Establishing a foreign-owned company (PT PMA) in Bali now faces stricter regulations under KBLI 2025 and provincial investment controls, affecting investor plans and requiring careful compliance.
Failure to follow proper procedures can lead to OSS rejection, restructuring, additional licensing, or a revision of your business plan.
This guide highlights recent changes, open investment sectors, relevant KBLI and capital rules, and lists necessary checks before incorporation.
Key Takeaways
- Bali’s PT PMA restrictions were initiated in January 2026 and implemented through OSS in May 2026.
- The restrictions cover 18 specified low- and medium-low-risk KBLI activities.
- Under BPS Regulation No. 7/2025, KBLI 2025 is now the current classification used across OSS and AHU.
- PT PMAs generally require more than IDR 10 billion in investment and at least IDR 2.5 billion in paid-up capital, subject to sector-specific rules.
- A genuinely low-risk tier can still reach Bali by registering the PT PMA elsewhere, often Jakarta, and adding Bali as a branch.
KBLI risk tier for Bali PT PMA in 2026
| Risk Tier | New PMA Registration in Bali | Typical License Required | Example Sectors |
| Low Risk | Blocked for new PMA (Bali domicile) | NIB only | Small retail, vehicle/motorcycle rental, general consulting |
| Medium-Low Risk | Blocked for new PMA (Bali domicile) | NIB + self-declared standard certificate | Travel agency services, selected F&B retail codes |
| Medium-High Risk | Open (approval conditional) | NIB + verified standard certificate | Larger F&B operations, wellness centers, selected real estate |
| High Risk | Open (approval conditional) | Full business license | Hotels/resorts, large-scale developments, manufacturing |
Note: A company with a physical address outside Bali (e.g., Jakarta) can register under low- or medium-low-risk codes and add Bali as a branch location.
What has changed for the PT PMA setup in Bali?
Bali has tightened PT PMA registration requirements for selected low-risk and medium-low-risk KBLI activities.
- Policy issued in January 2026: Governor’s Letter No. B.27.000/642/PM/DPMPTSP asked the central government to restrict certain foreign-owned businesses and tighten the use of virtual offices for PT PMA.
- OSS restrictions followed in May 2026: The measure was later implemented through OSS, affecting 18 specified low-risk and medium-low-risk KBLI activities.
- Stronger enforcement was already underway: Between 2021 and 2025, Bali recorded rapid PT PMA growth, while hundreds of companies were sanctioned for licensing violations, including activities that did not match their registered business scope.
- Bali is not closed to foreign investment: Foreign investors can still enter sectors with stronger operational substance, subject to the correct KBLI, ownership rules, location, investment value, and licensing requirements.
This means investors should confirm whether their planned activity can still be registered in Bali before committing to a company’s structure, lease, or investment.
InCorp Indonesia can review your KBLI, assess Bali eligibility, and evaluate alternative structures where needed. Talk to our team ->
Is Bali only open to medium-high and high-risk companies now?
Yes, for new PT PMA registrations with a Bali address, only medium-, high-, and high-risk activities can be registered, and approval remains conditional.
Applications can still be delayed or rejected if the KBLI doesn’t match the actual business, the location doesn’t meet zoning or Conformity of Space Utilization Activities (KKPR) requirements, or the investment and licensing conditions are incomplete.
For low-risk business models, one option is to establish the PT PMA in another province, such as Jakarta, and register the Bali operation as a branch or additional location. The Bali site must still meet the applicable KBLI, zoning, licensing, and local requirements.
Which KBLI activities are restricted in Bali?
Bali currently blocks new PT PMA licensing through OSS for 18 specified low-risk and medium-low-risk KBLI activities, providing clear guidance to avoid confusion.
| Business Activity | Examples Covered |
| Hotels | Smaller star-rated hotels and budget hotels |
| Real Estate | Property owned or leased |
| Consulting | Management and industrial management consulting |
| Vehicle Rental | Cars, buses, trucks, and motorcycles |
| Retail | Clothing, textiles, food, and selected agricultural retail |
| Accommodation | Other accommodation services |
| Food & Beverage | Cafés and traditional drink businesses |
| Tailoring | Custom clothing and tailoring |
| Sports | Stadiums, fitness centers, and sports promotion |
The restriction doesn’t automatically cover every low- or medium-low-risk KBLI. Investors should check the exact five-digit KBLI and its current OSS status before setting up a PT PMA in Bali.
How KBLI 2025 affects Bali business setup
KBLI 2025 replaced KBLI 2020 under BPS Regulation No. 7/2025 and is now the current business classification used for licensing in Indonesia.
For a Bali PT PMA, the selected KBLI affects four key areas:
- Business scope: The five-digit KBLI must align with the company’s actual business activities.
- Risk tier: Some KBLI 2020 codes were changed or split in KBLI 2025, which may affect whether an activity is still available in Bali.
- Licensing: The KBLI determines whether the business needs only an NIB or additional certificates and licenses.
