Bali tightens regulations on foreign-owned small businesses to protect local enterprises

Bali is implementing stricter controls on foreign investment in small tourism, food, and lifestyle businesses to safeguard local enterprises struggling against a rise in foreign-owned operators. Bali Governor I Wayan Koster announced that 18 business categories have been removed from the government's Online Single Submission OSS licensing system, preventing these sectors from obtaining new licenses. This decision addresses a loophole where some businesses exploited the OSS system by registering under low-risk categories, bypassing substantial capital requirements typically applied to foreign investors. This practice, according to Koster, created unfair competition and threatened micro, small, and medium enterprises. The removed categories include hotels under 6,000 square meters, hostels, leased property businesses, car and motorcycle rentals, bus and truck rentals, clothing and textile retailers, restaurants, cafes, traditional medicine shops, stadiums, fitness centers, and management service companies. These restrictions have been in effect since May. Koster emphasized that Bali welcomes high-quality and responsible investment that aligns with the island's development vision, respects local culture, and supports a people-based economy.