:56say here that it was anything positive.
38:58>> Well, that’s because you think he was
38:59handing out bribes, even though there
39:01are no facts to support that.
39:02>> Yeah, yeah, of course. In the corrupt
39:05country of Indonesia, in the corrupt
39:06country of Indonesia, for your
39:07information, major projects never give
39:08bribes to anyone.
39:09>> And I think that here, in general, in
39:10principle, no one gives any bribes at
39:11all.
39:12>> Absolutely correct. Absolutely correct.
39:15If bribes were taken here, these drug
39:17situations wouldn't happen, where they
39:19arrest two citizens, for instance, from
39:22your familiar neighboring country of
39:24Chile, who are carrying 4.5 kg of
39:26cocaine.
39:27Or perhaps from Brazil, maybe even your
39:29girlfriend. Have you even heard this
39:31whole story or not?
39:33>> Why do you think I have a girlfriend
39:35from Brazil? I wanted to ask you, I
39:37wanted to ask you. Just listen to this
39:39story. In the footage, Brazilian
39:40national Tânia Santos is laughing and
39:42joking with the staff carrying her bags
39:44. But at the exit, airport security asks
39:46to inspect her luggage. The camera
39:48footage shows the staff going through
39:50her things, while she stands nearby and
39:52watches nervously. That is exactly when
39:54they find the shampoo bottles. These
39:55seven cosmetic containers turned out to
39:58hold 3.6 kg of liquid cocaine. She later
40:00confessed that she was promised fifty
40:02thousand dollars for successfully
40:03delivering the cargo to someone in Bali
40:05. But now, not only will she not receive
40:07that money.
40:08Indonesia has some of the strictest drug
40:10laws in the world, which means she faces
40:12life imprisonment or even the death
40:14penalty by firing squad.
40:17Well, besides that, the guys from the
40:20anti-narcotics department also seized
40:221.16
40:26tons of ketamine worth 192 million US
40:33dollars.
40:36They were tracking a tanker, and
40:41it was acting kind of suspicious.
40:44And so in that tanker, the police
40:46searched and found a pretty decent haul
40:49, you see, so how can you claim that?
40:52Good, positive things are being done,
40:55for heaven's sake, and yet you're all
40:57about...Corruption, corruption,
40:58corruption, corruption.
41:00Well, what,
41:01>> wait, wait. Uh, well, positive things
41:04are being done. Salaries for pensioners
41:06, pensioners are getting some kind of
41:08raise. Pensions for pensioners are being
41:10increased, social benefits are growing,
41:12and minimum wages are slowly rising too
41:14. As you say, André Frey flies to the
41:17island in person to hand you the money
41:19for your land. The value of your land is
41:21constantly growing. So, well, positive
41:23things definitely exist. No, there are
41:25no countries where only negative things
41:26happen. I don't know, even in North
41:28Korea, probably, if we look at it right
41:31now, or in Russia, could we find
41:32positive things?
41:34>> Well, there will be many comments
41:36regarding when André Frey actually flew
41:38in to hand over money for the land. You
41:40keep clarifying that this was all in the
41:42past and that he used to come and hand
41:44over investors' money back then. He's a
41:46Robin Hood. He is the Balinese Robin
41:48Hood. How do you not understand that?
41:50That is true.
41:50>> Orlov said: "They are trying to hide
41:53money." I just don't understand, how can
41:56you hide money in real estate? Tell me,
41:59you as an expert.
42:00>> Yes, you can easily hide money, oh my
42:02God, please, it's so easy to hide money
42:03in real estate. Everything depends on
42:04the legislation.
42:06If the law doesn't require, you see, the
42:08thing is, for transferring money, for
42:11moving money from one form to another,
42:14from cash to non-cash, or from cash to,
42:17I don't know, some kind of assets, right
42:20, accordingly.
42:23And when transferring this money, you
42:25have the banking system, these Cerberus
42:27types sitting there, monitoring your
42:28movements, so that God forbid you don't
42:30earn an extra thousand dollars this
42:32month, right, they always ask you for
42:34the purpose, in fact, and the source of
42:36funds.
42:37There.
42:38And if they don't ask—in some areas they
42:40simply don't ask—for example, as you say
42:42, to pull the blanket to Paraguay, so
42:44you roughly understand the real estate
42:46situation there, there are real estate
42:48agencies that will, damn it, exhaust you
42:50.
42:51That's how I'll put it. I mean, they
42:52really exhaust you with documents. But
42:54then there's the notary. If you process
42:56a deal through a notary, they, in
42:58principle, generally don't care about
43:00the origin of your money. What is this?
43:02What does that tell you? It means that
43:04if you have a million dollars and want
43:06to buy land, it's better to buy it in
43:08Paraguay through a notary, you see?
43:10Because no one will ask you about the
43:11source of the money. Well, although,
43:13with a million dollars, it's probably
43:15still suspicious anyway.
43:16Well, I'm exaggerating a bit, but you
43:18get the idea.
43:21That's why there are institutions
43:23through which, without confirming the
43:25money, you can acquire and swap one form
43:27of assets for another.
43:31Just like with securities markets, in
43:33some countries, stockbrokers don't ask
43:35you for proof of funds there.
43:38Some do ask, so accordingly, this is how
43:40money is hidden, transforming, as they
43:42say, like the law of conservation of
43:44energy, right? Energy is not lost, it is
43:46simply converted from one form to
43:48another. It's the same thing,
43:50>> only without resistance.
43:51>> Yes, without resistance. I understood
43:54the idea very well. Pulling the blanket
43:56of investors from Bali to Paraguay,
43:58that's all clear. Let me add something
44:00else here for you.
44:01>> Bali's immigration office has started
44:03sending letters in advance to hotels and
44:04apartments with a schedule of
44:05inspections for residents. On the
44:07appointed day, officers go around the
44:08rooms and check the actual address
44:10against the address listed on the visa.
44:12If everything is okay, there is no
44:13reason for concern. But if you don't
44:15match, or if there are other questions
44:17about the visa, they might take your
44:19passport and issue a summons to the
44:20immigration office.
44:22>> What have you heard about the address
44:24inspections lately?
44:26Did they suddenly start going directly
44:29to addresses?
44:30>> To be honest, I haven't heard anything
44:32yet about them starting to go to
44:34addresses. But once again, the
44:36immigration service used to do it once a
44:38year, without any notifications.