- Investment plan: Investment requirements are assessed based on the KBLI and business location, in accordance with BKPM Regulation No. 5/2025.
Choosing the correct KBLI from the start is crucial to prevent licensing delays and avoid unnecessary restructuring, ensuring smoother business setup in Bali.
What must foreign investors check before setting up in Bali?
Before registering a PT PMA in Bali, review these key areas:
Business model
Define what the company will do, who it will serve, how it will earn revenue, and what its daily operations will involve. The selected KBLI must match the actual business activity.
KBLI 2025 and risk level
Confirm the correct five-digit KBLI and its risk level. This affects whether the activity can be registered in Bali and what licenses are required.
Foreign ownership
Check whether the activity allows 100% foreign ownership, has an ownership cap, requires a local partner, or is reserved for Indonesian businesses.
Business location
Make sure the location meets zoning, building, environmental, tourism, and other local requirements. Some activities also require a real operating location rather than a virtual office.
Investment and capital
Under BKPM Regulation No. 5/2025, a PT PMA generally requires:
- Investment: More than IDR 10 billion per five-digit KBLI per project location, excluding land and buildings, subject to sector-specific exceptions.
- Paid-up capital: At least IDR 2.5 billion per company.
- Multiple KBLI codes: Investment requirements may apply separately to each registered KBLI.
- Investor KITAS: Separate immigration requirements apply to shareholders seeking an Investor KITAS.
Incorporation process
The setup generally follows:
Name reservation → deed of establishment → AHU approval → tax registration → OSS registration → NIB
An NIB does not always mean the company can start operating immediately.
Operational licenses
Depending on the risk level, the company may also need a Standard Certificate, a Business License, or additional approvals in areas such as the environment, building use, tourism, health, safety, or products.
Get the structure right before filing
The KBLI, capital, location, ownership, and licensing requirements should be aligned before registration to avoid delays or the need for restructuring later.
Guide to Doing Business in Bali & Lombok
Start your Bali business setup with the right structure
Before setting up a PT PMA in Bali, confirm that your KBLI, ownership structure, location, investment plan, and licensing requirements align.
InCorp Indonesia (an Ascentium Company) can support foreign investors in Bali with:
- KBLI 2025 review: Confirm the right activity, risk level, and Bali eligibility.
- PT PMA establishment: Handle company registration, corporate documents, tax registration, and OSS submissions.
- Licensing support: Obtain NIB, Standard Certificates, Business Licenses, and sector approvals.
- Tax and accounting setup: Prepare tax, bookkeeping, payroll, and reporting from the start.
Assess your Bali business setup before you apply. Fill out the form below to schedule a free 30-minute consultation.
Frequently Asked Questions
What is KBLI 2025 and how does it affect Bali business setup?
KBLI 2025 is Indonesia's latest business classification under BPS Regulation No. 7/2025. It determines the company's registered activity, risk level, and licensing requirements. In Bali, the selected KBLI can also affect whether a new PT PMA registration is available.
When did Bali's PT PMA restriction take effect?
The policy began with Governor Letter No. B.27.000/642/PM/DPMPTSP on 28 January 2026. The OSS restriction was implemented in the third week of May 2026 for 18 specified low-risk and medium-low-risk KBLI activities.
Can foreigners still open a PT PMA in Bali in 2026?
Yes. Bali remains open to foreign investment, but certain activities are restricted. Approval depends on the KBLI, foreign ownership rules, location, investment requirements, and applicable licenses.
Which KBLI activities are restricted for new PMA registration in Bali?
The current restriction covers 18 specified low-risk and medium-low-risk activities, including selected real estate, consulting, vehicle rental, retail, accommodation, F&B, fitness, and sports activities.
Is an existing Bali PT PMA affected?
Existing companies are not automatically required to close, but they must continue operating within their registered KBLI and licensing scope. Companies operating outside their approved activities may face stronger regulatory scrutiny.
What is the minimum capital for a PT PMA in 2026?
A PT PMA generally requires an investment plan of more than IDR 10 billion per five-digit KBLI per project location, excluding land and buildings, subject to sector-specific rules. Minimum paid-up capital is generally IDR 2.5 billion per company.
Can I use a virtual office for a PT PMA in Bali?
Virtual-office structures for Bali PT PMAs face tighter restrictions. Investors should confirm whether the proposed address meets the requirements for their specific KBLI and business activity before registration.
What happens if I choose the wrong KBLI?
The application may be rejected or delayed, and the company may need to amend its corporate documents or licenses. The KBLI should accurately reflect the business activity from the start.
Can I set up a company in Jakarta and operate in Bali?
Potentially. A PT PMA may be established outside Bali and operate through a Bali branch or additional location. However, the Bali operation must still meet applicable KBLI, zoning, licensing, and local requirements.
How do I know if my business is open to foreign ownership?
Check the foreign ownership rules for the specific five-digit KBLI. Ownership limits and conditions can differ between activities, even within the same industry.
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Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
