Foreigners can own 100% of a restaurant in Bali in 2027 through a PT PMA (Perseroan Terbatas Penanaman Modal Asing) structure. This is facilitated by Indonesia’s Positive Investment List, which permits full foreign ownership in many business sectors, including F&B, making Bali a significant hub for foreign investment.
Why Foreigners Can Own 100% of a Restaurant in Bali in 2027: The PT PMA Advantage Explained
Opening a company in Bali as a foreign investor for 2026–2027 remains attractive. The province is simultaneously tightening regulations, particularly for PT PMA entities perceived as ‘paper companies’. Bali accounts for a very large share of Indonesia’s foreign-investment companies and is seeing regulatory moves that will reshape how and where new entities can be set up.
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, accounting for approximately 40% of all PMA Business Registration Numbers (NIB) issued nationally.
- These Bali-based PT PMA entities generated 55,458 registered projects over that period.
- This makes Bali one of Indonesia’s densest provinces in terms of foreign-investment corporate presence, especially relative to its population and land area.
Foreign Investment Realization in Bali
Bali recorded IDR 25.60 trillion of realised foreign investment (PMA) in 2025, across hospitality, wellness, digital services, F&B, and other sectors. At an exchange rate in the IDR 15,000–16,000 per USD range, this corresponds roughly to USD 1.6–1.7 billion in realised PMA inflows in Bali for 2025 (approximation based on typical FX rates).
Indonesia-Wide Investment and Sector Growth Context
Indonesia has shifted from a Negative Investment List to a Positive Investment List (Presidential Regulation No. 10/2021), opening 246 priority business fields to foreign capital, including hospitals, commercial digital platforms, and logistics. Key growth sectors nationally include Health and wellness (CAGR 10–15%), Experiential travel (CAGR approximately 12%), and Premium/luxury goods, which show sustained demand growth in major retail centers.
2027 note: By 2027, the full effects of Presidential Regulation No. 10/2021 regarding the Positive Investment List are expected to be firmly established, providing clear frameworks for 100% foreign ownership in specific restaurant categories under a PT PMA structure, subject to KBLI code alignment.
2. Typical Cost Ranges for PT PMA Setup in Bali (Approximate)
Setting up a PT PMA in Bali involves various costs, which can vary based on the complexity and specific requirements of the business.
| Cost Category | Approximate Range (IDR) | Approximate Range (USD) |
|---|---|---|
| Company Registration & Legal Fees | 20,000,000 – 50,000,000 | 1,300 – 3,300 |
| Virtual Office / Domicile Letter | 5,000,000 – 15,000,000 per year | 330 – 1,000 per year |
| Minimum Capital Requirement (Paid-Up) | 10,000,000,000 (standard for large) | 660,000 (standard for large) |
| Permits & Licenses (Sector-Specific) | Variable, from 5,000,000 | Variable, from 330 |
| Tax Registration (NPWP, NIB) | Included in legal fees | Included in legal fees |
Note: The minimum capital requirement of IDR 10 billion for PT PMA is for large-scale businesses. For smaller ventures, particularly in specific service sectors, exceptions or lower thresholds may apply under certain KBLI codes, allowing for a paid-up capital of IDR 2.5 billion. This requires careful consultation with a corporate services provider to ensure compliance and eligibility.
3. Key Hubs and Business Zones in Bali
Bali’s foreign investment activity is concentrated in specific areas:
- Southern Bali: Dominated by tourism, hospitality, and F&B. Includes Seminyak, Canggu, Ubud, and Nusa Dua. These areas are popular for restaurants, villas, and related services.
- Central Bali: Ubud remains a hub for wellness, arts, and increasingly, digital nomad services and co-working spaces.
- Emerging Areas: North Bali and West Bali are seeing increased interest for larger-scale developments and sustainable tourism projects, though less established for immediate F&B ventures compared to the south.
