Bali's investment boom in 2025 opened new horizons for capital

On June 25, 2025, Indonesian President Prabowo Subianto officially opened the new Bali International Hospital (BIH) in Sanur. This is not just the opening of a medical facility, but the beginning of a large-scale transformation of Bali into an elite medical tourism hub.

What is BIH

Bali International Hospital is a state-of-the-art complex equipped with the latest generation of equipment, putting it on par with the best clinics in the world. It features:

• PET scanners,

• 3 T MRI,

• LINAC systems for precision radiation therapy, and more.

The facility works in collaboration with global leaders. Cardiology is supported by specialists from Japan, oncology by experts from the US and Australia, and general diagnostics and management by partners from Singapore.

Strategic goal of the project

The Indonesian government has invested over $1 billion in BIH. Every year, Indonesian citizens spend about $11.5 billion on treatment in Singapore, Malaysia, and Europe.

BIH will not only return these funds to the country's economy, but also attract foreign patients who previously chose Thailand or South Korea. It combines high-quality treatment and recovery in the premium conditions of the tropical resort of Sanur.

Foreign doctors in Indonesia

For the first time in the country's history, new legislation has allowed foreign specialists to obtain the right to practice in Indonesia. This removes bureaucratic barriers for the world's leading medical professionals.

This opens up new opportunities for thousands of certified medical professionals from around the world who are ready to share their experience and raise the standards of local medicine.

At the time of opening, three oncologists from Singapore and a leading physician from Germany are already working in BIH.

This makes it clear that Indonesia is ready to compete for leadership in the healthcare sector. For Bali, this means new jobs and an influx of investment.

The Maldivian market is a prime example of a unique tourism ecosystem that offers structural advantages and risk mitigation—factors critical for investors in the mid-premium and luxury segments. Current indicators suggest that entering this market now is a strategically sound move. Here is why.

Resilience and regulatory synergy

1. Proven Durability: The Maldives successfully navigated the ultimate stress test—the COVID-19 pandemic—becoming one of the first global destinations to fully recover its tourist influx. This resilience confirms not only the market's viability but also the high price elasticity of demand for luxury travel.

2. State-Business Alignment: With tourism generating over 30% of GDP, the government is a primary stakeholder. Business objectives and national interests are perfectly synchronized, ensuring a favorable regulatory environment and minimizing "black swan" political risks.

3. Extended Retention: The average length of stay is 7.9 nights, significantly higher than in "weekend getaway" markets. This results in a structurally superior LTV (Lifetime Value per visit).

4. Legacy Brand Equity: The "Maldives" brand carries immense inherent value. Investors inherit global recognition without the need for massive marketing budgets to build destination awareness.

Natural barriers to entry and supply scarcity

The Maldives' greatest competitive advantage is its inability to be "scaled" in the traditional sense. This creates a natural filter for competition. Out of 1,190 islands, only 185 are available for development. This fundamental geographical constraint ensures a structural supply deficit, with new inventory growing at less than 2% annually.

Furthermore, foreign capital participation is restricted to long-term leases (50–99 years) via closed tenders. This process requires more than just capital; it demands reputation and expertise, typically limiting competition to 3–5 global players per tender. Every new development undergoes a rigorous concept audit and Environmental Impact Assessment (EIA), a process lasting 18–36 months that yields only 20–25 approved projects per year.

These barriers transform every approved mid-premium or luxury project into a strategic asset with a built-in scarcity premium.

High-Net-Worth demand and the profitability formula

Demand is driven exclusively by affluent travelers from G20 nations seeking "smart luxury." According to Central Bank data, the average daily tourist spend is $512. In the mid-premium segment, 45–55% of revenue is generated through ancillary services (beyond the base room rate).

GOPPAR (Gross Operating Profit Per Available Room) ranges from $200 to $280—approximately 70% higher than competitors like the Seychelles or Mauritius. With 40% of bookings falling within the $250–$350/night range, the market hits a "sweet spot" where guests pay for the experience rather than redundant opulence.