44:40In any case, they check every major
44:42accommodation facility, yes.
44:46So, honestly, this is the first Asian
44:49country I’ve heard of that just gives
44:51you a time and schedule for when they
44:54will check, which is, well, super cool.
44:58You can just take advantage of the
44:59opportunity and not be at the hotel at
45:01that time, because you aren't required
45:03to stay in the hotel constantly.
45:06But those who were there, so to speak,
45:08usually ran into problems afterward,
45:10especially if they had a KITAS, because
45:12you know, yes, that with a KITAS, your
45:14address in the KITAS must match your
45:16actual place of residence.
45:19If you are living in a different place,
45:22you can stay there, but for a limited
45:24time, say, a month, yes, up to three, as
45:27they say.
45:31Well, you see what wonderful people the
45:34immigration service in Bali has.
45:36From
45:37>> you always find the positive, you always
45:39find some sort of positive.
45:40>> Well, I have to, because this truth from
45:43you, so to speak, already causes people
45:46to, I don't know what to call it. Well,
45:48I’ll read the comments further on, of
45:50course, and you’ll understand there.
45:54Please explain, regarding the
45:55contribution, yes, I haven't found any
45:57clarification anywhere regarding a
45:59specific deadline for contributing the
46:01authorized capital.
46:03So, just the day before yesterday, new
46:06rules for foreigners came into effect,
46:09according to which the minimum
46:11authorized capital is 2.5 billion. Is
46:14that right?
46:15>> No, no, not at all. You, you crumbled,
46:17you started drifting, like all of us
46:19started drifting, because we foreigners
46:20don't understand a damn thing. White,
46:22educated white people.
46:25So, we have a minimum authorized capital
46:28, which depends on the type of activity
46:32.
46:32And in general, this minimum authorized
46:35capital for practically all types of
46:37activities currently stands at 10
46:40billion rupiah.
46:41And just as before, remember, we talked
46:43about the fact that, in principle, there
46:45are no deadlines for contributing this
46:47authorized capital.
46:49Expected contribution deadlines, which,
46:51in general, are not clearly recorded
46:52anywhere.
46:54That was the main opportunity for
46:55foreigners to open these fictitious
46:57companies, pile 10 KITAS visas onto them
46:59, and, in general, live peacefully with
47:02un-contributed authorized capital and no
47:04bank account.
47:05Even now, clarifications have been added
47:09that there are two concepts. The first
47:12concept is the required authorized
47:15capital. The second is the actually
47:16contributed authorized capital. And this
47:19actually contributed capital.
47:22Imagine a situation where immigration or
47:25the police summon you regarding your
47:27company, or the OSS asks about your
47:29business activities and poses the
47:32question: "What paid-up capital have you
47:34contributed?"
47:37This is a very common situation in Bali
47:39, a kind of hook they use to essentially
47:41threaten you with jail time right then
47:43and there, right?
47:45Or, accordingly, to extract about 5,000
47:47dollars from you, maybe more, maybe
47:49three.
47:50Although, it has become a bit less and
47:51simpler now.
47:53And, uh, you say: "100,000 Indonesian
47:55rupiah." Yeah.
47:58So, this minimum required paid-up
48:00capital that they will be asking you
48:03about is not less than 25%of your 10
48:06billion, meaning at least 2.5 billion.
48:10It is considered that if you have
48:12contributed 2.5 billion, you are now
48:14operating within the law, and in general
48:16, no one can make any claims against you
48:17.
48:19At least this clarification has appeared
48:21. That is very cool, because for some
48:23businesses, 2.5 billion is already
48:25enough.
48:26For some small developers, 2.5 billion
48:29is enough to run through the company and
48:32live just fine.
48:34What's the problem?
48:35If you have 2.5 billion and you just
48:37want to run it through the company, pass
48:40it through and take it out—I don't know
48:42, through the back door—just by showing
48:45cash flow, you can't do that, because
48:47there is a minimum requirement for the
48:49contribution and, uh, retention—I don't
48:52know what to call it exactly—of these
48:54funds, these assets, in your bank
48:56account for at least 12 months.
48:58If you want to withdraw this money
49:00within the 12-month period, you have to
49:02withdraw it as dividends subject to a 10
49:03%tax.
49:04Meaning, here you lose 250 million
49:06Indonesian rupiah, which is unpleasant.
49:10>> A question from our dear subscribers.
49:13If a foreign investor bought an existing
49:16PT PMA by changing the shareholders, but
49:19the company did not make the declared
49:22investments, who bears the
49:24responsibility for the unfulfilled
49:26investment obligations: the previous
49:29owners or the new ones?
49:34Uh.
49:36That is, by the way, a very good
49:37question.
49:38It is a very good question, think about
49:40it, because you love telling me that I
49:42haven't prepared and that I don't
49:43understand anything.
49:45Now we'll see what you understand.
49:47>> What I understand. So, let's take a look
49:51. In the authorized capital, the
49:53original owners specified, specified,
49:55the contribution of this. Come on, come
49:58on, you think about it, think, and I'll
49:59just throw a little bit of information
50:01your way. I am supposed to understand
50:03these issues, after all.
50:06So, is it possible to buy a company,
50:08bring in shareholders, and not change
50:10the KBLI?
50:12If one shareholder leaves the company
50:14and another shareholder enters,
50:17>> is it required to change the KBLI?
50:21So, the legislation says no.
50:25In itself, a change of founders or
50:28shareholders of a PT PMA in Indonesia
50:30does not require a transition from the
50:332020 KBLI to the 2025 one.
50:36If some shareholders leave the company
50:38and others join, the legal entity
50:40remains the same.
50:42The company's business activities do not
50:44change, and the purpose and scope of
50:46activities in the articles remain the
50:48same. Existing licenses remain valid.
50:51Yes. Exactly right.
50:53>> I have a question in that case. Well, do
50:55you want to answer already?
50:57>> No. No, you have a question, go ahead.
50:59>> No, I meant regarding the first question
51:01, you remembered the first question, and
51:03the second question will be the
51:04following.
51:06What if there is a company, a person
51:09bought such a company, yes, and is
51:11listed as its director, but does not
51:14have a KITAS as a director.
51:20>> Right.
51:22The company files reports every quarter
51:25.
51:28>> And in this case, the paid-in—or rather
51:31, the unpaid—authorized capital, I
51:35understand, is not mandatory here
51:38because the director doesn't have a
51:41KITAS, right?
