Business in Bali in 2026: Opportunities Still Open to Foreigners

Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.

Short answer: Bali still has real business opportunities for foreigners, but fewer than two years ago. Since the third week of May 2026, foreign-owned companies (PT PMA) can no longer get new licences in Bali for 18 business codes, including villa and guesthouse rental, small hotels, cafés and bars, scooter and car rental, clothing retail, gyms and management consulting (ANTARA, 23 July 2026). Restaurants, larger hotels, technology and digital services, export trade, health, energy and property services sit outside that list, but each needs a PT PMA with IDR 2.5 billion (about USD 140,000) paid up against an IDR 10 billion investment plan (Withers). Demand is solid but no longer growing: foreign arrivals from March to August 2026 were 2.4% below the same months of 2025 (BPS Bali).

Several ideas in older Bali investment articles, ours included (villa rentals, co-living, boutique guesthouses), are now closed to new foreign companies, so this guide is built from the current rules and official data. Dollar figures use IDR 17,900 to USD 1, the rate on 5 October 2026 (Databoks Katadata), so treat them as rough.

If you already have a project in mind, our business setup team can check your exact business code against OSS before you commit any money. That check is the single most useful thing you can do in Bali right now.

What changed for foreign investors in Bali in 2026?

On 22 and 23 July 2026, Bali Governor Wayan Koster announced that the province had closed access to the OSS licensing system (Online Single Submission, the government portal that issues business licences) for foreign investment companies in 18 business classifications. He said the closure had applied across Bali since the third week of May 2026 and was approved by the Minister of Investment and Downstreaming, head of BKPM (NusaBali; Periskop).

The reasons given were direct: foreign companies crowding out local small businesses, investors using low risk codes that need only an NIB (Nomor Induk Berusaha, the business identification number) to avoid real capital, and companies run from virtual offices (ANTARA).

Every business activity in Indonesia has a KBLI code (Klasifikasi Baku Lapangan Usaha Indonesia, the standard business classification). Your company can only do what its KBLI codes allow. These are the 18 codes now closed to new PT PMA licences in Bali:

Source: list published by the Bali provincial government, as reported by NusaBali and Periskop, July 2026.

Three points matter more than the list itself:

• Existing licences are not automatically revoked. Companies already licensed must keep filing their LKPM (Laporan Kegiatan Penanaman Modal, the quarterly investment activity report) until the code is deactivated. The province said it will audit permits, locations, investment value and environmental obligations, and that regents and mayors will act against violations (Periskop).
• Adding a closed code to an existing PT PMA is treated like a new application, so it is blocked too.
• The rule is Bali only. Lombok, Jakarta and the rest of Indonesia are not covered. The governor’s original January 2026 request to BKPM was broader and also targeted all low and medium-low risk activities and virtual offices. Our own earlier update on this closure reported OSS refusing new Bali PMA applications for low and medium-low risk codes beyond the published list, so never assume a code is open until OSS has accepted it.

We covered the background in our news note on new PMA restrictions in Bali.

Which sectors are closed to foreigners everywhere in Indonesia?

Outside Bali’s local list, the national rule is simple: everything is open to foreign investment unless a law closes it, caps it or reserves it.

Only a short list is fully closed nationwide. Law No. 6 of 2023 on Job Creation, which amended Article 12 of the Investment Law, closes class I narcotics cultivation, gambling and casinos, fishing species listed in CITES Appendix I, harvesting coral from nature, chemical weapons, ozone depleting chemicals, and activities reserved to the central government (UU 6/2023, BPK legal database).

Presidential Regulation No. 10 of 2021, amended by No. 49 of 2021, is the “positive list”. It sets priority sectors, activities reserved for cooperatives and small businesses, activities with a foreign ownership cap and activities with special conditions (Perpres 10/2021; Perpres 49/2021). Most service, trade, tech and hospitality codes are 100% open at national level. In Bali, you now check two layers: the national positive list, then the provincial closure.

Is Bali still a good market? What do the numbers say?

Bali’s economy is healthy, but tourism has plateaued. Here is what Statistics Indonesia (BPS) for Bali reports:

Sources: BPS Bali tourism, August 2026; BPS Bali tourism, August 2025; monthly releases January to August 2026 and March to August 2025 (BPS Bali release list), totals calculated by ILA; BPS Bali GDP Q4 2025; BPS Bali GDP Q2 2026.