Additional Margin Drivers:

• Zero FX Risk: 100% of revenue is USD-denominated.

• Operational Efficiency: The "one island, one resort" model minimizes logistical overhead and maximizes operational control.

Transparent legal framework and tax incentives

The Maldivian legal model provides investors with quasi-ownership and high asset liquidity.

• Long-term Security: Leases of 50+ years with automatic renewal options provide a planning horizon sufficient for CAPEX amortization and securing international financing. Investors own the buildings and infrastructure, while the state retains land ownership—a structure that renders assets virtually immune to expropriation.

• Tax Efficiency: 0% Capital Gains Tax (CGT) on exits, and 100% repatriation of dividends, interest, and capital with no withholding tax.

An investment in the Maldivian mid-premium segment is more than just an entry into the hospitality business; it is the acquisition of a highly liquid, structurally protected, and USD-indexed asset.

The Indonesian government has officially launched the Global Citizenship Indonesia (GCI) policy. While not a full dual citizenship, this innovative program allows individuals with ties to Indonesia to obtain permanent residency and long-term rights while maintaining their original foreign citizenship.

The GCI was launched in response to the needs of the vast Indonesian diaspora and descendants of Indonesians who may have changed their citizenship status or were born in mixed-marriage families abroad.

Who is eligible for the GCI Program?

The GCI policy is exclusively available to those with ancestral, familial, or historical ties to Indonesia. Key eligible categories include:

• Former Indonesian citizens who have since acquired foreign citizenship.

• Descendants of former Indonesian citizens up to the second degree (children and grandchildren).

• Legal spouses of both current and former Indonesian citizens.

• Children born of legal marriages between Indonesian and foreign citizens who do not qualify for limited dual citizenship or who have passed the age limit for choosing their citizenship.

Exceptions

To safeguard national interests and security, the government has established strict exclusions. The following categories are not eligible for the GCI:

• Citizens of countries that were formerly part of Indonesia (specifically referring to Timor-Leste).

• Individuals involved in separatist movements against Indonesia.

• Foreign government, intelligence, or military personnel.

These restrictions ensure that the GCI program is not utilized for political or security purposes that conflict with the interests of the state.

Provisions for children and limited dual citizenship

The introduction of the GCI does not change existing laws regarding children with limited dual citizenship. Children from mixed marriages who hold limited dual citizenship must still make a final choice upon reaching the age of 18 or getting married. They have a maximum of three years from that date to declare their decision.

Essentially, the GCI serves as an additional tool for adults who have already lost their Indonesian citizenship, those who did not exercise their right to choose within the deadline, and their descendants.

A simple and accessible online application process

A primary advantage of the GCI program is its fully digitized application process. Interested parties can submit all required documents and access the service through the official portal: evisa.imigrasi.co.id.

This online system significantly streamlines the procedure, allowing applicants from anywhere in the world to access the GCI without needing to be physically present in Indonesia during the initial stages.

Why the GCI matters for Indonesia

The launch of this program is a strategic move to attract global talent and investment. It signals Indonesia’s openness to the world and its readiness to adapt legislation to support national identity and economic development in a globalized era.

Bali remains one of the most attractive destinations for real estate investment, especially for rental purposes. However, the profitability varies significantly depending on the specific area. The analysis below, based on key indicators OCC (Occupancy Rate) and ADR (Average Daily Rate), allows for an objective rating of the profitability of different locations.

Analysis of indicators by region

• Amed. This submarket demonstrates high efficiency with a score of 99, confirmed by a significant increase in key financial metrics: annual revenue is Rp256.9M (+10%), Revenue Per Available Room (RevPAR) grew the most—to Rp723.69K (+15%), and the occupancy rate reached 63% (+4%).

