Opening a company in Bali for 2026–2027 remains attractive for foreign and domestic investors. The province is implementing stricter regulations, particularly for PT PMA entities perceived as ‘paper companies’. These regulatory adjustments are reshaping the landscape for new company setups in Bali.
Bali Business Trends: What Industries Are Most Open to Foreign Investment Next Year
Bali accounts for a significant portion of Indonesia’s foreign-investment companies. Regulatory changes are expected to influence how and where new foreign-owned entities (PT PMA) can be established. This briefing provides an overview relevant to setting up a business in Bali, covering market dynamics, typical costs, key locations, main participants, regulations, investor profiles, and the 2027 outlook.
1. Market Size and Growth (Company Formation / Foreign-Investment Activity)
Foreign-Investment Companies (PT PMA) in Bali
- Between 2021–2025, Bali registered 19,262 PT PMA business actors, representing approximately 40% of all Business Registration Numbers (NIB) issued nationally.[1]
- These Bali-based PT PMA entities initiated 55,458 registered projects during the same period.[1]
- This concentration makes Bali one of Indonesia’s densest provinces for foreign-investment corporate presence, especially when considering its population and land area.[1][3]
Foreign Investment Realisation in Bali
Bali recorded IDR 25.60 trillion in realised foreign investment (PMA) in 2025. This investment spanned hospitality, wellness, digital services, F&B, and other sectors.[1] At an exchange rate in the IDR 15,000–16,000 per USD range, this equates to approximately USD 1.6–1.7 billion in realised PMA inflows for Bali in 2025.
Indonesia-Wide Investment and Sector Growth Context
Indonesia transitioned from a Negative Investment List to a Positive Investment List (Presidential Regulation No. 10/2021). This regulation opened 246 priority business fields to foreign capital, including hospitals, commercial digital platforms, and logistics.[3]
Key growth sectors nationally include:
- Health and wellness: Compound Annual Growth Rate (CAGR) 10–15%.[3]
- Experiential travel: CAGR approximately 12%.[3]
- Premium/luxury goods: sustained demand growth in major retail centres.[3]
Digital economy growth is notable across e-commerce, fintech, and digital media.
2. Key Hubs and Locations for PT PMA in Bali
The primary locations for foreign investment and company setup in Bali are:
- Badung Regency: This area, encompassing Seminyak, Canggu, Pererenan, and Uluwatu, remains the most active for foreign investment. It hosts a large concentration of villas, hotels, F&B establishments, and digital nomad communities. Regulatory scrutiny is increasing here due to high development density.
- Denpasar: As the provincial capital, Denpasar is a hub for administrative services, government offices, and local businesses. It is less prominent for direct foreign lifestyle investment compared to Badung but essential for corporate infrastructure.
- Gianyar Regency: Ubud is a key area within Gianyar, known for wellness, arts, and cultural tourism. It attracts investments in boutique hotels, retreat centres, and creative industries.
- North Bali (Buleleng Regency): This region is targeted for future infrastructure development and offers opportunities in eco-tourism and marine activities. Investment here is less developed but has potential for long-term growth.
3. Main Players in Bali’s Investment Landscape
The investment landscape in Bali involves:
- Foreign Investors: Predominantly from Australia, Europe, Singapore, and North America, these investors focus on tourism, hospitality, F&B, digital services, and real estate.
- Local Businesses and Developers: Indonesian entities often partner with foreign investors or develop properties and businesses independently, especially in hospitality and retail.
- Government Bodies: The Investment Coordinating Board (BKPM), provincial and regency governments regulate and facilitate investment. Their policies directly impact the ease of setting up a business in Bali.
- Corporate Service Providers: Firms like Open Company In Bali assist foreign investors with company registration, licensing, and compliance, navigating the regulatory environment.
4. Regulations and Compliance for Setting Up a Business in Bali
Indonesia’s regulatory framework for foreign investment is governed by the Investment Law (Law No. 25/2007) and Presidential Regulation No. 10/2021 on the Positive Investment List.
