BALI TIGHTENS RULES FOR FOREIGN BUSINESS, INVESTMENT, PROPERTY, AND MSMEs – 2025

Bali is reshaping its economic rhythm in 2025 — tightening rules around foreign investment, property, and small enterprise. The aim: to protect local livelihoods, close legal loopholes, and keep the Island of the Gods in local hands.

Stricter Investment and Visa Requirements

Investor visas now demand Rp 10 billion minimum capital, permanent stay (ITAP).

Authorities are cracking down on misuse of visas for unauthorized business.

Tighter Property Ownership

Bali will ban nominee arrangements where Indonesian citizens front for foreign property buyers.

Illegal villas, contract-marriages, and shell company schemes will face enforcement.

Stronger oversight in tourism zones.

MSME Sector Reforms

Local business associations are calling for minimum capital thresholds to protect local entrepreneurs

Bali Governor, Wayan Koster proposed increasing the minimum foreign investment for MSMEs to Rp. 10billion, aiming to limit foreign presence in low-capital sectors.

Government Solutions 2025 - 2029

The national government supports Bali’s policy through a broader MSME Strengthening Roadmap focused on balance and sustainability.

  •  Empowering Local MSMEs

Simplified business registration, easier access to credit, and digitalization programs to boost competitiveness.

  • Stronger Enforcement

Coordinated monitoring of visa abuse, illegal business operations, and nominee property ownership

  • Investment Rebalancing & Transparency

The Ministry of Investment (BKPM) will introduce new investment categorization standards to distinguish between strategic foreign investment and restricted low-capital MSME sectors

  • Local-First Economic Development

Bali will receive national funding to boost local supply chains and MSME industries.

Programs focus on MSME development funds, skills training for youth and artisans, and promotion of local crafts and sustainable tourism through digital and export channels 

Final Thoughts

The new framework aims to protect local businesses while ensuring responsible, transparent foreign investment. If implemented effectively, Bali could become a national model for sustainable entrepreneurship and fair economic growth.

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