Set Up a Company in Bali: Sectors and Ownership Rules

To set up a company in Bali as a foreign investor, you set up a PT PMA, a limited liability company with foreign shareholders, registered for business through OSS. Under Indonesia’s investment list, foreign investors may own hotels of two stars and above, restaurants and catering, and software and digital services outright. Small accommodation, travel agencies and salons are kept for co-operatives and small businesses. MAM confirms the business line for a new company before anything is filed.

Accommodation and food service was the largest part of Bali’s economy in the fourth quarter of 2025, and foreign investors put IDR 5.9 trillion into the island in the second quarter of 2026, more than half of the recorded total. The sections below cover Bali’s economy and investment figures, its main sectors, how the investment list treats common business lines, and the steps to get started.

Why Bali

Bali’s economy grew 5.82% in 2025, up from 5.48% in 2024 and ahead of Indonesia’s 5.11% (Bank Indonesia, Bali economic report, February 2026). The island received almost 7 million foreign tourist visits in 2025, and Australia is its largest market, with 24.99% of foreign visits in the fourth quarter (BPS Bali). Ngurah Rai airport handled about 24 million passengers in 2025 and has capacity for 32 million (Bank Indonesia).

In the second quarter of 2026 foreign investors put IDR 5.9 trillion into Bali, more than half of the province’s IDR 10.5 trillion total. Most of it went into hotels and restaurants, property and services, and most of it to Badung, followed by Denpasar and Gianyar. Investors came from Australia, Singapore, France and many other countries. These figures cover medium and large businesses only (BKPM).

Bali’s main sectors

Accommodation and food service is the largest part of Bali’s economy by a wide margin, at 22.10% in the fourth quarter of 2025 (BPS Bali), and hotels and restaurants are among the largest destinations for foreign investment (BKPM). Farming, forestry and fisheries come second, at 13.02%.

Transport and warehousing, at 9.98%, and wholesale and retail trade, at 9.03%, are the next largest service sectors, and BPS Bali describes both as supporting the island’s tourism. Construction makes up 9.13% (BPS Bali), and property has been one of the largest destinations for foreign investment in recent quarters (BKPM).

Which business lines are open to foreign investors

Which business lines are open to foreign investors is set by Indonesia’s investment list, Perpres 10/2021 as amended by Perpres 49/2021. The table shows how the list treats some Bali business lines. Some lines are kept for co-operatives and small businesses.

“Open” means the investment list sets no ceiling (Perpres 10/2021, as amended, Lampiran II and III). Each business still needs the licence for its own line, and MAM confirms the ownership position and the business code before anything is filed.

How to set up a company in Bali, step by step

1. 1
   Before anything is filed

   Confirm the business code

   The KBLI code, Indonesia's business classification, for what you will actually do decides whether foreign ownership is open and which licence follows.

2. 2
   Setting up

   Set up the PT PMA

   The PT PMA gets its business registration number (NIB) through OSS (Online Single Submission), the government's licensing system.

3. 3
   Before you open

   Get the licence for the line

   OSS licenses low-risk activities as part of the registration. Medium-risk activities meet further requirements first.

4. 4
   Once the company exists

   Bring the team in

   Foreign directors and staff, and shareholders whose holding qualifies, stay in Indonesia on permits arranged through the company.

A PT PMA needs a planned investment of more than IDR 10 billion for each business line and location, and at least IDR 2.5 billion of paid-up capital (Permeninves/BKPM 5/2025, Article 26). For accommodation, land and buildings count towards the investment, as our guide to PT PMA capital explains. MAM handles the PT PMA setup from the business code onwards. How the code and the risk level decide the licence is set out in OSS and KBLI licensing.

It is worth checking a site’s zoning before you commit to it. OSS checks a business location against the spatial plan (PP 28/2025, Articles 14 to 18, in force since 5 June 2025); our note on location and environmental approvals explains what a site needs, and Bali protects the farmland its plans designate (Perda Bali 4/2026, in force 24 February 2026).

For your team, an investor KITAS, a limited stay permit (Kartu Izin Tinggal Terbatas), covers a shareholder whose holding qualifies, and a work permit KITAS is the permit for a foreign employee the company hires. The other permits are set out in Indonesia’s visa categories.

What this means for you

The company you set up is a PT PMA, and its business registration goes through OSS. Two checks come first: that your business line is open to a new foreign-owned company, and that the site is zoned for it.

If you are weighing whether to set up a company in Bali or elsewhere, the choice between a PT PMA, a local PT and a representative office is compared in business opportunities in Yogyakarta. For the national picture, see where foreign capital is flowing across the country.