DENPASAR, DEWATA.NEWS – Bali authorities are considering a proposal to raise the minimum foreign investment requirement for Foreign Direct Investment (PMA) businesses from IDR 10 billion to IDR 100 billion as part of efforts to attract more serious and higher-quality investors to the island.
Head of Bali’s Investment and One-Stop Integrated Services Agency (PMPTSP), I Ketut Sukra Negara, said the idea has been repeatedly mentioned by Bali Governor Wayan Koster as a strategy to improve the quality of incoming investment.
“The Governor has stated several times that ideally the minimum should be IDR 100 billion. For foreign investors operating in Bali, IDR 10 billion is actually very small,” Sukra Negara said on Thursday (May 7, 2026).
He explained that the current minimum foreign investment requirement of IDR 10 billion still follows Indonesia’s Investment Law No. 25 of 2007. Any adjustment to the threshold would therefore require revisions at the national level.
“Why is it IDR 10 billion? Because that is regulated under the Investment Law. So if changes are to be made, it requires a legal revision process. For now, this remains a proposal,” he said.
According to Sukra Negara, increasing the investment threshold is expected to help filter investors who are genuinely committed to building legitimate businesses in Bali rather than obtaining business permits for unrelated or illegal activities.
Authorities stated that misuse of virtual office registrations remains a recurring issue, with some foreign investors allegedly operating businesses outside their approved licenses.
“The hope is that with an IDR 100 billion threshold, Bali will attract investors who are truly serious about investing on the island,” he added.
He cited examples of foreign investors who obtained permits for one type of business but later operated unauthorized ventures such as illegal motorcycle rental services.
At the same time, Bali Provincial Government officials emphasized that the region has already introduced new local regulations aimed at improving investment governance and business compliance.
One of the regulations is Bali Provincial Regulation No. 4 of 2026, which addresses land-use conversion restrictions and prohibits nominee practices involving foreign investors borrowing the names of local residents.
According to Sukra Negara, the regulation is intended to provide greater legal certainty for businesses operating in Bali.
“The presence of this regulation is very strategic because it creates clearer licensing certainty. Businesses investing in Bali must follow those rules, so there is more certainty regarding investment procedures,” he explained.
Officials argued that stricter regulations would not weaken Bali’s investment climate but instead encourage healthier and more orderly investment practices, particularly in the Sarbagita region covering Denpasar, Badung, Gianyar, and Tabanan.
Authorities also highlighted concerns over nominee arrangements, where foreign investors allegedly use local names to lease land and develop businesses such as villas and real estate projects.
“Nominee practices involve borrowing local names to lease land and build villas or real estate businesses. These practices are now beginning to be prohibited,” Sukra Negara said.
Despite the proposed tighter regulations, Bali authorities stressed that foreign investors should not hesitate to invest in the province as long as all business activities comply with Indonesian laws and licensing rules.