18 Business fields restricted in Bali but still available in Lombok

In July 2026, the Governor of Bali officially announced new restrictions affecting 18 business fields (KBLI codes) for new PT PMA registrations. The policy purposes to strengthen the role of local businesses, improve investment quality, and encourage foreign investors to focus on sectors that generate greater economic value for Bali.

It is important to understand that this policy specifically targets new PT PMA registrations. Existing licensed companies generally continue operating under their previously approved business licenses, subject to applicable regulations. For investors planning to enter Indonesia’s tourism market, this announcement significantly changes where and how they should establish their businesses.

Rather than discouraging foreign investment entirely, the Bali provincial government is shifting its strategy toward higher-quality and more sustainable investment. Several factors influenced this decision:

• Protecting local MSMEs (UMKM).
• Reducing oversupply in highly competitive tourism sectors.
• Preventing uncontrolled commercial development.
• Supporting sustainable tourism.
• Encouraging investment into larger-scale and higher-value projects.
• Improving regulatory compliance among foreign investors.

The following overview summarizes the business activities affected by the July 2026 Bali policy for new PT PMAs. The activities are grouped by business category to provide a clearer comparison between the current position in Bali and the opportunities available in Lombok (NTB).

Hospitality, food, and beverage

• Cafe or coffee shop — KBLI 56303.
• Hotels under 6,000 m² — KBLI 55110.
• Melati hotels under 6,000 m² — KBLI 55120.
• Other accommodation services — KBLI 55900.
• Traditional medicine shops — KBLI 56305.

Property and business services

• Owned or rented real estate — KBLI 68111.
• Management consulting — KBLI 70209.
• Industrial management consulting — KBLI 70204.

Tourism and transportation

• Car rental — KBLI 77100.
• Motorbike rental — KBLI 77311.

Wellness and personal services

• Fitness centers — KBLI 93116.
• Stadium facilities — KBLI 93111.
• Sports event promoters — KBLI 93191.

Retail and fashion

• Clothing retail — KBLI 47711.
• Textile retail — KBLI 47511.
• Food retail — KBLI 47249.
• Mobile food retail — KBLI 47991.
• Tailoring or made-to-order clothing — KBLI 14120.

Bali: New PT PMA registration is restricted to 18 eligible business sectors.
Lombok: New PT PMA registration is permitted across 18 eligible sectors, subject to applicable requirements.

Important Note: Investors should always verify the latest implementation procedures through OSS Indonesia, BKPM(Ministry of Investment), and the relevant provincial authorities before submitting an application, as implementation guidance may evolve.

Lombok has experienced significant growth over the past decade, driven by national infrastructure projects, expanding tourism, and increasing international recognition. Several factors make Lombok attractive:

1. Lower entry costs

Commercial land prices remain considerably lower than many prime areas in Bali, allowing investors to secure larger sites with lower capital requirements. This is particularly attractive for land investment in Lombok, where appreciation potential remains strong as tourism infrastructure continues to expand.

2. Government infrastructure investment

Major projects continue to attract domestic and foreign investment. These developments include:

• Lombok International Airport.
• Mandalika Special Economic Zone (SEZ).
• MotoGP Circuit.
• New roads and tourism infrastructure.
• International hotel developments.
• International wellness and sport center.

3. Growing tourism market

International visitor numbers continue recovering while domestic tourism remains strong. Unlike Bali’s mature tourism market, Lombok still offers opportunities to enter emerging locations before prices increase significantly.

4. Easier business expansion

Since Lombok follows Indonesia’s national OSS-RBA framework without the additional provincial restrictions currently applied in Bali, investors generally have more flexibility when establishing tourism-related businesses.

Is Bali closed to foreign investors?
No. Bali remains open to foreign investment. However, certain business activities are subject to provincial restrictions for new PT PMA registrations. Based on several cases we have discovered, without a PT PMA, it would be very risky for foreigners to operate a business in Indonesia.

Are existing PT PMAs affected?
Generally, existing licensed businesses are not the primary target of the July 2026 policy. Investors should nevertheless monitor any future implementing regulations that could affect licensing or operational requirements.

Can foreigners still buy land in Lombok?
Foreigners cannot directly own freehold land in Indonesia. However, investment can be structured through legally recognized mechanisms, such as PT PMA land rights where permitted by Indonesian law. Professional legal advice is essential before any acquisition.

Why are many investors looking at Lombok?
Lombok offers lower land prices, growing tourism, expanding infrastructure, and fewer provincial restrictions on new PT PMAs in many tourism-related sectors.

Is Lombok part of the OSS licensing system?
Yes. Businesses in Lombok use Indonesia’s national OSS Risk-Based Approach (OSS-RBA) licensing system.

Should I invest in Bali or Lombok?
The answer depends on your business model. If you are an investor targeting mature tourism markets, you may still prefer Bali, keeping in mind that hospitality businesses such as resorts, hotels, and villas must be built on land with a minimum area of 6,000 sqm (based on updated regulations). As a result, Lombok is now being considered more seriously, particularly for investment in the tourism sector. This is because it is only a 30-minute flight from Bali, offers tourist attractions very similar to Bali, has no restrictions on business activities for foreigners, and offers more reasonable prices.

Bali remains one of Asia’s premier tourism destinations, but its investment landscape is evolving. The July 2026 announcement restricting 18 business activities for new PT PMAs signals a policy shift toward more selective and sustainable foreign investment.

For entrepreneurs planning restaurants, hospitality services, tourism businesses, or other affected sectors, Lombok presents an increasingly compelling alternative. With lower land costs, expanding infrastructure, and continued access under Indonesia’s national investment framework, the island offers room for long-term business growth while avoiding the additional provincial restrictions now applied in Bali.

At Maju Properties, we help international investors navigate every stage of their Lombok property journey. Our services include:

• Land sourcing and acquisition.
• Investment consultation.
• Market analysis.
• Due diligence support.
• Development planning.
• Integrated with the trusted legal, licensing, and property management professionals.

Whether you are buying your first investment property or expanding an existing portfolio, our team is ready to help you make informed decisions with confidence. Contact Maju Properties today to explore secure and sustainable investment opportunities in Lombok.

Disclaimer

This article is for general informational purposes only and is based on Maju Properties market knowledge and experience. Regulations and investment requirements in Indonesia may change and vary depending on your specific circumstances. Please contact Maju Properties for the latest information and professional guidance. Follow us on Instagram, and LinkedIn for the latest property and investment updates.