Yes, some business sectors remain restricted for foreign investment in Bali, as in Indonesia generally — but far fewer than in the past. Since 2021, foreign investment conditions are set by the Positive Investment List (Presidential Regulation No. 10/2021, as amended by No. 49/2021), which replaced the old Negative Investment List (DNI). The default is now openness: all sectors are open to 100% foreign ownership unless specifically listed.
Here are the key points for foreign investors in Bali:
Open Sectors (the default): Most tourism and hospitality activities that attract investors to Bali — hotels, villas, restaurants, cafes, bars, spas, and travel agencies — are now open to 100% foreign ownership. (Under the old DNI, many of these were capped at 49-70%.)
Prohibited Sectors: A short list of activities is completely closed to investment, including:
- Gambling and casinos
- Cultivation of class-I narcotics
- Capture of protected and endangered species, and coral extraction
- Chemical weapons production
- New investment in the alcoholic beverage manufacturing industry (serving alcohol in licensed restaurants, bars, and hotels is regulated separately)
Conditional Sectors: A small number of sectors keep foreign ownership caps or special requirements — for example postal services and domestic air transport — and certain small-scale activities are reserved for, or require partnership with, Indonesian cooperatives and micro, small, and medium enterprises (MSMEs).
Minimum Investment: A PMA company requires an investment plan of more than IDR 10 billion (approximately USD 600,000) per 5-digit business classification (KBLI) per project location, excluding land and buildings, and minimum paid-up capital of IDR 2.5 billion.
Specific Licenses: Some sectors, such as healthcare and education, require sectoral licenses and approvals through the OSS (Online Single Submission) system in addition to standard business registration.
It’s crucial for foreign investors to confirm the conditions applying to their exact business classifications, and to consult with experienced professionals like Okusi Associates to understand the requirements applicable to their desired business sector in Bali.
Okusi Associates can provide guidance on the most suitable business structure and assist in navigating the regulatory landscape to ensure compliance with foreign investment conditions. They can also help in identifying potential local partners if required and in obtaining the necessary licenses and approvals for your specific business sector.
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