Bali has long been a dream destination not just for holidaymakers, but also for entrepreneurs looking to start a Bali business in paradise. However, if you are planning to set up a Bali foreign-owned company, there is a major new update you need to know about.
Also known as a PT PMA, the Bali Regional Government has recently introduced strict new limitations on the types of Bali businesses foreigners in Bali can register. This doesn’t mean that Bali isn’t closed to business, it just means that the rules have changed, and understanding these changes early will save you a lot of time, stress and money.
What is Changing?
In Indonesia, Bali businesses are categorised by their “risk level” (ranging from Low Risk to High Risk) based on their industry type. These industry types are tracked using specific government codes called KBLI numbers.
Following an official request from the Bali Government (Letter Number B.27.000/642/PM/DPMPTSP), the online registration system has officially closed down new Bali foreign applications for businesses categorised as “Low Risk” and “Medium-Low Risk.”
In plain English: If your business idea falls into a category that the government considers simple or lower risk, foreigners in Bali can no longer register a new company for it. Instead, new Bali foreign-owned companies are now required to operate only in industries categorised as Medium-High Risk or High Risk.
Which Businesses Are Affected?
To give you an idea, many of the most popular lifestyle and service Bali businesses set up by expats are now restricted. Some everyday examples of now-closed categories include:
- Consulting Services (e.g., general business consulting)
- Real Estate & Villa Rentals (e.g., setting up a simple rental management company)
- Clothing & General Retail Stores (e.g., opening a boutique shop)
- Fitness Centres & Gyms
- Event Organizers
- Advertising Agencies
What If I Already Have an Active Company?
If you already have an active PT PMA operating under one of these lower-risk categories, your company is not being closed down. However, the Indonesian government’s business registration department (DPMPTSP) has made it clear that active Bali companies in these sectors will face much stricter inspections, closer audits, and thorough compliance reviews moving forward.
It is more important than ever to ensure your corporate paperwork, taxes, and licenses are 100% correct.
Why is the Government doing this? The goal is to protect local small-and medium-sized Balinese and Indonesian businesses from being crowded out by smaller foreign operations, while steering Bali foreign investment toward larger projects that bring higher value, infrastructure, and unique development to the island.
What Should You Do Next?
If you were getting ready to start a business in Bali, do not panic. This is exactly where professional guidance makes all the difference. Here is how you should handle it:
- Review Your Business Classification: We need to look closely at your business model. Often, we can find a Medium-High or High-Risk business category that perfectly fits your long-term goals while complying fully with the new rules.
- Audit Your Existing Company: If you already run a business in Bali that falls into the restricted categories, let MPG Bali Visa perform a compliance health check so you are fully prepared for any upcoming government audits.
Navigating Indonesian business regulations can feel like a maze, but you don’t have to do it alone. At MPG Bali Visa, we track these legal updates daily so that your investment remains safe, legal, and stress-free.
PT PMA In Bali: Your Bali Business Dream Into Reality
Setting up a PT PMA with MPG Bali Visa means you aren’t just starting a company; you’re getting a secure, smooth and seamless start in Indonesia. You get the documents, the strategy, and the support to turn your Bali business dream into a legal reality.
The most important thing to note is this: MPG Bali Visa does not take shortcuts, nor do we overpromise or cut corners. We operate with integrity, transparency, credibility and trust, values reflected in the testimonials of thousands of satisfied clients.
Contact MPG Bali Visa Today.
Contact MPG Bali Visa today for all your Bali business and visa needs. From PT PMA set up to Visa on Arrival (VOA), Tourist and Visit Visas, Visa Extensions, KITAS, and KITAP, we’ve got you covered. With 25 years of proven experience and a trusted track record, MPG Bali Visa is your trusted, go-to agent on the island.
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