How the loophole works
KBLI is Indonesia's business classification system and defines what a company may legally do. Code 6811 covers dealing in owned or leased real estate.
I Ketut Sukra Negara, head of Bali's provincial investment and licensing office, said foreign investors often set up a PMA (a foreign-owned company) under this code. Once construction is finished, the building is turned into a villa and rented by the night, which no longer matches the permit.
What legislators said
Agung Bagus Pratiksa Linggih, who chairs Commission II of the Bali DPRD, said the Investment Ministry has blocked KBLI 6811 in OSS for low-risk PMA companies. OSS is the national online business licensing system, so the code can no longer be obtained through the simplified route.
He added that 18 business codes are blocked in all, and that working with online travel agents (OTAs) now comes with additional requirements.
Why the budget matters
The main concern is tax. When a villa runs as an accommodation business under the wrong code, the local room tax often does not reach the regency treasury.
Provincial officials stressed that enforcement sits with the central government and the regencies. The provincial parliament itself does not issue or revoke licenses, it only raises the issue.
How to check your own structure
A company's NIB, its business identification number, lists every KBLI code it is registered for. It can be downloaded from OSS with the company login or requested from a notary.
If a villa takes nightly guests, the NIB should include an accommodation code and the property should hold valid permits for that business. Code 6811 alone does not cover it.
It is also worth checking who pays the local room tax and which company signs the contracts with booking platforms. Mismatches here tend to surface first during inspections.