The reading is not “Bali is booming”. It is: a large, stable visitor base, a weak spot in small accommodation (where 43% occupancy explains why the province closed villa and guesthouse codes), and an economy where more than a fifth of output comes from hotels, restaurants and cafés. The opportunities are in serving that base better, or in serving the businesses that serve it, not in adding more rooms.

Old claims you may still read online, such as “15% rental yields” and “80% occupancy”, do not match official occupancy data. Build your plan on BPS figures and your own costs.

What are the best business opportunities in Bali for foreigners?

Below are the areas where a new PT PMA can still be licensed in Bali, with the demand evidence and the main condition for each. “Not on the 18 list” means the code was not named in July 2026. It does not replace an OSS check.

Restaurants and food service

Food remains the most accessible hospitality business for foreigners. A restaurant code is not on the closed list. The trap is the concept: if your plan is really a coffee shop, it falls under 56303, which is closed. A bar has its own code (56301), which is not on the closed list, but it still needs the alcohol licences. Serving alcohol needs a separate alcohol licence (our alcohol licence service). For the full step by step, read our guide to opening a restaurant in Bali.

Technology, digital and creative services

Bali’s large remote worker community has made it a base for software studios, agencies and online businesses. The national government is also pushing this angle: the Special Economic Zone (KEK) Kura Kura Bali, in Serangan, is being positioned for artificial intelligence, digital research and development, semiconductors and university partnerships, and hosts the Tsinghua Southeast Asia Center. Indonesia has 25 special economic zones with about USD 20.7 billion of cumulative investment and 481 companies (KEK National Council, 5 October 2026).

Two cautions. Many foreigners set up “consulting” companies under 70209 because it was quick. That code is now closed, so pick the code that describes what you actually sell. And working for foreign clients on a remote worker permit is different from running an Indonesian company: if you invoice Indonesian clients, you need a company and a KITAS (limited stay permit) that allows work, not the E33G remote worker visa.

Wellness and health

The easy wellness formats are now closed to foreign companies: gyms and studios (93116) and retreat accommodation (55900 and small hotels). What remains is the higher barrier end, such as clinics and medical aesthetics, which need Indonesian licensed doctors, health permits and compliant premises. A foreign-owned yoga retreat with rooms is no longer licensable for a new PT PMA in Bali unless the building is a large hotel.

Education and training

Demand is real, and our international schools guide shows how tight school places are. But formal education is one of the hardest sectors for foreigners: foreign-invested formal schools are, in practice, limited to special economic zones or run through a licensed Indonesian school (SPK) partnership. Short courses and corporate training are easier, but check the KBLI and its risk level first.

Property services, not property ownership

Foreigners still buy leaseholds and use rights in Bali, and that needs its own care (see how to buy property in Bali). What changed is the rental business: a new PT PMA can no longer be licensed under 68111 or 55900 to rent out villas in Bali. Our guide on renting out property as a foreigner explains what existing owners can do. The services around property, such as brokerage and management on a fee basis (68200), construction-related services and design, are where a new foreign company can still operate, subject to sector licences.

Renewable energy, water and waste

Solar installation, energy efficiency, water treatment and waste services sell to hotels, villas and restaurants rather than to tourists, so they depend less on arrival numbers. These activities are usually rated medium-high or high risk, so licensing takes longer, but the 2026 closure did not touch them.

PT PMA or PT PMDN with a local partner: which structure?

A PT PMA (Penanaman Modal Asing) is an Indonesian limited company with at least one foreign shareholder. A PT PMDN (Penanaman Modal Dalam Negeri) is a company owned only by Indonesians. A foreigner cannot hold shares in a PT PMDN.

Sources: Withers on BKPM Regulation 5/2025; Immigration, E28A.

Why nominee structures fail

The 2026 closure has revived an old idea: “put the company in a local friend’s name”. The law is explicit. Article 33 of the Investment Law (Law No. 25 of 2007) forbids domestic and foreign investors from making agreements or statements that a company’s shares are held for and on behalf of someone else, and declares any such agreement null and void (UU 25/2007, BPK legal database).

In practice, that means:

• You cannot enforce your side agreement in court. If the nominee sells, borrows against the company or dies, your money follows the shareholder register, not your private contract.
• Your residence permit cannot rest on a company you do not legally own.
• The province has said it will audit companies and act against permit violations, and structures built to get around a closure are an obvious target.

A legitimate local partnership is different: the Indonesian partner really owns and runs the PT PMDN, and you are paid through a documented employment, loan, licence or franchise agreement that reflects real value. That can work. It needs proper contracts and due diligence on the partner, and you must accept that ownership is theirs.