51:45>> Okay. Yes, I roughly understood. I
51:47roughly understood the question, yes.
51:49So, the responsibility for the paid-in
51:52authorized capital will fall on the
51:54current founders of the company.
51:57That's the first thing.
51:58Because they are the ones who will be
52:00asked this question.
52:02They can, of course, try to shift this
52:04responsibility to the initial founders,
52:06but when they process the documents for
52:09changing the founders, they will also
52:11have to confirm that the authorized
52:13capital has been paid.
52:15That's the first thing. Second,
52:16regarding the lack of a KITAS and at
52:18what point it is important.
52:20Indeed, the absence of authorized
52:22capital—and the main risk of the absence
52:24of authorized capital—is, in principle,
52:27the immigration services or the police,
52:29who could, so to speak, physically catch
52:31you committing some act and ask: "You
52:33have a company, great," and they will
52:35naturally check all the company's
52:37documents.
52:38This is, so to speak, their final
52:40argument: "How much money has been paid
52:42in?"
52:44Therefore, if you don't have one and the
52:47company is operating, your main risk is
52:49that for any registration actions of the
52:52company or the need for direct actions
52:55in the interests of the company as a
52:57director, you cannot perform these
52:59actions because you don't have a KITAS—
53:02the supporting document that you
53:04generally have legal status in Indonesia
53:07and that your company, as an Indonesian
53:10resident,
53:11has granted you this legal status.
53:14That is why, if you don't have a KITAS,
53:16the authorized capital hasn't been paid
53:18, and you live abroad and, in principle
53:20, never fly to Indonesia, then, in
53:22general, there are no risks for you from
53:24any side whatsoever.
53:26>> Yes.
53:28But, uh, basically, if a person bought a
53:31company, remember I asked you: "Maybe it
53:33makes sense to buy up companies with
53:36these interesting KBLAs, or whatever
53:38they're called?"
53:41Armica it was.
53:42>> Yes. And you said: "Nah, that's all crap
53:45, nobody needs that."
53:47Now the moment of realization is coming
53:50, and I think you'll agree yourself that
53:52buying a firm with these old KBLA
53:54histories probably does make sense now.
53:59So, if a person bought such a company,
54:03became a founder, is listed there as
54:06director, but doesn't have a signature,
54:10just files zero reports and so on, then
54:14effectively there is no Kitos and no
54:17obligations, no problems.
54:23Well no, that's not quite right, because
54:26as for there being no obligations to the
54:29migration service, you're probably right
54:32. There are problems with business
54:34management, because every managerial
54:35action requires confirmation in the form
54:37of a Kitos.
54:38Every managerial action, changes to the
54:40structure, opening a bank account,
54:42transferring money.
54:45If you have an account, for example, and
54:46you need to top it up, transfer money,
54:48and at some point they block your bank
54:49account for any reason, I don't know,
54:51for any damn thing, you get it, because
54:52it's a standard story.
54:54You're still. I understood, I understood
54:56, I understood. You just haven't woken
54:58up yet. Once again, for the third time,
55:00for those in Paraguay.
55:03So, the value is the company itself with
55:06the old KB.
55:08documents.
55:10>> Yes, a person who doesn't want to open a
55:13Kitos, but wants to register these
55:15companies to themselves, just takes and
55:18registers as a director there.
55:22But the companies are dormant; they take
55:2510, 20, 200 of them, all 19,000 of these
55:27companies, and register them to
55:29themselves.
55:32They don't issue a Kitos, they are just
55:34a nominal director, filing reports
55:36everywhere.
55:39Looking ahead, with the perspective that
55:42these companies can later be transferred
55:44to people who won't be able to form such
55:47companies in the future.
55:49See, that's the point.
55:51And they flew in here on an ordinary
55:53tourist visa, without any Kitos and
55:55without any obligations.
55:58This,
55:58>> it has no value, you don't understand.
56:01It has absolutely no value. You just
56:03think it has value. Uh, these documents
56:05, they have no value for
56:09three reasons. The first reason, where
56:11is the guarantee that
56:15the current decision that these
56:17companies are not being touched for now
56:20won't change for a full transition to
56:22KBI 2025.
56:25Second, for certain types of business
56:27with current KBI, for example, 6811
56:30Development, you won't be able to
56:32conduct business directly in Bali,
56:34because this code doesn't really exist
56:37anymore, and they won't issue documents
56:40for this company.
56:42They just won't issue them, let's say,
56:45for
56:47hotel operations. Simply because such a
56:50KBI doesn't actually exist anymore. They
56:52will force you to switch to new KBIs,
56:55meaning they won't give you building
56:57permits under these old KBIs. You have
56:59them. If you already own property and
57:01everything is registered correctly,
57:03great. If you need to perform any
57:04registration actions, you will simply
57:06have problems.
57:07>> In short, you
57:08>> especially with new projects.
57:09>> Yes, I understand. You just went and
57:10ruined the entire business scheme. The
57:12idea was to
57:14>> have colorful balloons in your head once
57:16again instead of gray matter.
57:20Meaning you need to return to operating
57:22with gray matter, because there is no
57:24logic in this.
57:25You can register a company properly
57:29under 68111 or 70209 in Jakarta and have
57:32no problems at all and conduct business
57:36legally
57:37>> on the right topics.
57:38>> Balloons, you say? Yes.
57:40>> Well, they...I didn't just say balloons
57:41. I said different colors.
57:43>> My head is full of different colored
57:45balloons.
57:46>> Not rainbow ones. Like, imagine this
57:49rainbow.
57:49>> Okay. But I will repeat the question for
57:52the fourth or fifth time. Um.
57:56Activity regarding
57:57>> activity,
57:58>> are there any problems? No. There are no
57:59problems. There are no problems.
58:01Problems
58:01>> all of this stuff. I just needed to
58:04clarify that.
58:05>> Have you seen what happened in Uluwatu?
58:07I went there a week ago, and I still
58:09can't get over how sad I am, because I
58:11don't think I've ever seen so much
58:13construction anywhere else in Bali.
58:15Where there used to be green meadows,
58:17where cows grazed. Now there are just
58:19mountains of trash, hundreds of
58:20construction vehicles, and a complete
58:22lack of greenery. The roads, which
58:24weren't great to begin with, have now
58:26turned into some kind of white
58:27construction gravel. You drive at 2 km/
58:29h because going any faster is simply
58:31impossible. A tractor is heading
58:32straight at you. Everywhere there were
58:34just thick layers. In short, it's very
58:36sad.
