Navigate New Bali Business Rules with KBLI 2025

Setting up a foreign-owned company (PT PMA) in Bali has become more selective under KBLI 2025 and the province’s tighter investment controls. 

Since January 2026, Bali has clearly restricted new foreign investment applications under low-risk and medium-low-risk KBLI classifications, following Governor Letter No. B. 27.000/642/PM/DPMPTSP. This transparency aims to help investors understand the current landscape and plan accordingly. 

It is crucial to thoroughly review the proposed business activity, risk level, location, and operating model before starting a PT PMA application to ensure compliance with new regulations. 

Key Takeaways

• Since early 2026, Bali has restricted new PT PMA registrations under low-risk and medium-low-risk KBLI classifications, following Governor Letter No. B.27.000/642/PM/DPMPTSP. 
• While medium-high- and high-risk activities may remain open, approval depends on compliance with foreign ownership rules, zoning, investment value, and licensing requirements. This clarity encourages investors to explore viable sectors with confidence. 
• Under KBLI 2025, issued through BPS Regulation No. 7/2025, companies must ensure their registered activities and NIB codes align with the latest classification. 
• BKPM Regulation No. 5/2025 generally requires PT PMAs to invest more than IDR 10 billion per five-digit KBLI and location, excluding land and buildings, and to have at least IDR 2.5 billion in paid-up capital. 

Bali PT PMA Eligibility by KBLI Risk Tier (2026) 

Risk Tier	New PMA Registration in Bali	Typical License Required	Example Sectors
Low Risk	Blocked for new PMA (Bali domicile)	NIB only	Small retail, motorcycle/vehicle rental, general consulting
Medium-Low Risk	Blocked for new PMA (Bali domicile)	NIB + self-declared standard certificate	Travel agency services, select F&B retail codes
Medium-High Risk	Open	NIB + verified standard certificate	Larger F&B operations, wellness centers, select real estate
High Risk	Open	Full business license	Hotels/resorts, large-scale developments, manufacturing

Note: Companies with a physical address outside Bali (e.g., Jakarta) can register under Low or Medium-Low Risk codes and add Bali as a branch location. 

What Has Changed for PT PMA Establishment in Bali? 

In January 2026, the Governor of Bali formally proposed restricting new PT PMA applications under low-risk and medium-low-risk KBLI classifications, as well as discontinuing the use of virtual offices as registered addresses for foreign-owned companies. 

The policy has since been reflected in Online Single Submission (OSS), where a Bali-domiciled PT PMA selecting a low-risk or medium-low-risk KBLI may now face automatic rejection. 

This doesn’t signal the end of foreign investment in Bali. Instead, it redirects new PT PMA activity toward businesses with stronger operational substance. 

These may include hotels, larger food and beverage operations, digital services, and other sectors that require genuine business operations rather than companies established mainly to support a KITAS. 

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Is Bali Only Open to Medium-High to High-Risk Companies Now? 

Yes, for new PT PMA registrations. Medium-high and high-risk activities may remain available, but approval is not automatic. 

Applications can still be delayed or rejected if the KBLI doesn’t match the actual business model, the location fails zoning or Conformity of Space Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang – KKPR) requirements, or the investment and licensing conditions are not met. 

For genuinely low-risk business models, one possible structure is to establish the PT PMA outside Bali, such as in Jakarta, and register the Bali operation as a branch or additional business location.  

However, the Bali operation must still comply with the applicable KBLI, zoning, licensing, and local requirements.

How KBLI 2025 Affects Bali Business Setup 

KBLI 2025, issued under BPS Regulation No. 7/2025, replaced KBLI 2020 and expanded the classification system from 21 to 22 categories, with new codes for AI, data centers, carbon capture, and digital platforms.  

Be aware that the transition deadline of June 18, 2026, has already passed, and operating under an unaligned KBLI 2020 code risks having the NIB flagged in OSS, emphasizing the need for timely updates. 

For Bali specifically, KBLI 2025 affects several parts of the setup process: 

• Business Scope: The five-digit code must match the company’s actual revenue activity. 
• Risk Tier & Bali Eligibility: Some KBLI 2020 codes are split into multiple KBLI 2025 codes with varying risk levels. A code blocked before 2025 may be open afterward, and vice versa. 
• Licensing: Determines whether an NIB alone suffices, or whether a verified certificate or a full license is required. 
• Investment Plan: Capital obligations are determined by the KBLI code for each location, in accordance with BKPM Regulation No. 5 of 2025. 

Choosing the correct KBLI is crucial, as it can prevent licensing delays or the need for later amendments. Proper selection ensures smoother setup and builds confidence in the process.  

Review the KBLI 2025 code before establishing the company or securing a business location. Talk to our team -> 

What Foreign Investors Must Check Before Establishment 

Before setting up a PT PMA in Bali, investors should confirm: 

Business Model 

Clarify the company’s activities, customers, contracts, revenue sources, and daily operations. The selected KBLI must reflect how the business will actually operate and earn income. 

KBLI 2025 Code and Risk Tier 

Verify both the five-digit KBLI code and its risk classification (Low, Medium-Low, Medium-High, High) using the official conversion table, as the risk tier directly affects Bali PMA eligibility and procedural requirements. 

Foreign-Ownership Rules 

Check whether the activity is: 

• Open to full foreign ownership 
• Subject to an ownership limit 
• Reserved for Indonesian businesses 
• Subject to partnership or sectoral requirements 

Complete this review before finalizing the shareholders. 

Business Location 

Confirm that the proposed site complies with zoning, building-use, environmental, tourism, and local-area requirements. A registered office or virtual office may not be sufficient when the activity requires genuine operational premises. 

Investment and Capital Plan 

Under BKPM Reg. 5/2025, a PT PMA generally requires: 

• Investment exceeding IDR 10 billion per five-digit KBLI and project location, excluding land and buildings 
• At least IDR 2.5 billion in placed and paid-up capital per company 

Different investment calculations may apply to sectors such as property, accommodation, construction, manufacturing, and food services. 

Incorporation Steps 

The incorporation process generally includes: 

• Company-name reservation 
• Deed of establishment 
• AHU legal-entity approval 
• Tax registration 
• OSS registration 
• NIB issuance 

An NIB does not always authorize immediate operations. 

Operational Licences 

Medium-high-risk activities normally require a verified Standard Certificate, while high-risk activities require a business license. 

Additional approvals may include environmental, building, tourism, health, product, safety, or location-specific licenses. 

These requirements should be identified before the company begins operating.

Set Up Your Bali Business on the Right Foundation 

A business setup should not begin with a generic KBLI selection. It should begin with a review of the actual activity, foreign-ownership position, Bali eligibility, location, investment plan, licensing obligations, and tax structure. 

InCorp Indonesia supports foreign investors with: 

• KBLI 2025 Review: Confirm the correct business activity and risk classification. 
• PT PMA Establishment: Handle company registration, corporate documents, tax registration, and OSS submissions. 
• Licensing Support: Coordinate NIB, Standard Certificates, business licenses, and sector-specific approvals. 
• Tax and Accounting Setup: Prepare the company’s tax, bookkeeping, payroll, and reporting structure from the start. 

Fill out the form below to assess your KBLI 2025 and Bali business setup before starting the application. 

Frequently Asked Questions