How much capital do you need to start a business in Bali?

Sources: Withers; Immigration, E28A; BKPM Regulation 5/2025.

On top of company capital, budget for a real office lease (Bali is watching virtual offices closely), fit-out, salaries, licences, accounting and your own permits. Our guides on setting up a PT PMA and which visa to live or invest in Bali cover setup costs and the founder visa trap in detail.

What taxes will a Bali business pay?

The older version of this article said Indonesian companies pay “only 0.5% income tax”. That was misleading. The standard corporate income tax rate is 22% of net profit. Companies with turnover up to IDR 50 billion (about USD 2.8 million) get a 50% discount on the rate for the part of profit linked to the first IDR 4.8 billion (about USD 268,000) of turnover, and certain businesses under IDR 4.8 billion turnover can pay a final 0.5% on turnover instead (PwC Worldwide Tax Summaries). Which regime applies to your PT PMA, and for how many years, depends on your facts.

Dividends paid to a foreign shareholder carry 20% withholding tax, reduced under a tax treaty (for example 10% or 15% depending on the treaty and holding) (PwC, withholding taxes). Add monthly payroll and withholding filings, VAT once you pass the threshold, and Bali’s local hotel and restaurant tax where relevant. Our PT PMA taxation guide goes through each one.

Which licences does a business in Bali need?

Licensing runs through OSS under Government Regulation No. 28 of 2025 on risk-based business licensing, in force since 5 June 2025 (PP 28/2025, BPK legal database). The risk level of your KBLI decides what you need:

1. Low risk: NIB only. This is exactly the category Bali criticised for being too easy, and most of the 18 closed codes sit here.
2. Medium-low risk: NIB plus a self-declared standard certificate (Sertifikat Standar).
3. Medium-high risk: NIB plus a standard certificate verified by the relevant ministry or local office.
4. High risk: NIB plus a full licence (izin), often with environmental approval.

After the company exists you also need a tax number (NPWP), a building approval (PBG) and certificate of fitness (SLF) for any premises you build or convert, zoning that matches your activity, and LKPM reports every quarter. Clinics, dive operators, recruitment agencies and real estate brokers need extra sector approval before they can operate. The PT PMA compliance guide lists the recurring duties.

Hiring is open to locals without limit. Hiring a foreigner needs an approved RPTKA (Rencana Penggunaan Tenaga Kerja Asing, the foreign worker plan) and payment of the foreign worker compensation fund (DKPTKA), under Government Regulation No. 34 of 2021 (PP 34/2021).

What are the main risks of doing business in Bali?

• Rule changes with short notice. The 18 code closure applied from May 2026 and was only announced in July. Build your plan so it survives if your code is restricted later, for example by keeping the option to operate from Lombok or another province.
• Choosing the wrong KBLI. A company registered as “consulting” or “café” in Bali can no longer change into what it should have been. Pick codes for the business you will actually run.
• Nominee and “borrowed” companies. Void in law, as above. Buying an existing licensed PT PMA is legal, but only after due diligence on its licences, tax filings, LKPM history and debts. Many dormant Bali companies have years of missing reports.
• Zoning and building permits. Many Bali buildings were put up without a PBG or SLF, and in zones that do not allow commercial use. A business in the wrong building can be closed regardless of its company licences.
• Oversupply. Non-star lodging at 43% occupancy is a warning for any tourism concept that depends on volume.
• Concentration. One market, Australia, supplies almost a quarter of arrivals. Flight disruptions, exchange rates or a volcano can cut demand fast.
• Working before your permit is ready. Running the business on a visit visa or a remote worker visa is a violation, and the risk is deportation, not just a fine. See how to work legally in Bali.

How can you test a Bali business idea before investing?

1. Come on the right visa. A C12 or D12 pre-investment visa covers feasibility work and meetings. It does not allow you to work or earn locally.
2. Check your KBLI in OSS first. Before you sign a lease, confirm the code, its risk level and whether OSS accepts a PMA application for it at your Bali address.
3. Run the numbers on official data. Use BPS occupancy and arrival figures, not agent brochures.
4. Compare locations. If your activity is closed in Bali, the same PT PMA can often be licensed in Lombok or elsewhere.
5. Consider a representative office if you only need market presence, or an acquisition of an existing compliant company if your code is closed, with full due diligence.

Talk to us before you sign a lease

Expensive mistakes in Bali rarely come from the idea. They come from structure: a closed KBLI, a nominee, a company that never filed LKPM, or a building that could never be licensed. Fixing those after the money is spent is slow and expensive.

