One widely shared post described an Indonesian woman whose application was placed under review, while her husband, using a Western name and phone number, was reportedly admitted immediately. Similar accounts from other users fuelled accusations that the club favoured expatriates and digital nomads over residents.

Indonesia 's Director General of Immigration, Hendarsam Marantoko, condemned the organisers' conduct, saying foreigners must not create exclusive communities that discriminate against Indonesian citizens. Authorities identified the organisers only by their initials, JAS and HQV, and confirmed both had left Indonesia for Singapore before enforcement action was taken. They have since been placed on Indonesia's entry ban list.

Immigration officials are also investigating whether the organisers complied with Indonesian immigration and business regulations. Authorities said foreign nationals are not permitted to organise commercial events without the appropriate permits or visa status.

In a public statement, Entourage Bali apologised to those who felt excluded and denied deliberately discriminating against Indonesians. The organisers said the community had been created primarily to connect digital nomads living in Bali and that an error in its automated approval system caused some, but not all, Indonesian phone numbers beginning with +62 to be rejected. They added that Indonesians accounted for around 25% of tickets sold for the club's running events and announced that all activities had been suspended while they reviewed their procedures.

The incident has reignited debate over the rapid growth of Bali's expatriate and digital nomad communities. Indonesian officials have increasingly tightened enforcement against foreigners accused of violating visa conditions , operating businesses without permits or showing disrespect toward local customs and laws.