58:37I never lived in Uluwatu, but every time
58:39someone came to visit me in Bali, we
58:41spent a lot of time there because there
58:43are beautiful cliffs, beautiful beaches
58:44, and it was great.
58:46And when someone flew in for a vacation
58:48, I always advised them to stay right
58:49here. Yes, for a year of living in Bali
58:51, I went to my favorite beach every
58:53single weekend, but for the last few
58:55years, it looks like this. Yesterday I
58:57also saw a Reel saying that the
58:59viewpoint hill at Balangan Beach is now
59:01closed, too, because new construction is
59:03starting there. It's a good thing I
59:05managed to see it.
59:06>> Oh, see, you got to look at it, enjoyed
59:10it, got your fill,
59:12>> got your more than 10%annual return net
59:15. Ah,
59:17>> actually no, I’ve never received passive
59:19income from real estate in Bali.
59:23Well, okay, in that case, Erik Hov asks
59:26you directly: "Give at least one example
59:30.
59:31Name which apartments or complexes are
59:34trying to sell way below market price."
59:38>> Well, that would be an advertisement,
59:40right? Or even bad publicity, I don't
59:41know. I can't just go around giving out
59:44such figures, like, names of places.
59:47Just take it, go somewhere, I don't know
59:50, go on Bali.com and see what's for sale
59:52there.
59:54>> I’ll support you in this rare moment.
59:57>> I'm selling my villa in Bali for $
59:59100,000 less than I bought it for. It
1:00:01just happened that way. 3 years ago, it
1:00:03cost me 399,000.
1:00:05Right now, for those watching, I'm ready
1:00:07to let it go for 290,000, even though on
1:00:09the website it’s still listed for much
1:00:11more.
1:00:12>> So there are such people, uh, you aren't
1:00:13just making groundless claims. Tell me,
1:00:16please, what's the story about the 38%
1:00:18of projects having a construction delay
1:00:21of more than a year? Where did you get
1:00:23those figures from?
1:00:25>> But I sent you an official source. Where
1:00:28did you get these figures?
1:00:29>> Answer the people. You, you don't need
1:00:31to send that to me.
1:00:32>> Well, honestly, I don't remember the
1:00:33official source right now.
1:00:35People told me 3-4 weeks ago, or
1:00:36whenever it was, a couple of months ago
1:00:38, that I’m always making groundless
1:00:39claims.
1:00:40So now I only send you everything with
1:00:43sources.
1:00:43>> Is that clear? Who screwed up? The
1:00:45reporter. I see.
1:00:48You say, writes a person with some ID,
1:00:51doesn't matter.
1:00:54"Tourism is dead, planes aren't flying.
1:00:56" But why then are planes landing at the
1:00:59airport every minute? Cafes are packed,
1:01:01roads are jammed with trucks carrying
1:01:03materials to endless construction sites
1:01:05. How can you explain that? And this
1:01:07girl is saying the same thing too.
1:01:08Construction sites are just growing like
1:01:11mushrooms, probably, after the rain.
1:01:13And you say everything is dead. Well,
1:01:17how can that be?
1:01:20>> Well, really, the Uluwatu area
1:01:22specifically is being built up,
1:01:23developed, because in the Uluwatu area,
1:01:25well, I’ll give a brief retrospective,
1:01:27but just a year ago, land in the Uluwatu
1:01:29area was still significantly undervalued
1:01:31.
1:01:33If you remember, many, many developers
1:01:35rushed there to buy up, because it was
1:01:37effectively the last stronghold, so to
1:01:39speak, where you could still buy at an
1:01:40adequate price and start building.
1:01:44I believe the construction process in
1:01:46Uluwatu will take about the same time as
1:01:48the development process in Ubud and
1:01:50Canggu.
1:01:53That is, a period of about 3–5 years,
1:01:55because in these areas I mentioned,
1:01:57Canggu and Ubud, there are no more
1:01:59construction sites, simply because the
1:02:02base entry price has increased.
1:02:05As for the documents of those building
1:02:07there, there are big questions, too.
1:02:09They might still be stepping on the same
1:02:11rake, because those who have money are,
1:02:13in general, still trying to invest it in
1:02:15Bali.
1:02:17God willing, everything will be fine
1:02:19with their documents and history won't
1:02:20just repeat itself. They are hiding
1:02:22money. Hiding it.
1:02:25>> Well, you always say that many people
1:02:27with, so to speak, "easy money" flew to
1:02:29Bali and started throwing it around.
1:02:31But it's quite possible that some of
1:02:33that "easy money" is there, too.
1:02:35>> Well, reckless people have reckless
1:02:37money, because where would an ordinary
1:02:39person get $ 200,000–$ 500,000 in their
1:02:41pocket?
1:02:42It's clear that God provides, but not to
1:02:44everyone.
1:02:46Well, first of all, where would an
1:02:48ordinary person even get the idea to
1:02:51invest in real estate in Indonesia, on
1:02:53Bali? I mean, that's where it all begins
1:02:55, so to speak. Yes.
1:02:58>> I agree, I agree with you completely.
1:03:02Kirill Nikov, let's say we lease a plot
1:03:05in Bali for 30 years and build a villa
1:03:09there.
1:03:10After 30 years, the landlord may demand
1:03:13that the plot be returned to its
1:03:14original state, demolish the building,
1:03:17and remove the foundation. Has anyone
1:03:19thought about that? Dismantling will
1:03:21cost quite a lot. Please think about it
1:03:24.
1:03:24>> I will think about it.
1:03:27Every contract with a landlord that I
1:03:31have seen includes a clause that if the
1:03:35lease is not renewed within two weeks,
1:03:39you, as the temporary owner of that plot
1:03:43, must return it to its original state.
1:03:48Every contract includes this.
1:03:51Therefore, yes, you are absolutely right
1:03:53, do not buy this; it is not a real
1:03:55estate investment, it is just buying a
1:03:57lease agreement for crazy money, most of
1:03:59the time.
1:04:03>> But wait, it's not profitable for the
1:04:05owner if the villa built on their plot
1:04:06starts being demolished, right?
1:04:09>> Why not profitable?
1:04:10>> Why demolish it? You just have a
1:04:12finished villa. It just becomes yours.
1:04:16Why would you demolish it?
