As reported in 2026, new foreign-owned (PT PMA) company registrations are blocked in 18 everyday categories in Bali — including cafés and bars, villa rentals, hotels under 6,000 m², gyms, retail and consultancies — while existing licences continue. Larger hotels, Special Economic Zones and sectors such as specialist clinics, cold chain, waste and water remain open. Information only.
What exactly is blocked?
Since around May 2026, at the province’s request, OSS — Indonesia’s national online licensing system — has blocked new PT PMA registrations in 18 categories in Bali:
- hotels under 6,000 m², and villa and property rentals;
- cafés and bars;
- clothing, textile and food retail;
- gyms and sports facilities;
- management consultancies;
- car and scooter rentals, tailors and traditional-medicine shops.
It is an administrative block that applies to Bali only; the national investment law has not changed. Lombok, Labuan Bajo and the rest of the eastern corridor are not covered, as reported — see where Ascendure backs projects. Information only.
Do existing businesses have to close?
No. A licence issued before the block keeps operating with normal reporting. That makes a clean, licensed operating business more valuable than it was before. For how established operators fund growth, see gyms and wellness studios and restaurants, cafés and beach clubs.
Can an existing business open a second location?
Not simply by signing a new lease. A new site normally needs a location amendment in OSS, which is reportedly being refused for the 18 codes. The route reported to work is buying the company that already holds a licence at that location. Confirm with counsel before any money moves. See opening a second location.
Can a foreigner buy an existing licensed business?
Yes — the licence sits inside the company, so you buy its shares. Checking it properly is critical:
- Do the KBLI codes match what the business actually does? (See KBLI codes explained.)
- Is the NIB, the business number, clean?
- Are the PBG and SLF — building approval and certificate of function — genuine?
- Is tax up to date?
Can an Indonesian partner open it instead?
A genuinely Indonesian-owned company is not affected by the block. Nominee arrangements — a foreigner behind a local name — are legally void, and enforcement has been rising since 2025.
What is still open to new foreign investment?
Hotels at scale (6,000 m² and above), the Special Economic Zones, and sectors the block does not touch: specialist clinics, cold chain and logistics, waste and water services, marinas, elderly care and food processing. See sectors open to foreign ownership.
Because it is an administrative block rather than a law, it can widen, narrow or lift. Plan on the current rules and check with Indonesian counsel before acting. Not legal advice.
Sources: Antara; DPMPTSP Bali; Indonesian legal advisories, 2026 — as reported. Rules move: verify current status with Indonesian counsel before acting. Not legal advice. General information about the Indonesian market, not legal, tax or financial advice.
Have a project in Bali, Lombok, Labuan Bajo, Sumba or elsewhere in Indonesia that needs completion or expansion capital?
Tell us about the project