Contact our business setup team with your idea and your budget. We will tell you whether the activity can be licensed for a PT PMA at a Bali address today, which structure fits, and what the capital and permits really look like. Founders who want to move ahead can then go straight to PT PMA registration.

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Frequently asked questions

What business can a foreigner open in Bali in 2026?

Through a PT PMA, a foreigner can still open restaurants, large hotels (buildings of 6,000 m2 or more), technology and digital businesses, export and wholesale companies, health services and property services on a fee basis. Villas, guesthouses, small hotels, cafés, gyms, scooter rental and clothing shops are closed to new foreign companies in Bali since May 2026.

Can foreigners still run villa rental businesses in Bali?

Not through a new PT PMA. KBLI 55900 (other accommodation) and 68111 (real estate owned or leased) are among the 18 codes closed in Bali. Companies already licensed keep their licences for now but must keep filing LKPM. Owners should read our guide on renting out property as a foreigner.

What is the most profitable business in Bali?

There is no official ranking, and profits depend on location and execution. The demand data points to food service (food and accommodation make up 21.91% of Bali’s economy) and to services sold to tourism businesses, such as marketing, technology, energy and maintenance, rather than more small accommodation, where occupancy was 43% in August 2026.

How much money do I need to start a business in Bali?

A PT PMA needs IDR 2.5 billion (about USD 140,000) paid up per KBLI and an investment plan of IDR 10 billion (about USD 559,000), which can include equipment, permits and operating costs. An investor KITAS needs IDR 10 billion of shares in your own name.

Can I open a business in Bali with a local partner instead?

Yes, if the partner genuinely owns and runs a PT PMDN and you are paid under proper contracts, or if the partner becomes a minority shareholder in your PT PMA. Holding shares through a nominee is void under Article 33 of Law 25/2007 and offers no legal protection.

Does the 2026 restriction apply to all of Indonesia?

No. The 18 code closure applies to Bali only. Lombok, Jakarta and other provinces follow the national positive list, so the same activity may still be licensable for a PT PMA outside Bali.

Is the 0.5% tax rate available to my Bali company?

Possibly, but it is not the general rule. Corporate income tax is 22%, with a discount for smaller companies, and a final 0.5% on turnover applies only to certain businesses with turnover up to IDR 4.8 billion. Check eligibility for your company before you plan around it.

Sources

1. Bali blocks foreign investment in 18 business categories, ANTARA, 23 July 2026
2. Gubernur Koster batasi akses OSS bagi PMA, lindungi ruang usaha UMKM Bali, NusaBali, 22 July 2026
3. Bali tutup akses PMA di 18 bidang usaha, Periskop, 23 July 2026
4. Perkembangan Pariwisata Provinsi Bali Agustus 2026, BPS Bali
5. Perkembangan Pariwisata Provinsi Bali Agustus 2025, BPS Bali
6. Berita Resmi Statistik, monthly tourism releases, BPS Bali
7. Pertumbuhan Ekonomi Bali Triwulan IV-2025, BPS Bali
8. Pertumbuhan Ekonomi Bali Triwulan II-2026, BPS Bali
9. Indonesia eases foreign capital rules: key takeaways from BKPM Regulation No. 5 of 2025, Withers
10. Peraturan Menteri Investasi dan Hilirisasi/BKPM No. 5 Tahun 2025, BPK legal database
11. UU No. 25 Tahun 2007 tentang Penanaman Modal, BPK legal database
12. UU No. 6 Tahun 2023 tentang Cipta Kerja, BPK legal database
13. Perpres No. 10 Tahun 2021 tentang Bidang Usaha Penanaman Modal, BPK legal database
14. Perpres No. 49 Tahun 2021, BPK legal database
15. PP No. 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko, BPK legal database
16. PP No. 8 Tahun 2021 tentang Modal Dasar Perseroan, BPK legal database
17. PP No. 34 Tahun 2021 tentang Penggunaan Tenaga Kerja Asing, BPK legal database
18. E28A Visa Investor, Directorate General of Immigration
19. Indonesia: Taxes on corporate income, PwC Worldwide Tax Summaries
20. Indonesia: Withholding taxes, PwC Worldwide Tax Summaries
21. KEK Kura Kura Bali jadi platform strategis, KEK National Council, 5 October 2026
22. Rupiah exchange rate at IDR 17,916.4 per US dollar, 5 October 2026, Databoks Katadata