The province's complaint
Governor Wayan Koster criticised OSS, Indonesia's risk-based online licensing system. He said general national norms allow permits for hotels, villas, restaurants and beach clubs that ignore local regulations.
Regional plans such as the RTRW and RDTR (spatial and detailed zoning plans) should be the main reference, he argued. He also said more than 400 foreigners own vehicle rental businesses in Badung alone.
The ministry's answer
Deputy Investment Minister Todotua Pasaribu said the ministry is freezing non-compliant projects and tightening coordination with regions. He noted that a few months earlier it was the ministry, not local government, that revoked a high-profile project linked to Russian investors.
A joint desk between BKPM and Bali's DPMPTSP (the provincial one-stop permit office) is being set up to cross-check licences.
Why it matters
Both sides pointed to large-scale land conversion, lost rice fields, flooding and weak screening of applications. The joint desk is meant to close the gap between what OSS issues and what local rules allow.
Properties that were licensed only on paper now face a higher chance of review.
What changed later
BKPM Regulation No. 5 of 2025 took effect just days after this exchange. It cut the PT PMA minimum capital from Rp 10 billion to Rp 2.5 billion and updated OSS licensing rules.
The province, meanwhile, went its own way. In 2026 Bali enacted Perda No. 4 of 2026, which bans nominee land ownership and restricts building on productive land. Oversight now comes both from Jakarta and from the provincial level.