DENPASAR, DEWATA.NEWS – Legal loopholes in handling illegal money changer cases in Bali are allowing offenders to avoid prosecution and resume operations, raising concerns over tourist protection and the island’s tourism reputation.
Ni Made Tirtaningsih, Chair of the Bali Foreign Exchange Association (APVA), stated in Denpasar on Monday (March 23) that despite enforcement efforts, many illegal operators caught scamming tourists are able to continue their activities.
According to her, several key factors prevent cases from progressing to court. Foreign tourists who become victims often choose not to pursue legal action due to limited holiday time. In many cases, perpetrators return the stolen money, and victims accept the refund without filing a formal complaint.
Additionally, law enforcement requires complete case documentation, including victim and witness statements, to proceed legally.
“These conditions create loopholes that allow illegal money changers to continue operating,” Tirtaningsih said.
To address the issue, APVA Bali has begun collaborating with traditional village authorities (Desa Adat) in areas such as Seminyak, Kuta, and Legian. The initiative focuses on monitoring and guiding illegal operators within local communities.
APVA Bali, supported by Bank Indonesia Denpasar, has also held discussions with the Bali Provincial Government to strengthen coordinated enforcement. The approach includes encouraging illegal operators to obtain official licenses and comply with regulations.
Those who continue operating without permits may face warnings, sanctions, or business closure. Traditional villages are expected to play a key role through local customary regulations (Pararem), which can impose both administrative and customary penalties.
The association is also preparing a five-year strategy that includes forming a joint task force, developing a database of high-risk locations, increasing field monitoring, and launching public awareness campaigns on licensed money changers.
Tirtaningsih emphasized that strict action will also be taken internally against any APVA members found cooperating with illegal operators.
“Firm sanctions will be applied to any members proven to be involved in handling transactions from illegal money changers,” she said.
Authorities expect that stronger collaboration between APVA, Bank Indonesia, local government, law enforcement, and traditional communities will help close existing legal gaps and improve trust among international visitors.