What happened
Bali Governor Wayan Koster said foreign-owned companies have been blocked from 18 business categories in OSS, Indonesia's online single submission licensing system. The step was approved by the Investment Minister and has applied since the third week of May 2026.
The categories are rated low or medium-low risk. Officials say foreigners used them as a loophole to obtain a business identification number (NIB) quickly.
Which categories are closed
The list covers star-rated and budget hotels, other accommodation, and owned or leased real estate. It also includes car and motorbike rentals, bars and cafes, clothing and food retail, fitness centres and management consulting.
The Jakarta Post cites official figures showing that more than 400 car rental and tour firms in Badung were foreign-owned. Many had no physical office on the island.
The authorities' case
Koster argues these firms create unfair competition for local micro, small and medium enterprises. He said they operated without the substantial capital normally required of foreign investors.
The decision followed a review of licences issued to foreign-investment companies. Officials say some of these firms operated through virtual offices.
What OSS and KBLI are
OSS has operated since 2018 and lets businesses obtain licences online through a single platform. Each activity in it is tied to a KBLI code, the Indonesian standard industrial classification.
Bali began this review back in June 2025. Governor Koster then set up an inter-agency task force against illegal foreign-run businesses, prompted by complaints from local small firms.