• Candidasa. This submarket has a mediocre score of 55. The indicators are mixed: annual revenue is Rp534.4M (+2%), and the Average Daily Rate (ADR) Rp3.55M (+4%) and RevPAR Rp1.58M (+4%) are growing. However, the occupancy rate is falling to 47% (-4%).

• Canggu. This submarket has a high score of 91, but most indicators are falling: annual revenue Rp524.9M (-10%), ADR Rp2.62M (-9%), and RevPAR Rp1.54M (-8%). The occupancy rate is 62% (-3%).

• Jimbaran. This submarket has a high score of 89. Most indicators remain stable: annual revenue Rp355.8M (-3%) and occupancy rate 60% (-5%). ADR Rp1.81M is slightly increasing (+1%), and RevPAR remains unchanged (Rp1.04M, 0%).

• Kerobokan. High score of 80, but a significant decline in almost all indicators, particularly annual revenue Rp498.7M (-13%) and RevPAR Rp1.47M (-11%).

• Kuta. This submarket has an average score of 64 and shows a decline in all key indicators: annual revenue Rp185.8M (-15%), occupancy rate 48% (-5%), RevPAR Rp529.18K (-12%), and ADR Rp1.17M (-11%).

• Legian. This submarket has a good score of 74 and shows moderate but positive growth: annual revenue Rp386.4M (+1%), occupancy rate 56% (+3%), and RevPAR Rp1.12M (+4%). Only the ADR decreased by 2% (Rp2.08M).

• Mengwi. This submarket has a high score of 89, but shows a decline in all key indicators, except for RevPAR, which fell by 10% to Rp1.26M. Annual revenue Rp426.3M (-12%), occupancy rate 64% (-1%), and ADR Rp2.09M (-12%) also fell.

• North Kuta. This submarket has a high score of 84, but most indicators are decreasing: annual revenue Rp506.2M (-11%), occupancy rate 61% (-3%), RevPAR Rp1.49M (-10%), and ADR Rp2.58M (-10%).

• Bukit. High score and a moderate decline: annual revenue Rp334.2M (-4%), occupancy 62% (-5%), RevPAR Rp975.72K (-1%).

• Seminyak. Average score. Annual revenue Rp729.2M (-11%), RevPAR Rp2.20M (-10%), and occupancy 60% (-4%).

• South Kuta (Bukit). Average score. Annual revenue Rp539.4M (-10%), RevPAR Rp1.61M (-8%), and occupancy 60% (-1%).

• Ubud. Average score. Annual revenue Rp337.7M (-12%), RevPAR Rp960.47K (-9%), occupancy 60% (-6%).

• Umalas. High score, annual revenue Rp530.4M (-13%), RevPAR Rp1.56M (-12%).

Leaders and outsiders

1. Occupancy rate (OCC)

OCC is an indicator of constant demand in the area. The higher this indicator, the less your property stands idle.

• Leaders - Canggu and Sanur demonstrate the highest OCC level in Bali. Stable demand guarantees minimal property downtime.

• Outsider. Kintamani records the lowest OCC on the island. This is a tourist spot, attractive for day trips due to the picturesque view of Mount Batur and the lake, but less suitable for long-term stays. Low occupancy here is expected.

No single indicator is sufficient to determine the best investment. Their combined effect must be evaluated.

Investment choices in Bali should be based on a balance of risk and return, relying on expert forecasts.

Indonesia has become the first country in the world to implement 'Seamless Corridors'.

What it is: These innovative biometric systems are currently operational in Jakarta and Surabaya airports, utilizing Artificial Intelligence (AI) for instantaneous and contactless passenger identification while they are moving. This eliminates unnecessary delays for presenting travel documents to immigration or scanning passports at e-gates.

This solution transforms cumbersome border control into a fast and fluid process.

How the clearance technology works

The system is built on cutting-edge biometric technology. Passengers walk through the corridor without stopping. As they move, high-precision cameras and sensors integrated with AI algorithms perform the following actions:

• Recognition: Facial and/or iris recognition.

