[BALI] When 24-year-old Jakub Valek moved to Bali last year to grow his UK-based digital firm, he joined a growing wave of remote workers reshaping the island’s economy and redefining what it means to “live in paradise”.
The Polish marketing consultant arrived in July 2024 on Indonesia’s remote work visa, drawn by Bali’s creative energy and the booming digital market of South-east Asia’s largest economy.
“Bali is well-known across Europe – it’s a magnet for marketers. Being physically here allows me to understand the culture and connect with the community on a deeper level,” he told The Business Times, adding that it took two months for his application to be approved.
So far, around 633 applicants have been approved for the E33G visa, with about 77 per cent choosing to base themselves in Bali, cementing the island’s status as the hub of Indonesia’s digital-nomad scene.
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This visa permits multiple entries and allows holders to live and work from Indonesia for up to a year. To qualify, individuals must meet several criteria – most notably, providing proof of employment with a company based outside Indonesia and earning a minimum of US$60,000 a year.
Russia stands out as the leading country of origin for applicants, reflecting the island’s growing appeal to remote workers from across the globe.
Before the launch of the digital-nomad visa, Bali had already seen a surge in remote workers choosing the “Island of the Gods” as their home base. The country offers C1 Special Visit Visa that allows foreign nationals to stay in Indonesia for up to 60 days, with the possibility of renewing it twice for extended visits.
Professor Azril Azahari, a tourism expert from Trisakti University, noted that Indonesia is moving away from mass tourism and embracing more curated, experience-driven travel. The focus is shifting towards the quality and duration of visitors’ stays – and their economic impact on local communities – rather than merely boosting arrival numbers.
“Now, the paradigm has shifted. Digital nomadism is no longer just a post-pandemic trend, it represents a broader global change in how we live and work,” he explained. “Indonesia is beginning to realise that it can no longer rely on mass tourism.”
Samer Elhajjar, a senior lecturer at the Department of Marketing at NUS Business School, sees this shift as part of a broader national ambition to reframe Indonesia as more than just a postcard destination. It is also a signal that the country is positioning itself as a competitive player in an emerging hub for remote talent and innovation.
“The government isn’t just chasing short-term tourist dollars anymore,” he noted. “Traditionally, Bali relied heavily on short-term tourists, but nomads bring in more steady, year-round income.”
Longer stays, lower spending
This shift, however, comes with trade-offs. As Bali pivots from mass tourism to longer-staying digital guests, the economic flow is changing, raising questions about who truly reaps the rewards of this new wave.
Christine Nababan, a long-time Bali resident and tour operator, has watched the island’s digital-nomad boom quietly reshape spending habits. In recent years, although the island still draws plenty of foreign tourists, she has noticed a drop in crowds at trendy cafes and upscale restaurants.
Instead, remote workers are gravitating towards cozy co-working spaces, small locally owned coffee shops and warungs – humble local eateries known for their affordable prices.
“They will grab a plate of nasi campur from a warung for lunch, then head to a cafe with strong Wi-Fi to work for the rest of the day,” she said. “And of course, they zip around everywhere on scooters instead of taxis.”
The increasing use of scooters by long-term tourists has added to Bali’s growing concerns, exacerbating traffic congestion, noise pollution and safety issues, especially in densely populated tourist areas.
As more remote workers arrive, often with foreign salaries in tow, prices for housing, food and services have surged.
For many Balinese, daily life is becoming increasingly unaffordable in their own backyard. Ida Ayu Wayan Agustini, a 21-year-old Balinese student at Politeknik Internasional Bali, has been feeling the squeeze in her search for an affordable kost near her campus.
Kosts, long considered the go-to option for local students and young workers, are small, budget-friendly rooms that may include a private or shared bathroom, and sometimes access to communal areas such as a kitchen or a lounge.
But as these humble lodgings become increasingly popular among long-staying foreign visitors, locals such as Ida Ayu are finding themselves priced out of even the most modest spaces. “The search for a cheaper (room) is really tough now,” she said. “Because once they (expats) move in, landlords often hike up the rent.”
Shifting sands
While tourists often gravitate towards hotels or all-inclusive resorts, digital nomads opt for more flexible living arrangements, such as apartments, private villas, or co-living spaces, where they can stay for weeks or even months.
This shift is subtly transforming Bali’s property market, with growing demand for long-term rentals and residential areas evolving into vibrant hubs for digital nomads.
Bali recorded about 6.3 million foreign tourists in 2024, up 20.1 per cent year on year. However, the hotel industry has yet to fully experience the benefits of this growth.
The Indonesian Hotel and Restaurant Association (PHRI) has reported a consistent decline in hotel bookings across Bali over the past few years, with occupancy rates falling from around 70 per cent. With about 150,000 rooms available across the island, the downturn is raising serious concerns among players in the hospitality industry.
Perry Markus, secretary-general of PHRI Bali, notes a growing trend of visitors opting for private villas and residences – many of which operate informally and are not registered with the local authorities. These unregistered accommodations often offer lower rates, drawing long-stay guests and contributing to a decline in hotel occupancy.
This has been further exacerbated by President Prabowo Subianto’s policy to cut official travel budgets, dealing a blow to the hotel industry, which has long relied on government events to sustain demand.
“This has hit us hard. With occupancy rates dropping, hotels have been forced to slash prices just to stay afloat,” Markus said, adding that the association has urged local governments to implement stricter regulations to ensure fair competition in the hospitality sector.
Booming space
Jensen Tan, senior vice-president of strategy and corporate finance at RedDoorz, observed that the rise of digital nomads has significantly reshaped popular tourist destinations such as Bali, driving strong demand for boutique villas.
To tap the growing digital-nomad market, the company adapted its strategy by launching The Lavana brand in 2023, specifically targeting the villa segment.
“The market remains highly fragmented on the supply side, and reaching customers isn’t as simple as relying on traditional online travel agency channels,” he said. “But if approached strategically, there’s significant growth potential in this segment. It’s a very different game compared to large-scale four or five-star hotels with established infrastructure and amenities.”
As Bali grapples with the pressures of over-tourism, including growing social and environmental concerns, Dr Elhajjar from the NUS Business School argues that Indonesia’s real challenge lies in managing the digital-nomad market sustainably.
“The key will be finding a balance between economic benefits and the preservation of local culture, natural resources and infrastructure,” he added. “If approached thoughtfully, digital nomads could evolve into a resilient, long-term segment for the tourism industry.”
