What Bali’s 18-category OSS restriction means for foreign investors

Foreign investors cannot use Indonesia’s Online Single Submission system to apply for new licences in 18 specified low-risk and medium-low-risk business classifications in Bali. The restriction has applied across Bali since the third week of May 2026, while businesses that already hold licences must continue filing investment activity reports.

Which business activities are covered?

According to the Bali provincial government, the restriction covers 18 Indonesian Standard Industrial Classification, or KBLI, categories. The published examples include hotels with building areas below 6,000 square metres, budget hotels, owned or leased real estate, management consultancy, vehicle rental and tailoring.

The list also includes stadium facilities, fitness centres and sports-event promoters. The policy concerns new licensing applications by foreign-owned investment companies, or PMA, in the designated categories.

When did the restriction take effect?

The Bali provincial government says the OSS access closure has applied throughout Bali since the third week of May 2026. The measure followed approval from the central government, according to the provincial government’s account published in 2026.

This is a restriction on access to new licensing applications for the specified categories, not a statement that every existing foreign-owned business in those fields must close.

What must already licensed companies do?

Companies that already have licences remain required to submit LKPM, the Indonesian investment activity report, under the applicable rules, according to the Bali provincial government. The published policy does not remove that reporting obligation.

Why does this matter for Bali’s economy?

The provincial government presents the policy as a way to protect local micro, small and medium-sized enterprises from what it describes as unhealthy competition. It is therefore relevant to investors assessing market entry, licensing risk and the division between foreign-owned investment and locally oriented business activity.

Bank Indonesia reported that Bali’s economy grew 5.78% year on year in the second quarter of 2026 and that consumer-price inflation was 3.27% year on year in the same quarter, according to its August 2026 Bali economic report. Those figures describe the wider operating environment; they do not change the OSS restriction on the 18 classifications.

Sources

• Bali Provincial Government
• Bank Indonesia