PMA in Bali Restricted to Medium-High and High Risk Business Activities

Foreign investors planning to establish a PT PMA in Bali should be aware of an important implementation currently appearing in the OSS RBA system.

Based on the latest notification displayed directly in the OSS (Online Single Submission Risk-Based Approach) platform, foreign-owned companies (PMA) in Bali are no longer allowed to continue applications for business activities categorized as:

• Low Risk
• Medium-Low Risk

This means that, in practice, PMA companies in Bali are currently directed to operate under business classifications (KBLI) categorized as:

• Medium-High Risk
• High Risk

OSS System Notification for PMA in Bali

When selecting certain KBLI classifications in OSS RBA, the system displays the following notification:

“Untuk badan usaha berstatus PMA di Provinsi Bali, kegiatan usaha dengan tingkat risiko Rendah dan Menengah Rendah tidak dapat dilanjutkan sesuai kebijakan yang berlaku.”

English translation:

“For PMA business entities in Bali Province, business activities with Low Risk and Medium-Low Risk classifications cannot proceed according to the applicable policy.”

This notification appears directly in the OSS system during the licensing process, indicating that the restriction is actively implemented within the platform.

What Does This Mean for Foreign Investors?

This implementation significantly affects foreign investors who plan to establish businesses in Bali using PT PMA structures.

Many business sectors that were previously considered simpler or lower risk may no longer be available for PMA registration in Bali if the KBLI falls under:

• Low Risk
• Medium-Low Risk

As a result, investors must carefully select business classifications that comply with the current OSS system policy.

Understanding Risk Classification in OSS RBA

Under Indonesia’s OSS Risk-Based Approach (RBA), business activities are categorized into four risk levels:

Low Risk

Businesses only require a Business Identification Number (NIB).

Medium-Low Risk

Businesses require NIB and self-declared standard certification.

Medium-High Risk

Businesses require NIB and verified standard certification.

High Risk

Businesses require full licensing and additional government approvals.

The risk level depends on several factors, including:

• Type of business activity
• Potential environmental impact
• Safety standards
• Operational complexity
• Industry sector regulations

Why Is This Happening in Bali?

Although there has not yet been a widely published national regulation specifically stating that “all PMA in Bali must only use medium-high or high-risk KBLI,” the implementation in OSS indicates a clear policy direction.

The likely objectives include:

• Encouraging larger-scale investment
• Improving investment quality
• Increasing regulatory supervision
• Limiting certain small-scale sectors for foreign ownership
• Supporting local MSMEs and domestic businesses

Bali has become one of Indonesia’s most monitored regions for foreign investment activities, especially in tourism and accommodation sectors.

Accommodation and Villa Businesses Are Highly Affected

One of the sectors most impacted by this implementation is accommodation and villa rental businesses.

Certain accommodation-related KBLI classifications that fall under lower risk categories may now trigger OSS rejection notices for PMA entities in Bali.

Because of this, investors should conduct proper KBLI analysis before:

• Establishing a PT PMA
• Purchasing property
• Signing lease agreements
• Applying for business licenses

Importance of Proper KBLI Selection

Choosing the wrong KBLI can lead to:

• OSS application rejection
• Delays in licensing
• Additional compliance costs
• Incompatibility with zoning or tourism regulations

Foreign investors are strongly advised to review:

• Risk classification
• Business scale
• Spatial planning (zoning)
• Operational requirements
• Sector-specific regulations

before proceeding with incorporation.

Conclusion

The OSS RBA system currently implements a restriction for PMA companies in Bali, preventing applications for Low Risk and Medium-Low Risk business activities.

As a practical result, foreign-owned companies in Bali are now generally directed toward Medium-High Risk and High Risk KBLI classifications.

Because OSS policies and implementation may continue evolving, foreign investors should always verify the latest requirements before establishing a business in Bali.

Need Assistance with PT PMA Setup in Bali?

Bali Visa Advisor provides assistance for:

• PT PMA establishment
• KBLI consultation
• OSS RBA licensing
• Villa and accommodation licensing
• Investor KITAS
• Business compliance in Bali

Consult with a professional team before selecting your business classification in Indonesia.