Key Regulatory Changes and Trends
- Tightening of PT PMA Regulations: Bali is increasing scrutiny on ‘paper companies’—entities registered without substantial operational presence or genuine economic activity. This aims to ensure PT PMA entities contribute tangibly to the local economy.
- Minimum Investment Requirements: The minimum capital requirement for a PT PMA is IDR 10 billion (approximately USD 650,000–700,000, depending on FX rates), with at least 25% paid-up capital. This excludes land and building costs.
- Business Licensing via OSS System: All business licenses are processed through the Online Single Submission (OSS) system, which streamlines permits for NIB, business licenses, and operational permits.
- Environmental and Zoning Compliance: Increased enforcement of environmental impact assessments (AMDAL) and zoning regulations, particularly in environmentally sensitive areas and high-density tourism zones.
- Local Content Requirements: Certain sectors may have requirements for local content or partnerships, although the Positive Investment List generally reduces restrictions on foreign ownership.
2027 Note: By 2027, expect more rigid enforcement of operational substance for PT PMA entities in Bali, with increased audits targeting companies that do not demonstrate active business operations or significant local employment beyond initial setup. This will particularly affect holding companies or those with minimal physical presence.
5. Buyer and Investor Profiles in Bali
Investors setting up a business in Bali typically fall into several categories:
- Lifestyle Entrepreneurs: Individuals seeking to operate boutique hotels, villas, F&B establishments, or wellness centres. They are often drawn to Bali’s tourism appeal.
- Digital Nomads and Tech Founders: Those establishing digital marketing agencies, software development firms, co-working spaces, or e-commerce businesses, capitalising on Bali’s growing digital ecosystem and talent pool.
- Real Estate Developers: Investors focusing on residential villas, commercial properties, or tourism infrastructure. They often face complex land acquisition and zoning regulations.
- Health and Wellness Investors: Entities developing hospitals, clinics, medical tourism facilities, or wellness resorts, aligning with Indonesia’s national health sector growth.
- Hospitality Groups: Larger organisations investing in hotels, resorts, and integrated tourism developments.
6. Typical Cost Ranges for Setting Up a PT PMA in Bali
The costs involved in setting up a PT PMA in Bali vary based on the business type and required permits. Below are approximate ranges:
| Cost Category | Approximate Range (IDR) | Approximate Range (USD) |
|---|---|---|
| Company Registration (Legal Fees) | IDR 20,000,000 – 50,000,000 | USD 1,300 – 3,300 |
| Minimum Paid-Up Capital | IDR 2,500,000,000 (25% of IDR 10B) | USD 160,000 – 170,000 |
| Business Licenses (OSS System) | IDR 5,000,000 – 20,000,000 | USD 330 – 1,300 |
| Office Lease/Virtual Office (Annual) | IDR 15,000,000 – 50,000,000+ | USD 1,000 – 3,300+ |
| Monthly Accounting & Tax Compliance | IDR 3,000,000 – 10,000,000+ | USD 200 – 650+ |
| Visa & Work Permit (KITAS) per person | IDR 15,000,000 – 25,000,000 | USD 1,000 – 1,600 |
These figures are indicative and can fluctuate based on specific business activities, location, and the complexity of required permits. The minimum paid-up capital of IDR 2.5 billion is a legal requirement, not a service fee.
7. 2027 Outlook for Foreign Investment in Bali
The outlook for foreign investment in Bali towards 2027 remains positive for genuinely operational businesses. The regulatory environment is becoming more structured, favouring investors who commit to sustainable development and contribute to the local economy. Sectors like health and wellness, sustainable tourism, digital services, and premium F&B are expected to continue attracting significant foreign capital.
Increased infrastructure development in areas like North Bali could diversify investment opportunities beyond the heavily concentrated south. However, investors must be prepared for stricter compliance checks and a focus on operational substance over mere registration. Engaging with experienced corporate service providers is essential to navigate these evolving requirements and ensure a compliant setup for your business in Bali.
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