1:04:20Look, well, okay, you don't have to tear
1:04:23it down; you could reach an agreement
1:04:25with the owner—the "old owner," in
1:04:27quotes—to use the villa for commercial
1:04:30purposes, and then the villa becomes an
1:04:32asset.
1:04:34Possibly, but basically, the law and
1:04:37what is always written is that you have
1:04:39two weeks to move out and, well, carry
1:04:41out the demolition.
1:04:43If you do the math, you'll realize that
1:04:46carrying out the demolition isn't
1:04:48profitable for party number one in the
1:04:51contract, the tenant, because it’s just
1:04:54money thrown to the wind.
1:04:56And it turns out that, in effect, this
1:04:58clause leaves the villa on that plot of
1:05:01land.
1:05:02>> I mean, there haven't been any
1:05:04precedents where someone actually went
1:05:06to court and demanded: "Please tear down
1:05:08the crap you've built."
1:05:11Oh, no, no, no, of course not.
1:05:14It just means that you have two weeks to
1:05:16clear out, and after that, all rights to
1:05:18everything on the property pass to the
1:05:20owner.
1:05:21That's it.
1:05:22>> Kyle Vox asks, hopefully, what business
1:05:24is good to get into on Bali right now if
1:05:27you don't have much money, but you still
1:05:30need to earn a living to stay here. What
1:05:33if a person is ready to work legally or
1:05:35in a gray area with local partners? What
1:05:37kind of business can you do legally if
1:05:39you don't have much money? Well, look,
1:05:41right away: "not much money" and "
1:05:43working legally" don't really mix. You
1:05:45need to find a way to get the authorized
1:05:46capital to do it fully legally, right?
1:05:48So, let's still add a little bit of,
1:05:50shall we say, darker shades to this, in
1:05:53any case.
1:05:55That's why I've probably already talked
1:05:58about this renovation business.
1:06:01And I believe this is something of a
1:06:03future—maybe even a past, but a future
1:06:06for the island—because the measures for
1:06:09foreigners are quite strict, and many,
1:06:12many businesses in the future will be
1:06:14built on proper business integration
1:06:17with the locals. That’s what I think.
1:06:20So, in any case, you need a local
1:06:22partner who will represent the business
1:06:24, one that you can finance, and what
1:06:26kind of business can you finance as a
1:06:28foreigner with a small amount of money?
1:06:31Something like that.
1:06:33>> Got it. More empty talk.
1:06:36Come on, maybe you can give at least
1:06:38some advice on this matter?
1:06:40>> You probably know that a joint-stock
1:06:42company has something called a general
1:06:44meeting of shareholders. Various
1:06:45decisions are made at this meeting of
1:06:47shareholders.
1:06:49Moreover, by law, decisions are most
1:06:52often made by a simple majority, that is
1:06:54, 50%plus 1 vote, or there is a special
1:06:57proportion, a qualified majority, such
1:07:00as 75%and so on.
1:07:02And everything, it would seem, should be
1:07:03easy and simple.
1:07:05But the Ministry of Justice suddenly
1:07:07decided for some reason that a decision
1:07:10from such a meeting of founders must be
1:07:12confirmed by all participants, for which
1:07:15it sends an email to the address of each
1:07:17founder, which they must click to say
1:07:19that yes, they agree.
1:07:23Naturally, if a vote took place where
1:07:25there was some conflict between the
1:07:27founders and the decision was made not
1:07:30by a 100%vote, but, let's say,
1:07:32conditionally, by 50%plus, then there
1:07:34are unhappy founders who will not want
1:07:37to press that button.
1:07:39So, this is the most interesting part.
1:07:40If not all 100%press the button, then
1:07:42the decision is not adopted. It is
1:07:45simply not registered in the Ministry of
1:07:46Justice system. So, it is quite
1:07:48interesting like that. The Ministry of
1:07:50Justice effectively obliges everyone to
1:07:53make decisions only by a 100%vote, yes,
1:07:56by 100%agreement.
1:07:57>> Um, well, the button thing is a little,
1:08:00a little bit wrong.
1:08:03In this case, each founder signs the
1:08:05document.
1:08:06Well, I, by the way, never thought about
1:08:08the fact that any of the founders would
1:08:10not sign it.
1:08:11Within, you know, within, uh, within
1:08:15what?
1:08:17Within this process that we are now
1:08:19doing every year, because this year we
1:08:22have already submitted about a hundred
1:08:24of these reports.
1:08:26Now, every year in April, we will have
1:08:28to submit this report on the annual
1:08:30meeting of founders along with the
1:08:32annual report.
1:08:34A lot of work has been done.
1:08:36And so far, in all the companies that,
1:08:39uh, that we, accordingly, managed, there
1:08:42were no problems in them, because they
1:08:44have a very simple structure.
1:08:48One main founder and a second one, in
1:08:50general, uh, without rights, yes,
1:08:52without rights and there with a minimum
1:08:54number of rights, there with a maximum
1:08:56of 10%, or even fewer percentage points
1:08:59of votes.
1:09:00That is why we have not yet encountered
1:09:02any problems with this. But this is an
1:09:05interesting point of view, because I had
1:09:06not thought about it. And indeed, I
1:09:08think that in this situation, one needs
1:09:11to submit written clarifications to the
1:09:14Ministry of Justice regarding the
1:09:16position of a specific person so that,
1:09:19at the very least, they accept this
1:09:21report. Or, if again, there are also
1:09:23missing people; in Indonesia, sometimes
1:09:25there is just a missing shareholder,
1:09:26they don't communicate with anyone, the
1:09:28person has just disappeared somewhere.
1:09:30So how do you actually get a signature
1:09:31from them? That is also a big question.
1:09:33Therefore, I think that these meetings
1:09:36of founders or shareholders, in the
1:09:38modern world, are generally conducted in
1:09:41the presence of a notary. But
1:09:43considering that this scheme can be done
1:09:46remotely, well, of course, some
1:09:47questions may arise, these reports may
1:09:50get stuck, or additional checks by the
1:09:52Ministry of Justice might be carried out
1:09:54.
1:09:55I assume that this will certainly
1:09:57require some additional clarifications
1:09:59and extra paperwork, because the
1:10:01procedure was only introduced this year
1:10:04, and during the 3-4 months of the
1:10:06project's implementation, no one really
1:10:08understood what to do or in what form to
1:10:11submit it.
