Bali’s Motorcycle Rentals Face Foreign-Investment Scrutiny: What Business Owners Should Check

TL;DR

Bali’s investment authorities are examining suspected foreign involvement in motorcycle rental businesses, raising questions about whether company…

---

The Facts

Bali’s investment authorities are examining suspected foreign involvement in motorcycle rental businesses, raising questions about whether company ownership, registered activities and actual operations match.

Speaking on 1 October 2026, Bali DPMPTSP chief I Ketut Sukra Negara said no more than five PMA companies held motorcycle-rental business permits, while estimating that 400–500 rental operations could involve foreign capital. His remarks were reported by detikBali that day. Original reporting

The figures need careful interpretation

The remarks identify a concern for supervision. They do not provide a published list establishing that every operation in the estimate has violated the law.

The two figures also refer to licensed PMA companies and estimated operations. Without a consistent dataset, they should not be converted into a percentage of businesses operating illegally.

Officials additionally highlighted suspected nominee arrangements and companies whose activities on the ground allegedly differed from their registrations. Shared office addresses were discussed in that context. Investors should verify the company's permitted domicile and its actual operating location with the relevant authority. Original reporting

Check the classification version, not just the code

Business owners reviewing their registrations need to check which KBLI version applies.

BPS’s KBLI 2025 publication includes motorcycle rental within code 77100. The OSS classification page reviewed for this article is explicitly labelled KBLI 2020 and uses the earlier classification structure. A code copied from an older guide may therefore need interpretation rather than an automatic replacement. BPS KBLI 2025 · OSS KBLI 2020

A classification code by itself also does not settle foreign-investment eligibility or confirm that every operational approval is in place.

Bali's restrictions on new PMA registrations matter

A Bali Provincial Government notice published on 24 July 2026 says access to new OSS business licensing for PMA in specified activities, including motorcycle rental, has been closed across Bali since the third week of May 2026, pending further policy. The notice also highlights scrutiny of virtual offices and says existing licensed companies remain subject to LKPM reporting. Investors should confirm the current treatment of their specific project before committing funds; a national classification entry is not proof that a new application can proceed in Bali. Bali Provincial Government

National investment and capital requirements must also be checked separately. Article 26 of Investment/BKPM Regulation 5/2025 generally requires PMA investment of more than IDR 10 billion, excluding land and buildings, per five-digit KBLI activity per project location, subject to specified exceptions. It separately sets a minimum IDR 2.5 billion in issued/paid-up capital per limited liability company unless other legislation provides otherwise. These are different measures. Meeting a capital threshold does not override sector restrictions or Bali's limits on new applications; a small rental operation should not assume that registering a PT PMA makes its business model eligible. Regulation 5/2025, Article 26

Review the ownership arrangement

Indonesia’s Investment Law prohibits agreements or declarations stating that shares in a limited liability company are held for and on behalf of another person. Official beneficial-ownership guidance discusses this restriction in relation to nominee shareholding.

That distinction matters when reviewing a local partnership: the actual agreement and ownership structure need examination, rather than assumptions based on the nationality of people involved. Official guidance on nominee shareholding

What investors should request

Before investing or expanding, obtain the company documents, ownership information, registered business activities, operating-location details and relevant approvals. Compare those records with how the business earns revenue in practice.

For Bali rental businesses, the useful lesson is a concrete one: the paperwork and the operation should tell a consistent story.

Primary Source

Exa: thebalitimes.com

---