Bali Closes the Door on Low-Risk PT PMA Licenses: What Foreign Investors Need to Know

Bali Closes Low-Risk PT PMA Licenses: What Foreign Investors Need to Know

Bali closes low-risk PT PMA business licensing — and the change is already in effect. As of May 13, 2026, the Ministry of Investment has formally blocked all new Low-Risk and Lower-Medium-Risk KBLI activations for PT PMA (foreign-owned) companies across Bali Province. In other words, the automated path through Indonesia's OSS system that previously allowed foreign investors to register standard business activities is now closed for these categories — entirely and island-wide.

Effective Date: May 13, 2026   ·   Scope: Bali Province only   ·   Applies to: PT PMA (foreign-owned companies)

What Actually Changed?

Following an official request from the Governor of Bali, Indonesia's Ministry of Investment approved a system-wide block within the OSS platform. As a result, PT PMA companies can no longer activate Low-Risk or Lower-Medium-Risk KBLI business codes anywhere in Bali Province. This means the automated path through OSS — previously fast and accessible for most standard business setups — no longer works for these categories. The block took effect on May 13, 2026.

In short, Bali closes low-risk PT PMA registration through a formal government directive — not a temporary suspension, but a permanent structural change backed by the Ministry of Investment via official letter No. B.27.000/642/PM/DPMPTSP from the Governor of Bali.

The Closed List vs. What Remains Available

Now that Bali closes low-risk PT PMA registration, foreign investors who planned to enter these common sectors face a blocked path in the Bali OSS system. However, not everything is off the table. The government directs foreign investors exclusively toward Medium-High and High-Risk classifications, which remain open — though with significantly stricter requirements.

What Does Choosing a High-Risk Classification Actually Mean?

The Medium-High and High-Risk path works very differently from the old automated OSS route. Before you commit, it is important to understand exactly what you are signing up for. In addition to longer processing times, you will face stricter documentation requirements and direct government oversight at every stage.

Am I Affected by the Low-Risk PT PMA Block?

KBLI 2025: A Potential Silver Lining?

Although Bali closes low-risk PT PMA registration under the current framework, the upcoming transition to the KBLI 2025 classification system could introduce new opportunities. Nevertheless, investors should approach this with caution — change is not the same as access.

What Should You Do Now?

Given that Bali closes low-risk PT PMA registration, here is a practical guide based on where you currently stand in the process:

Already operating in Bali with an active low-risk KBLI? You are protected at your current registered location. No urgent action is necessary, but avoid expanding to new premises without seeking professional advice first.

Have a pending setup that may be affected? Seek expert advice on corporate restructuring before you proceed. Activating a blocked KBLI will result in a rejected application and wasted time.

Planning a new Bali business from scratch? Reassess your business model against the open high-risk categories. If it fits, prepare for a longer, more document-intensive process with no guaranteed timelines.

Considering other Indonesian islands? The rest of Indonesia remains open under normal OSS rules. Therefore, if your business model falls under a now-blocked KBLI, this may be the most practical path forward.