Bali Lawmakers Say OSS Blocked Real-Estate Route to Villas

Denpasar — Bali’s Regional House of Representatives said on Oct. 4, 2026, that KBLI 6811, the real-estate classification, had been blocked for foreign-owned companies in Indonesia’s Online Single Submission licensing system.

The statement came from Agung Bagus Pratiksa Linggih, known as Ajus Linggih, chairman of Commission II of the Bali Regional House of Representatives. He said the Ministry of Investment had blocked the classification for foreign direct investment and that 18 business classifications had been closed to new foreign-investment applications.

The move follows allegations that foreign-owned companies secured permits under real estate classifications, completed buildings and then operated them as villas rented on a daily basis. The reports did not identify the companies involved or establish that the alleged practice occurred in a particular case.

Why the blocked classification matters to foreign investors

In practice, the restriction means a foreign-owned company cannot submit a new OSS application in Bali under the affected classification while the access remains closed. The measure is not described as a blanket ban on foreign investment across the province: it applies to specified business classifications, including real estate owned or leased, and to new applications.

Reports on the wider policy said Bali’s provincial government closed access throughout the province beginning in the third week of May 2026, after receiving approval from the Minister of Investment and Downstreaming, who also serves as head of the Investment Coordinating Board. The restricted categories include businesses in accommodation, vehicle rental, retail, management consulting and other sectors considered close to the operating space of local small and medium-sized enterprises.

Companies with existing licences remain obliged to submit Investment Activity Reports, known as LKPM, until the relevant classification is deactivated or removed from the licensing system.

Sources

• detikBali — established regional news organisation
• NusaBali — established regional news organisation
• investinasia.com
• periskop.id