Indonesia has steadily embraced Special Economic Zones (SEZs) since 2015 to catalyze economic growth. Bali, renowned for its spectacular tourism and rich culture, presents itself as an attractive destination for investors. The province hosts two ambitious Special Economic Zones (SEZs) focusing on the tourism and urban development sectors.
In this article, you will explore why Bali SEZs present strong investment potential and how to navigate them correctly for your business.
What is the Bali Special Economic Zone (SEZ)
A Special Economic Zone (SEZ) is a designated area established to boost trade, increase investment, create jobs, and improve administration. This area offers advantages such as tax incentives and relaxed labor laws, which significantly benefit foreign investors.
Bali’s SEZs are unique within Indonesia’s broader SEZ strategy, focusing on tourism, health, and creative industries rather than industrial manufacturing. The Sanur Special Economic Zone is Bali’s flagship zone, focusing on health tourism, while KEK Kura Kura Bali, located on Serangan Island, integrates sustainable development with cultural and creative industries.
Why invest in Indonesia SEZ: Key benefits for investors
Indonesia SEZs, especially those in Bali, offer a compelling package of incentives for investors. Here are the top reasons why Indonesia SEZs are a magnet for foreign and domestic investors:
Tax and Fiscal Incentives
Indonesia offers significant fiscal perks within SEZs to encourage capital inflow. Companies benefit from corporate income tax holidays, ranging from several years up to 25 years, plus allowances on accelerated depreciation.
Custom and VAT Exemptions
Investors importing equipment and raw materials into SEZs can enjoy exemptions from import duties and value-added tax, thereby streamlining supply chains and reducing input costs.
Simplified Licensing and Administrative Procedures
Indonesia SEZs enjoy faster customs clearance and licensing through integrated services, resulting in smoother business processes. This setup includes:
- Online Single Submission (OSS) system for permits and licenses.
- One-stop service centers to assist with company registration, business licenses, and operational clearances.
- Efficient customs clearance procedures supported by local SEZ authorities.
- Dedicated administrative bodies that reduce bureaucratic hurdles and enhance regulatory transparency.
Robust Infrastructure and Site Readiness
Indonesia’s SEZs, particularly in Bali, are designed with integrated infrastructure, allowing companies to begin operations with minimal setup costs. The robust infrastructure includes:
- Fully serviced land plots with utilities (electricity, water, waste systems).
- Access to transportation networks such as ports, airports, and roads.
- Support facilities including worker housing, commercial areas, and digital infrastructure.
- Investment-ready sites enable fast-track development with minimal lead time.
Global Market Access
Bali’s position as a global tourism hotspot makes it a natural draw for businesses in the hospitality, healthcare, and entertainment sectors. Being in Indonesia SEZ also provides easier access to the ASEAN Free Trade Area (AFTA), connecting investors to over 600 million consumers.
Read more: Top 10 most profitable businesses in Bali.
Sanur Special Economic Zone (SEZ): A hub for health tourism and MICE
Sanur SEZ, located in Denpasar City, is the first health and wellness-focused special economic zone in Indonesia. Spanning 41.3 hectares, the zone was formalized under Government Regulation No. 41/2022 and is currently managed by PT Hotel Indonesia Natour (HIN).
With an expected investment value of IDR 10 trillion and 43,000 jobs by 2045, the Sanur SEZ features various medical and tourism initiatives, including:
International-Standard Hospital
A flagship Mayo Clinic-affiliated hospital, expected to treat over 140,000 patients per year. The facility will set a benchmark in Indonesia’s medical tourism industry, catering to both local and international visitors.
Ethno-Medicinal Botanical Garden
A 6.5-hectare park featuring more than 500 species of medicinal plants. It serves educational, cultural, and eco-tourism purposes, ideal for researchers, herbalists, and tour operators.
Grand Inna Bali Beach Redevelopment
A 1,000-room beachfront hotel project, complete with retail areas, restaurants, and recreational zones.
MICE Facilities
A fully equipped international-standard convention center, meeting rooms for up to 2,000 guests, and spaces for exhibitions and business events, attracting the lucrative Meetings, Incentives, Conferences, and Exhibitions market.
Green Mobility Infrastructure
Integrated with electric buses and bike lanes, the SEZ promotes sustainable urban planning principles and low-carbon transport.
Read more: Start your medical tourism business in Bali
Kura Kura SEZ: Smart island for tourism, culture, and creative industries
Kura Kura SEZ, officially launched in April 2023, spans 498 hectares on Serangan Island. This zone is Indonesia’s boldest attempt to merge luxury tourism, innovation, and education within an environmentally sustainable island framework.
This zone is estimated to reach an investment projection of IDR 104 million and generate over 100.000 direct and indirect jobs, with key investment sectors such as:
Integrated Marina and Resorts
Designed to support international yacht tourism, Kura Kura will feature a high-end marina, luxury hotels, villas, and seafront restaurants catering to elite travelers and global yacht owners.
Cultural and Lifestyle District
Plans include a large cultural park, high-end retail centers, art spaces, and open-air venues for music, dance, and culinary festivals—his appeals to Bali’s niche in creative tourism.
International Education Hub
A future campus for an international university and R&D center to attract global students, innovators, and tech companies. The tech park will support startups, green innovation, and digital nomad communities.
Wellness and Medical Zones
Complementary to Sanur, Kura Kura will also house holistic health centers, detox resorts, and alternative medicine clinics.
Read more: Start tourism investment in Bali and Lombok
Seize the opportunities in Bali SEZ with InCorp
Entering Indonesia’s SEZs, including Sanur and Kura Kura, requires a strategic setup and an understanding of Indonesia’s legal compliance requirements. InCorp Indonesia (an Ascentium Company) offers a comprehensive one-stop solution for your business to manage local complexities, allowing you to focus on business growth and start operations seamlessly.
Our services include:
- Company Registration: Our experts help to quickly establish your legal entity in Bali SEZs with complete legal and administrative support.
- Business License: We ensure your business obtains all necessary permits and complies with local regulations.
Ready to invest in Bali? Contact us today and let InCorp optimize your business potential in Bali SEZs.
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What you'll get
A prompt response to your inquiry
Knowledge for doing business from local experts
Ongoing support for your business
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.
Frequently Asked Questions
- Annual financial report
- Investment realisation report
- Manpower and employee welfare report
- Expatriate utilisation report
- Company loan repot
- Foreign exchange and prudential principles report
It all depends on your business’s purpose and nature. Our consultants will help you to clear out the matters.
In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as:
However, depending on the business activities and classification relevant authority may require additional reports from a PMA company.
Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process.
The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must.
