HIPMI Launches Program to Strengthen Local Developers in Bali Amid Crackdown on Foreign Villa Investment Loopholes
HIPMI's Bali chapter held the "HIPMI Real Estate Development Program 2026" in Denpasar on November 6-7, aiming to build a solid community of local real estate developers. The event follows Indonesia's Investment Ministry/BKPM blocking business classification code KBLI 68111 on the OSS system, a move to curb foreign capital from misusing real estate permits to build and commercialize villas.
The Bali chapter of the Indonesian Young Entrepreneurs Association (HIPMI), together with REI Bali, AREBI Bali, and IAI Bali, held the two-day "HIPMI Real Estate Development Program 2026" in Denpasar on November 6-7, 2026.
Committee chair Surya Dharma said the event responds to Bali's rapidly growing property sector over the past two decades. He noted that while foreign developers have built strong communities and networks, local players have lacked a concrete forum for collaboration — a gap this program aims to fill.
HIPMI Bali chapter chairman and Bali provincial legislator Agung Bagus Pratiksa Linggih (known as Ajus Linggih) said local developers now have a significant opportunity following the blocking of business classification code KBLI 68111 by the Investment Ministry/BKPM on the OSS online licensing system. The move targets a scheme in which foreign investment has reportedly misused real estate or housing development permits to build and commercially operate villas.
Linggih said the program aims to cultivate resilient new local developers so the industry is not dominated by a handful of large companies. He pointed to Bali's globally recognized architectural heritage and experienced hospitality workforce as advantages for local businesses to grow quickly. However, he acknowledged persistent challenges, including limited access to capital and high land prices in Bali, and called for greater collaboration among local entrepreneurs going forward.
Things to Consider
Foreign nationals considering property purchases or villa investments in Bali should consult a local lawyer or licensed consultant before proceeding, as the blocking of KBLI 68111 may affect schemes previously used to commercially operate villas through real estate development permits. Those with existing investment plans should re-verify the legality of their current arrangement with their developer or agent and review contracts as needed to ensure compliance with updated licensing rules.
Source: RRI