Starting your own business in Bali is entirely possible, even if you are not an Indonesian citizen. You can register a company, open a restaurant or launch your own project.
There are some caveats, though: certain business sectors are closed to foreign investors, and in 2026 the Bali authorities introduced additional restrictions. So before investing money and preparing documents, it is worth understanding which activities are permitted here and where to start.
Which business sectors are open to investment?
The main legal structure for foreign-owned businesses in Indonesia is the PT PMA (Perseroan Terbatas Penanaman Modal Asing). This type of company allows foreigners to operate commercially, hire staff and obtain the necessary licences legally.
Whether foreign ownership is allowed, however, depends on the business sector chosen and the corresponding KBLI code, the government's classification of business activities.
In May 2026, the Bali authorities suspended new applications from PT PMAs for 18 types of activity. The restrictions affect, among others:
- small hotels and certain types of tourist accommodation;
- real estate transactions;
- some types of management consulting;
- car and motorbike rental;
- retail sales of clothing, textiles and food;
- cafés and venues selling drinks;
- fitness centres and certain sports services.
The restrictions apply to new permit applications through the OSS system. No date has yet been set for lifting them.
Many sectors nevertheless remain open to foreign investors, including IT, digital services, certain types of consulting, tourism and restaurants. However, every project needs to be assessed individually.
Important: restaurants and cafés may fall under different KBLI codes. For example, restaurants were not included in the published list of restrictions, whereas cafés were. What matters, therefore, is not what the venue is called but what it actually does and how it is classified in OSS.
What is a PT PMA and how do you register one?
A PT PMA is an Indonesian company with foreign investment. Registering one requires at least two shareholders, who can be foreign or Indonesian individuals or legal entities.
The company must also have a director, responsible for management, and a commissioner, responsible for oversight. Registration involves several main stages:
- Choosing the business activity. Identifying the KBLI codes and checking restrictions on foreign capital.
- Setting up the company structure. Identifying the shareholders, allocating shares and appointing the director and commissioner.
- Registering the legal entity. Preparing the articles of association with a notary and registering the company with the Ministry of Law.
- Obtaining an NIB. Registering the business in the government OSS system.
- Opening a bank account and paying in the capital.
- Obtaining licences. Securing permits according to the type of activity and risk level.
Bear in mind that obtaining an NIB does not always mean you can start operating straight away. Some sectors require additional licences and certificates.
How much does it cost to set up a PT PMA in Bali?
Since October 2025, the minimum paid-up capital for a PT PMA has been 2.5 billion Indonesian rupiah per company.
There is a separate requirement for total investment: more than 10 billion rupiah per business activity and project location. Special calculation rules apply to some industries.
The paid-up capital is deposited into the company's bank account. During the first 12 months, it may only be used for business purposes, including purchasing assets, construction and operating expenses. It is also important to distinguish between the investment requirements and the cost of legally setting up the company.
Registering a PT PMA through Legal Indonesia costs from 31 million rupiah, including two KBLI codes. The standard processing time is about 3–4 weeks. The final cost and timeline depend on the company structure, the business activities and the permits required.
Can a PT PMA owner get a KITAS?
Yes. A foreign shareholder may apply for an E28A investor KITAS, provided that their personal stake in the PT PMA's capital is at least 10 billion rupiah. The investor KITAS is issued for 1–2 years and can be extended.
If the foreigner's stake is below the required threshold, an E23 work KITAS may be considered, depending on their position and the nature of their work.
Owning shares in a company does not in itself give a foreigner the right to do any kind of work in Indonesia.
PT PMA taxes and reporting
Once registered, the company must keep accounts, meet its tax obligations and file reports, even if the business is not yet making a profit.
Key requirements:
- Corporate income tax: a standard rate of 22%, with the possibility of applying statutory incentives.
- VAT: 12%, although the effective rate for most goods and services is 11%.
- VAT registration is mandatory once annual turnover exceeds 4.8 billion rupiah.
- LKPM investment reports are filed quarterly.
- The annual tax return is filed within four months of the end of the tax year.
New PT PMAs cannot use the concessional 0.5% turnover tax available to certain categories of small businesses. Missing reporting deadlines can lead to warnings, penalties and problems with licences.
Main risks when starting a business in Bali
One of the most common mistakes is registering a company without checking the KBLI codes first. As a result, an entrepreneur may end up with a legal entity but be unable to obtain a permit for the business they actually intend to run.
Other significant risks:
- Nominee owners. Registering shares in the name of an Indonesian citizen who formally holds them on behalf of a foreigner is against the law.
- An unsuitable registered address. Virtual offices are not permitted for all types of activity, and inspections of foreign companies in Bali have become stricter.
- Failing to meet investment requirements. It is not enough simply to state an investment plan at registration; the company must actually carry it out.
- Failing to file reports. Even a dormant company still has tax and investment obligations.
- Immigration violations. Registering a PT PMA does not replace obtaining the appropriate KITAS for a foreign owner or employee.
It is especially important to check whether the business can be registered in Bali specifically. A KBLI code that allows foreign investment at national level may face additional restrictions when registering in the province.
How to start a business in Bali with Legal Indonesia
Setting up a PT PMA starts not with preparing documents but with reviewing the business model, the chosen activity and the requirements for foreign investment.
Legal Indonesia's specialists can help you choose KBLI codes, check restrictions in OSS, decide on the company structure, register your PT PMA and obtain the necessary permits.
We also support companies after registration, helping with accounting, tax reporting, LKPM investment reports and immigration documents.
The Legal Indonesia team can help you assess the feasibility of opening your business in Bali, and calculate the investment required and the cost of registration.
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