1:10:12That is, we went through this process
1:10:14together with the market, so, well,
1:10:16perhaps next year I will answer it more
1:10:18competently when we understand what they
1:10:21ultimately want from us and whether they
1:10:23have provided for this process, for
1:10:25example, or not.
1:10:27>> Our dear subscribers, a huge request, uh
1:10:30, viewers, please subscribe to the
1:10:33channel.
1:10:35You see that Colin Farol in his Paraguay
1:10:37chronically doesn't think often enough,
1:10:40and we still need to save him, because
1:10:43we can no longer get concrete answers to
1:10:45certain questions.
1:10:48One more chance, Mr. Tweet Star.
1:10:52And these villas that are rented out
1:10:54under the table, can you do a mutasi
1:10:57alamat for a KITAS?
1:10:59What is that?
1:11:03Oh my God, you're immersing me in the
1:11:05Indonesian language now. For a person
1:11:08who lives in three languages, you're
1:11:10immersing me in a fourth language. Hmm.
1:11:14>> The language doesn't suit you anymore.
1:11:15The language doesn't suit you anymore.
1:11:17>> Go ahead. So, listen, what legal system
1:11:19do you live in? I live in several, it
1:11:21turns out. Hold on, give me a second,
1:11:23let me check. I'll look specifically at
1:11:25what that is.
1:11:26>> Mutasi Alamat, something or other.
1:11:30It's something very simple, but at the
1:11:32same time, you see, I just forgot
1:11:34>> that word.
1:11:37>> In parallel, while you're looking, that
1:11:3938%of unfinished construction is that 5
1:11:41%of the market you know about.
1:11:44It's good that you finally said that a
1:11:47non-specialist in real estate
1:11:49systematically gives people their own
1:11:51maximally limited picture of the market
1:11:54, far from reality.
1:11:56There. Take that. Well, it's good that
1:11:58you said it. See,
1:11:59>> take it, take it.
1:12:01>> Oh, come on, that didn't hurt. You can
1:12:02do better. And Mutasi Alamat is a change
1:12:05of address. There I am. Alamat. Alamat
1:12:07is the word. And let's have the question
1:12:09one more time.
1:12:11>> Can you do this Mutasi Alamat for those
1:12:13villas that are rented out under the
1:12:15table?
1:12:17>> Yes, of course, of course. They don't
1:12:19ask, they don't request documents.
1:12:21Documents about the legitimacy of the
1:12:23construction. They just ask you for an
1:12:25address. That's all. They don't attach
1:12:27any additional documents to that address
1:12:30for you. But if he has an HGB or an SLF
1:12:32, on what grounds is it being rented out
1:12:35? No, they just need your dirección, as
1:12:38they say here, your location.
1:12:41>> It turns out there are a huge number of
1:12:43housing options on Facebook for $ 200.
1:12:46I actually found a house between Canggu
1:12:48and Ubud for $ 200.
1:12:50Why pay $ 500,000 for housing if you can
1:12:52rent for $ 200?
1:12:54Come to your senses.
1:12:56Colin, wake up, we have $ 200 here. How
1:12:59much do you pay for your housing?
1:13:02>> 150.
1:13:03>> I have no further questions. Next.
1:13:07>> Yes, I live, like, in a small town
1:13:09inside the city. Overall, in a good
1:13:11location.
1:13:12>> And prices in Ubud are falling, which is
1:13:15not surprising. It was always mostly
1:13:17settled by enlightened people and those
1:13:19with no money. What is there to do
1:13:21constantly, other than sit in traffic
1:13:23jams? There are more convenient places
1:13:25to live. Yes, we see that there is, uh,
1:13:28I wanted to say Pakistan, Paraguay.
1:13:31There is Paraguay. A more convenient
1:13:33place. So, everyone, please,
1:13:36>> a more convenient place.
1:13:38>> No, Paraguay will probably never be. No
1:13:40, well okay, maybe in 20 years Paraguay
1:13:42will be a more convenient place.
1:13:44Well, you’ll work on your YouTube
1:13:46channel, pull all the attention you
1:13:47possibly can from Bali, and then it will
1:13:49become a convenient place, because you
1:13:50see, people say there’s nothing left to
1:13:52breathe in Ubud.
1:13:53They are burning trash everywhere. Do
1:13:55you happen to know why the authorities
1:13:57can’t solve the problem of trash burning
1:13:59and air pollution? Uh.
1:14:02>> I don’t know, to be honest, why Bali
1:14:05can’t solve the trash problem.
1:14:07I assume they just don't give a damn.
1:14:09And the main trash that concerns them
1:14:11now is the trash that will come to you
1:14:13in the off-season.
1:14:15>> Alright, I see I won’t get any
1:14:17positivity from you. Then please clarify
1:14:20for Stanislav Lysenko, what is this beef
1:14:23you have with Nilukh?
1:14:25Could someone tell us briefly? You don’t
1:14:28even have to be brief.
1:14:30>> No, well, I will definitely tell it
1:14:32briefly, because we need to start
1:14:34wrapping up today’s broadcast.
1:14:36>> And the battery? How much
1:14:38>> battery?
1:14:40Well, look, my internal battery is at
1:14:42about 90%, but the external one is at 15
1:14:45%.
1:14:46>> Uh-huh. Well, let’s go for now.
1:14:48>> We are really, really squeezing it out.
1:14:50>> Uh-huh.
1:14:51>> Oh, yeah, there wasn’t any real beef.
1:14:54They just didn’t like, I assume, they
1:14:56didn’t like our business, the type of
1:14:58business we run and our publications we
1:15:00used to attract clients at the time.
1:15:03And we are, after all, people of, well,
1:15:05marketing. We, accordingly, these
1:15:07stories about the 0.5%
1:15:10tax, we, so to speak, started adding
1:15:13them, adding, adding.
1:15:15And she, and her, so to speak, people
1:15:18who were reporting our stories and, what
1:15:20do you call them, Instagram posts, right
1:15:23?
1:15:25Well, accordingly, they really didn't
1:15:27like it, and they started reporting us
1:15:28to immigration, to the local jelantik
1:15:30directly.
1:15:31We were basically getting different
1:15:33reports and reposts almost every day.
