DENPASAR, DEWATA.NEWS – The Bali Provincial Government is reviewing foreign investment access on the island by proposing the closure of seven Indonesian Standard Industrial Classification (KBLI) categories that are considered vulnerable to misuse.
So far, one sector has been approved for restriction: foreign investment (PMA) management consultancy services.
Head of Bali’s Investment and One-Stop Integrated Service Office (DPMPTSP), I Ketut Sukra Negara, said the PMA consultancy classification has become a priority due to repeated cases of permit misuse.
“This KBLI category is frequently misused by PMA companies,” Sukra stated on Wednesday (Feb 18).
According to him, the business categories proposed for closure largely fall under low-risk and lower-medium risk classifications. While these sectors contribute to regional revenue, the government considers widespread misuse of business permits a more pressing concern.
The provincial administration has not yet calculated the potential revenue impact of the proposed restrictions.
“We have not yet calculated its contribution,” he added.
Businesses already operating under the affected classifications will be allowed to continue operations but will face stricter supervision and guidance.
“Those already operating may continue, but we will provide stronger supervision because many are suspected of misusing their permits. We have also summoned several PMA business operators to provide guidance,” Sukra said.
The move comes amid strong overall investment performance in Bali. As of the end of the fourth quarter of 2025, total realized investment reached IDR 42.81 trillion, approximately 94 percent of the IDR 45 trillion target.
Foreign direct investment (PMA) contributed IDR 25.60 trillion, reflecting annual growth of 5.7 percent. Meanwhile, domestic investment (PMDN) grew significantly by 39.8 percent to IDR 17.21 trillion.
Overall, Bali’s 2025 investment realization increased by 17.2 percent compared to IDR 36.50 trillion in 2024, with Badung Regency recorded as the largest contributor.
For foreign investors and business operators in Bali, the proposed KBLI restrictions signal tighter regulatory oversight in selected sectors, particularly those considered prone to permit misuse.