Governor Wayan Koster announced the need to reform the OSS RBA (Online Single Submission – Risk Based Approach) system — a national online platform for business registration and licensing. He emphasized that the national standards do not consider Bali's specific situation with its high investment density and unique socio-cultural structure.
According to Koster, the current system excludes local authority checks, allowing foreign investors (PMA — Penanaman Modal Asing) to obtain permits without regional approval. "With just 10 billion rupiahs, foreigners freely enter the market, but often these are just "on paper" transactions," he noted. In Badung, more than 400 foreigners are operating in the transport rental, construction, and restaurant sectors, which, according to the governor, pushes out local small businesses.
Koster also pointed out that due to lack of control, construction permits are issued even in protected zones, including coastlines and riverbeds. He called the widespread presence of chain minimarkets a consequence of overly liberal OSS rules. As a solution, the governor proposed introducing specific regional powers for Bali and raising the minimum capital threshold for foreign investors from 10 to 100 billion rupiahs to eliminate small and fictitious projects.
Regional Secretary Dewa Made Indra supported his initiative, noting that today permits can be obtained "just by application," without capital and document verification. He suggested raising the tourism sector classification in the OSS system from low to high risk, considering its impact on nature and society.
"Bali cannot be compared with other regions. We need our own rules and stricter regulations to protect local entrepreneurs," Koster emphasized. A commission has already been established to audit tourism permits issued to foreigners. Nationally, more than 267 fictitious PMA projects registered through OSS, but not actually operating, have been annulled.
The Governor insists: Bali needs special legal norms that will allow adapting investment rules to local conditions and ensure the island's residents' right to participate in the economy.
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