1:15:35Yeah. And at some point, she apparently
1:15:39pushed it too far; she liked—or rather,
1:15:42didn't like—this post about the 0.5%,
1:15:46where she criticized how we attract
1:15:49foreign capital and encourage people to
1:15:52open businesses, deceiving them, because
1:15:55the 0.5%—as she wrote: "you dirty pigs"
1:15:59—is for local businesses, for small
1:16:02businesses.
1:16:04But for you, shitty bastards, something
1:16:06like that, yes, you should pay in full
1:16:08to us in Bali, and so on and so forth.
1:16:12I ask all, so, all relevant departments
1:16:16to check, well, from the roots, like, to
1:16:19the very bottom, so to speak, to check
1:16:23this business for the presence of
1:16:27>> violations.
1:16:28>> For the presence of violations.
1:16:30And we went through an audit, and they
1:16:33didn't find any violations, because,
1:16:36well, firstly, we run our business more
1:16:39or less normally, we pay taxes every
1:16:41month, submit reports, increase our
1:16:44authorized capital, we have Indonesian
1:16:47employees, and so on and so forth.
1:16:50There are, of course, some flaws, yes.
1:16:52And plus, at that moment, we were, so to
1:16:55speak, on a system of helping the state
1:16:58through voluntary contributions to the
1:17:00treasury.
1:17:03>> Bali authorities finally noticed the
1:17:06shady schemes, and specifically the
1:17:09scheme of foreigners circumventing
1:17:12investment laws. What are these white
1:17:15pigs doing? They register a real estate
1:17:18construction business under KBLI code
1:17:216811.
1:17:23But after construction is finished,
1:17:24instead of selling the properties, they
1:17:27turn them into tourist villas and rent
1:17:29them out by the day. This type of
1:17:30activity requires different permits.
1:17:33And the Bali authorities long ago said
1:17:36that the small tourist villa sector is
1:17:38reserved for local entrepreneurs.
1:17:42Therefore, please, do not break the law
1:17:45and work with the police.
1:17:48>> Boo, everything will be fine. Everything
1:17:49will be fine.
1:17:51>> Besides all this, I came across a very
1:17:53interesting article,
1:17:57which a lawyer here in Bali published.
1:18:02To be honest, my mood completely
1:18:03vanished.
1:18:04And why?
1:18:07Because it turns out that firing an
1:18:10Indonesian is a whole, whole, whole, not
1:18:12just a procedure, but a very expensive
1:18:17>> undertaking.
1:18:19>> An undertaking, yes, because if he
1:18:21worked for 1-2 years, you have to pay
1:18:23two months 'salary, if 4-5, five
1:18:25salaries.
1:18:26If they have worked for more than 8
1:18:28years, you have to pay them nine more
1:18:30salaries. Plus compensation for some
1:18:32kind of vacation and so on and so forth
1:18:34. How much?
1:18:37>> Don't forget the religious allowances,
1:18:39the bonuses you pay every year, which
1:18:41usually surprise people, like, how come
1:18:43?
1:18:44But in the form of a thirteenth salary,
1:18:46you pay religious bonuses, which you
1:18:48also have to compensate for later.
1:18:49>> Give me numbers.
1:18:50>> Directly related to, so to speak,
1:18:52investments.
1:18:53>> Give me numbers. If you have, uh,
1:18:58an Indonesian who is subject to layoff,
1:19:02right, how much will it cost to fire
1:19:05them?
1:19:08>> No, look, there is what they want, and
1:19:09then there is actual practice. Standard
1:19:11practice to reach an agreement with an
1:19:13Indonesian and part ways amicably is to
1:19:16pay them about one more salary. Well,
1:19:18sometimes two to three. That is, what
1:19:21I've seen, what is applied in practice,
1:19:23and what foreigners always squeal about
1:19:25, like, why should I pay?
1:19:27But in reality, the Indonesian knows
1:19:29that the labor code and labor laws are
1:19:32behind them, and in case the foreigner
1:19:34starts to put up a fight, they will just
1:19:36open their employment contract, and that
1:19:39contract will state exactly how much
1:19:41they should receive monthly.
1:19:44They will go to court, get all their
1:19:46legal fees, plus on top of that, all
1:19:48that stuff you mentioned. So, in
1:19:50principle, once again, the normal
1:19:53practice is to leave with one or two
1:19:55extra salaries. Normal practice. And no
1:19:59one will, well, sue you any further. But
1:20:02by law, it really is difficult to fire
1:20:07Indonesians. Expensive,
1:20:10>> yes.
1:20:11That's why remember, our basic
1:20:12recommendation has always been: "Please
1:20:14, use fixed-term remote work contracts
1:20:16with them."
1:20:17Because that way, this employee is not
1:20:20officially your employee, and this
1:20:22allows you, first of all, to get rid of
1:20:24them without any problems or additional
1:20:27costs, and secondly, to test the person
1:20:29in a demo version at the beginning.
1:20:33>> So, statistically, 426 companies were
1:20:35inspected, and 423 of them received
1:20:37sanctions.
1:20:39Apparently, you somehow ended up in
1:20:41those three companies, because 99.3%of
1:20:44the suspicious businesses inspected were
1:20:47found in violation.
1:20:49>> Well, wait, my company, it doesn't fall
1:20:52under the category of suspicious ones.
1:20:56The fact that, the fact that Ni Luh
1:20:57Djelantik personally, so to speak,
1:20:59didn't like it, that, well, didn't like
1:21:00our marketing, that is, in general, her
1:21:02business.
1:21:03But there is no reason to believe that
1:21:05my enterprise is suspicious or belongs
1:21:07on a list of suspicious enterprises.
1:21:09That's what I'll say.
1:21:13Well, what else can I tell you?
1:21:16We've covered the shareholders and
1:21:18touched upon the criminal side. Pa buuki
1:21:21here.
1:21:21>> We’ve done a lot of work. God, an
1:21:24excellent video turns out.
1:21:25>> I like this one. We’ve done a lot of
1:21:28work. I spent 2 weeks gathering
1:21:29information. You just poured a little
1:21:32bit of water, nodded your head, and said
1:21:34: "When will you finally subscribe to
1:21:37Paraguayan real estate, when will you
1:21:39start?" How are things going, by the way
1:21:42?
1:21:42>> You always, always exaggerate a lot. I
1:21:45am absolutely sure that your editing
1:21:47doesn't take that much time. I know how
1:21:49much editing takes.
1:21:50>> No, that's without editing, that's just
1:21:51filming. Then you still have to edit it
1:21:54.
