Bali’s digital nomad boom is pricing out locals

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 Indonesian island’s economy and redefining what it means to “live in paradise.”

The Polish marketing consultant arrived in July 2024 on a remote work visa, drawn by Bali’s creative energy and the booming digital market of Southeast 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 tells The Business Times, adding that it took two months for his application to be approved.

Valek is among hundreds of remote workers flocking to Bali under Indonesia’s digital nomad visa, part of a post-pandemic push to revive the island’s tourism-reliant economy.

“Indonesia is beginning to realize that it can no longer rely on mass tourism,” a tourism exper says. / Photo credit: The Business Times

But as more nomads with foreign incomes arrive and stay longer, their presence is quietly reshaping spending patterns, driving up housing costs, and redrawing the island’s economic landscape.

So far, around 633 applicants have been approved for the E33G visa. About 77% have chosen to base themselves in Bali, cementing the island’s status as the hub of Indonesia’s digital-nomad scene.

This visa permits multiple entries and allows holders to live and work from the country 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 Bali’s growing appeal to remote workers from across the globe.

Longer stays, lower spending

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. Indonesia offers the C1 Special Visit Visa, which allows foreign nationals to stay 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.

Pura Ulun Danu Beratan, a water temple in Bali / Photo credit: kamchatka / 123RF

Shifting sands

Booming space