Bali Governor Tightens Foreign Investment Rules and Cracks Down on Nominee Ownership
Bali Governor Wayan Koster announced that several business classifications requiring a minimum capital of Rp10 billion are now closed to new foreign direct investment (PMA) in Bali. He also signaled a crackdown on "nominee" arrangements, where foreigners use local names to control land or businesses. Existing foreign-run operations may be grandfathered under old permits, but new licenses in these sectors will no longer be issued.
On Monday, October 26, 2026, Bali Governor Wayan Koster announced at the Immigration Office in Denpasar that several business classifications requiring a minimum capital of Rp10 billion (roughly USD 630,000) are now closed to new foreign direct investment (PMA) in the province. The provincial government has already sent a letter to Indonesia's Minister of Investment requesting the closure of these categories.
Koster noted that some foreign-run businesses still operating may be doing so under permits issued before the new restriction took effect. This means the visible presence of foreign-owned operations in certain sectors does not necessarily indicate that new licenses in those categories are still available.
The governor also signaled a stronger push against "nominee" arrangementsâwhere foreigners use the names of Indonesian citizens to hold effective control over land or businesses. According to Koster, this practice remains common in Bali. The provincial government has begun implementing a regional regulation (Perda) governing land-use conversion and ownership control, though he said enforcement would proceed gradually in coordination with stakeholders rather than through abrupt crackdowns.
Koster claimed Bali is the only Indonesian province to take such a firm stance on restricting foreign investment in specific business sectors, framing the move as protection for local micro, small, and medium enterprises (UMKM). He also called on residents and media to report suspected violations, acknowledging the government's limited capacity for direct field monitoring.
Things to Consider
Foreigners planning to invest in Bali (via PMA) or acquire property/land should consult a licensed local lawyer or notary (notaris) before proceeding, to confirm whether their intended business category is now closed to foreign investment. Do not assume that seeing an existing foreign-run business means new permits are still obtainable in that sector. If you are currently using a nominee arrangement to hold land or business ownership through a local name, seek legal advice promptly given the announced enforcement push against such practices.