4. Main Players in Bali’s Corporate Services Sector
The corporate services sector in Bali is competitive, with numerous firms assisting foreign investors. Key players include: Open Company In Bali, InCorp Indonesia, and Emerhub. These firms provide services ranging from company registration, visa and work permits, to tax and accounting support.
5. Regulatory Landscape and Recent Changes
Indonesia has implemented several regulatory changes to streamline foreign investment:
- Positive Investment List (Presidential Regulation No. 10/2021): This regulation replaced the Negative Investment List, significantly expanding the sectors open to foreign ownership, including many F&B activities.
- Online Single Submission (OSS) System: This integrated system simplifies the business licensing process, allowing companies to obtain various permits through a single platform.
- Regional Regulations: Bali is introducing stricter enforcement and new regulations to curb illegal business practices and ensure compliance, particularly concerning environmental impact and local employment. This includes a focus on preventing ‘paper companies’ and ensuring genuine business operations.
6. Buyer and Investor Profiles
Investors in Bali typically fall into several categories:
- Lifestyle Entrepreneurs: Individuals seeking to establish businesses that align with their personal interests, often in hospitality, F&B, or wellness.
- Strategic Investors: Companies looking to expand their regional presence, leveraging Bali’s brand recognition and tourist numbers.
- Digital Nomads and Remote Workers: Setting up service-based companies, often in IT, marketing, or creative industries.
- Real Estate Developers: Investing in villas, hotels, and commercial properties.
7. 2027 Outlook for Foreign Investment in Bali
The outlook for foreign investment in Bali by 2027 remains positive, with continued growth expected in key sectors. The government’s push for ease of doing business, coupled with Bali’s strong appeal as a tourist destination, will likely sustain investor interest. However, increased regulatory scrutiny will demand greater due diligence and adherence to local laws. This means that while opportunities for 100% foreign ownership in restaurants are present, establishing a legitimate, compliant PT PMA with clear operational plans will be essential.
Understanding the nuances of Indonesian corporate law and Bali’s specific regulations is crucial for a successful setup. For detailed guidance on how to start a business in Bali for foreigners, including restaurant ownership, it is advisable to consult with experienced corporate service providers.
Regulatory Shifts Impacting PT PMA in Bali (2026-2027)
Bali’s regulatory environment for foreign-owned companies is undergoing significant changes. While the province remains a key destination for foreign investment, particularly for PT PMAs, authorities are implementing measures to address concerns regarding “paper companies” and to ensure genuine economic contributions. These moves aim to reshape how and where new entities can be established, favouring operational businesses over purely administrative setups.
The tightening of rules is a direct response to Bali accounting for a very large share of Indonesia’s foreign-investment companies. This concentration has prompted regulatory scrutiny to ensure compliance and prevent misuse of PT PMA structures. Foreign investors should anticipate increased due diligence and stricter enforcement of operational requirements for their entities in Bali from 2026 onwards.
Key Hubs and Investor Profiles for Bali PT PMA
Bali’s foreign investment landscape is characterised by specific geographical hubs and distinct investor profiles. The majority of PT PMA activity is concentrated in established areas, reflecting existing infrastructure and market demand. Understanding these hubs and typical investor types is crucial for strategic business planning.
Major foreign investment activity in Bali typically occurs in locations with strong tourism, hospitality, and supporting service industries. These areas offer established ecosystems for foreign-owned businesses in sectors such as F&B, wellness, digital services, and experiential travel. The investor base for Bali PT PMAs is diverse, but generally falls into several categories:
- Entrepreneurs establishing lifestyle businesses (e.g., restaurants, cafes, villas).
- Digital nomads and remote workers formalising their presence through service-oriented companies.
- Investors in the hospitality and tourism sectors, capitalising on Bali’s market.
- Companies expanding into health and wellness, a sector experiencing 10-15% CAGR nationally.
To understand the specific requirements for your restaurant venture and navigate the regulatory landscape, request a free company-setup assessment on WhatsApp.