- by Riyadh
- 11 March 2026
The PMA business sectors in Bali closed under the latest licensing policy have become a major concern for foreign investors. The policy affects 18 specific business sectors through the Online Single Submission (OSS) system, particularly in tourism, hospitality, property, retail, and services.
For foreign investors who are already operating or planning to invest in Bali, this regulation creates several risks, especially when determining the appropriate business sector, KBLI code, and licensing requirements. Understanding these changes is essential to ensure that business activities remain compliant with Indonesian regulations.
- Why Were 18 PMA Business Sectors in Bali Closed?
- List of KBLI Codes for PMA Businesses Closed in Bali
- Risks for Foreign Investors
- 1. Automatic Rejection of New Business Licenses
- 2. Risk of Choosing the Wrong KBLI
- 3. Risk of Losing Legal Status
- 4. Restrictions on Business Domiciles and Virtual Offices
- 5. Stricter LKPM Reporting Requirements
- Legal and Licensing Solutions
The Provincial Government of Bali officially deactivated Foreign Direct Investment (PMA) licensing access for 18 Indonesian Standard Industrial Classifications (KBLI) starting in the third week of May 2026. This policy follows an evaluation of PMA business licensing within low- and medium-low-risk categories.
Authorities identified indications that foreign investors were exploiting the risk-based licensing system to enter sectors reserved for local businesses and Micro, Small, and Medium Enterprises (MSMEs).
Many foreign investors were reportedly taking advantage of low-risk business categories, where licenses could be issued automatically based only on a Business Identification Number (NIB), without the requirement to obtain a standard certificate. Some businesses also used virtual offices.
This situation was considered to have contributed to unfair business competition. As a result, the Bali Provincial Government took firm action by closing OSS access to these 18 KBLI codes for PMA throughout Bali until further policy guidance is issued.
The following are the 18 KBLI codes for which OSS access has been closed to PMA throughout Bali:
Read More: Bali Property Investment 2026: New KBLI & PT PMA Regulations Explained
With the implementation of this new policy, several risks for foreign investors and PT PMA owners in Bali should be anticipated, including:
The OSS system will automatically block new KBLI registrations for the 18 sectors that have been closed to PMA in Bali.
Investors must be particularly careful when selecting a KBLI code and ensure that it accurately reflects their actual business activities and remains open to foreign investment. Choosing an inappropriate KBLI code may result in the rejection or suspension of business licenses.
The Bali Provincial Government has stated that it will take firm action against licensing violations. PT PMA companies must therefore ensure that all business operations are conducted in accordance with their existing licenses and legal documents.
The use of virtual offices to circumvent business domicile requirements is now subject to stricter monitoring and restrictions.
Companies that were already operating before the policy was introduced must still submit regular Investment Activity Reports (LKPM) until the government issues further technical guidance.
Although 18 PMA business sectors in Bali have been closed, Bali remains open to quality and responsible investment that complies with Indonesian laws and regulations. To avoid administrative sanctions and potential financial losses, conducting a legal compliance audit and reassessing the company's KBLI codes are important steps.
Pandara Prima is ready to assist your business in navigating the latest licensing regulations, managing PT PMA legal requirements, conducting KBLI eligibility audits, and fulfilling PBG and SLF documentation requirements in a secure and legally compliant manner.
Consult with the Pandara Prima expert team today about your investment and business licensing requirements in Bali!