1:21:54>> Yeah, yeah, yeah.
1:21:55Accordingly, and by the way, you are
1:21:57also overestimating our current channel
1:21:59, because from it, according to my
1:22:01statistics, subscribed: "Well, okay,
1:22:02I’ll take the upper limit, 40 people, no
1:22:04more."
1:22:05So, out of all those views you see, only
1:22:09about 40 people subscribed.
1:22:12>> Well, look, look.
1:22:14I think Bali taught you to warm up, keep
1:22:16warming, push, and sell.
1:22:19Four words: warmed up. I’ve already
1:22:22warmed them up. Then you need to keep
1:22:24warming them up on your channel, then
1:22:26push, and sell them Paraguay. Go ahead
1:22:28and sell, sell your Paraguay already.
1:22:32I hope, at least there, maybe a ray of
1:22:36green light will shine.
1:22:39>> Exactly green. Yes, yes, yes.
1:22:42>> How is the situation in general?
1:22:46>> Everything is calm. There is quite a lot
1:22:48of movement right now. Oh, I bought a
1:22:50car.
1:22:50Well, now I'm going to, we're going to
1:22:52celebrate it now. We’ll finish the
1:22:54broadcast, and then we’ll celebrate and
1:22:56tell you all about it.
1:22:58>> I watched it, and jealousy won’t leave
1:23:00me alone. I saw about 6 thousand views
1:23:02there, right, on the video?
1:23:04>> Uh-huh. Yes.
1:23:05>> Did you pay for some kind of
1:23:07advertisement there?
1:23:10>> No, no, it’s all naive native traffic. I
1:23:12don’t pay anything at all.
1:23:13>> Did people just happen to wander onto a
1:23:15new channel by chance and get 5-6
1:23:17thousand views? No, my channel got into
1:23:19YouTube recommendations. 93%of the
1:23:21traffic was from direct YouTube
1:23:23recommendations.
1:23:24>> Uh-huh.
1:23:26>> Got it. Well, that’s...
1:23:27>> So, this video specifically made it into
1:23:29YouTube recommendations.
1:23:30>> Well, a regrettable accident. Got it.
1:23:32Okay.
1:23:33>> Yes, yes, there are sometimes
1:23:34regrettable accidents.
1:23:36>> Then, maybe you want to say something to
1:23:38our subscribers?
1:23:40>> Ah...
1:23:42>> Vaya con Dios.
1:23:43>> Well, go on, go on, Camino a Dios, go
1:23:46ahead.
1:23:48Some sort of global recommendation after
1:23:51all. If anyone still has property in
1:23:53Indonesia, well, there’s probably
1:23:55absolutely no point in selling it now
1:23:57and getting out of it.
1:23:59Try to find ways to rent it out, well,
1:24:01for any money, for whatever people will
1:24:04pay, so that, again, so that, again, you
1:24:07can recoup the cost of the property you
1:24:10once invested there. That is the first
1:24:12story, so to speak. The second point is
1:24:14regarding opening businesses in
1:24:15Indonesia, specifically in Bali.
1:24:17But now, if you are entering Bali with a
1:24:20business project, it is certainly better
1:24:23to centralize it and, well, have the
1:24:25business, a physical or virtual location
1:24:28, in Jakarta or on other islands, rather
1:24:30than in Bali, so that you have more
1:24:33opportunities for financial control and
1:24:35, well, options for conducting certain
1:24:38types of activities.
1:24:40So, the Bali story is basically over.
1:24:42Coming in, opening a company quickly—
1:24:45that is, well, it is coming to an end.
1:24:48The basic recommendation now is to move
1:24:50to other islands. What else?
1:24:53Yes, we are living like this for now.
1:24:56The situation overall has become less
1:24:58stressful. People are starting to get
1:24:59used to the fact that there are more
1:25:01requirements.
1:25:02People are starting to pay more to open
1:25:04companies.
1:25:06We are starting to do more work to open
1:25:08companies. Timelines are increasing.
1:25:11So, in general, the bureaucratic machine
1:25:13has fully engaged in the Balinese system
1:25:16now, and it is unlikely to disengage
1:25:18anytime soon.
1:25:19Therefore, these are the realities we
1:25:21live in now, and we must accept them.
1:25:23And
1:25:27it is a pity that many people have
1:25:28stayed with their businesses and are
1:25:30continuing to conduct their business
1:25:31activities here in Bali.
1:25:34But there is nothing we can do about it
1:25:35now, we are already here. So let’s hold
1:25:37on, stay strong, and get through this
1:25:39difficult situation together.
1:25:41>> You are already there, but we are still
1:25:45here.
1:25:46That’s first.
1:25:48Secondly, you probably have Balinese
1:25:49employees, so how do they comment on the
1:25:51tightening of the screws?
1:25:53Do they feel it themselves?
1:25:55>> They don't give a damn. They never give
1:25:56a damn. Every year they don't give a
1:25:57damn. I always ask, and I'm always
1:25:59surprised. They are like: "Pak, nothing
1:26:01will change for me. Pak, everything is
1:26:03fine. Pak, everything is fine." I say: "
1:26:04Well, okay." And have you heard about
1:26:06this, that for foreigners this and that
1:26:07is happening? They say "Yeah, yeah, yeah
1:26:09," like, "Yeah, yeah, yeah, yeah, yeah.
1:26:10" That is how they always react.
1:26:12>> But are the screws tightening for
1:26:14Indonesians themselves or not?
1:26:16>> No, no, not really. No,
1:26:19>> everything is fine.
1:26:20>> Yes, everything is basically as it was.
1:26:22Everything is as it was.
1:26:24>> Well, thank you for at least one
1:26:27positive, so to speak, ray of light.
1:26:33I wish for your car to practically never
1:26:35break down, not consume much gas, always
1:26:38have intact windows, unpunctured tires,
1:26:41and an engine that doesn't fail.
1:26:45And the transmission should also shift
1:26:46normally.
1:26:47And in general, basically, so that you
1:26:49can keep it for a while in the same
1:26:51condition you bought it in.
1:26:53>> Thank you.
1:26:57Get apa

About this transcript

This page contains the full transcript of За что сейчас сажают на Бали? Обвал экономики и недвижимости в Индонезии by Эксперт Бали 🎙 , generated from the public captions YouTube serves with the video. The transcript has 13,854 words across 2,345 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to choose a caption track available on the video.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, caption language selection, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.