• Instant Verification: The AI cross-references the acquired data with the government database.

• Automatic Confirmation: Identity is confirmed, and the border crossing is registered automatically.

This approach is convenient, accurate, and incredibly fast, leading to highly effective passenger flow management.

Strategic focus on Hajj Pilgrims

The pilot project for the 'Seamless Corridors' is strategically aimed at the passenger group that generates the largest flow: Hajj pilgrims. Indonesia has the highest Hajj quota globally, at approximately 220,000 people annually.

Thanks to this project, clearance during peak hours is significantly accelerated. Passengers whose biometric data is already registered are directed through these corridors. The system is also available to international passengers whose biometric data is in the system. This ensures high throughput and enhances the level of security due to AI accuracy.

Bali awaits the innovation

While Jakarta and Surabaya are testing this advanced technology, tourist attention is, as usual, focused on Bali. I Gusti Ngurah Rai Airport is preparing for yet another record year in terms of traveler numbers.

Specific plans for implementing the 'Seamless Corridors' in Bali have not yet been announced. However, authorities have already taken several steps to optimize control in 2025:

• Installation of more Autogates.

• Simplified visa system.

• Introduction of the All Indonesia unified card.

Given Bali's crucial strategic importance, it is logical that the implementation of AI corridors will follow soon after the pilot project proves its effectiveness.

The Bali villa market is showing significant growth heading into late 2025, consistently outperforming Indonesia's national economic forecasts. The national economy expanded by 5.52% in the first quarter, with annual projections set between 5.0–5.8%.

Tourism, yield, and rapid payback

Bali’s economy is soaring, primarily driven by its robust tourism sector. Tourist arrivals in April surged by 25.56% compared to March, pushing overall occupancy rates to 57.23%. Villas are leading this performance, reliably delivering a net yield of 8–10% with high occupancy rates of 65–80%. This high efficiency translates into a rapid return on investment (ROI), averaging 6 years, fueled by strong demand from digital nomads and families.

Infrastructure projects as key catalysts

Major infrastructure projects scheduled for 2025 are set to become the primary drivers for property value appreciation: a new international airport, the Paramount theme park (set to be the largest in Southeast Asia), a Formula 1 track, and a new cruise port. These projects, alongside planned upgrades to the island’s road and rail networks, are expected to trigger a 15–20% increase in capital gains and rental rates. In expatriate hotspots like Canggu, villa values are expected to climb by over 20%.

Key investment zones

South Bali dominates the market, offering zones with high returns and stable demand:

• Canggu: The undisputed digital nomad hub. Offers fast-growing income and high liquidity (40% resales). Yields are typically 8–10% for villas starting from $\$200k–250k$.

• Uluwatu/Bukit: Known as the surf-luxury epicenter, providing high returns up to 10% and exceptional occupancy ($\approx 85\%$). Resale potential here is very high (15–40%).

• Ubud: The cultural and ecotourism hub delivers stable, balanced returns up to 10% with 75–80% occupancy.

• Seminyak: A classic lifestyle and gastronomy anchor, generating 8–12%, but facing higher market competition.

• Emerging regions: High-potential areas to watch include Nuanu (creative hub), Cemagi (coastline), Nyanyi (price alternative to Canggu), Bingin (surf niche), and Sidemen (eco-rentals), which generally offer returns up to 10%.

Sustainability as a premium factor

Bali’s commitment to achieving 100% renewable energy by 2027, notably through the $\$70$ million "Green Bukit" initiative, is stimulating sustainable construction. This creates a tangible premium for eco-villas, which command a 15% premium on resale and secure steady yields up to 10% from environmentally conscious renters.

The Bali villa market in 2025, underpinned by tourism and infrastructure, offers investors stable returns up to 10%. The persistent, unique global demand for each region makes targeted investments in Canggu and Uluwatu highly lucrative.