Bali Chamber Demands OSS Overhaul, Targets IDR 10B Foreign Investment Floor

TL;DR

Bali's provincial chamber of commerce, Kamar Dagang dan Industri (Kadin) Bali, convened its Rapat Pimpinan Provinsi (Rapimprov) on Thursday…

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The Facts

Bali's provincial chamber of commerce, Kamar Dagang dan Industri (Kadin) Bali, convened its Rapat Pimpinan Provinsi (Rapimprov) on Thursday, September 24, 2026, at the Kadin Bali Secretariat in Denpasar. The meeting was held simultaneously with equivalent sessions across other Indonesian provinces, all feeding into preparations for the upcoming national leadership meeting, known as Rapimnas Kadin.

Kadin Bali Chairman I Made Ariandi told reporters after the session that the Rapimprov serves as a mechanism to collect ground-level business concerns from the region before they are escalated to the national stage. According to Ariandi, input from provincial chambers is essential to ensure that national policy outcomes reflect the real challenges faced by businesses operating outside Jakarta.

The central issue flagged by Kadin Bali was the perceived encroachment of foreign capital into sectors historically dominated by local entrepreneurs and micro, small, and medium enterprises (UMKM). Ariandi was emphatic that Kadin Bali does not oppose foreign direct investment as a principle. However, he argued that investment entering Indonesia must be 'quality investment' that does not displace the commercial space available to domestic and regional business operators. 'We are not closing investment, we are opening quality investment,' he stated.

At the heart of Kadin Bali's concerns is the current minimum foreign investment threshold, set at approximately IDR 10 billion (roughly USD 620,000 at current exchange rates). Ariandi argued this figure is relatively modest in the context of today's economic conditions and allows foreign investors to enter a wide range of business activities that directly overlap with the UMKM sector. He cited vehicle rental, residential and land leasing, and property development as concrete examples of activities accessible at that capital level.

The OSS (Online Single Submission) system, established under PP 5/2021 and given statutory authority through the Cipta Kerja Law (UU No. 6/2023), provides a unified digital gateway for business licensing in Indonesia, including the issuance of the Nomor Induk Berusaha (NIB) that underpins all formal business registration, foreign worker permits (RPTKA), and investor stay permit applications. Any revision to OSS rules or investment thresholds would flow through this system and affect the entire chain of business and immigration compliance for foreign-owned entities. Kadin Bali's push for revision will be formally submitted through the Rapimnas process, giving it a pathway to influence national regulatory reform.

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Bali Zero Take

Our Analysis

This story is an early-stage policy signal, not yet a regulatory change — but it deserves serious attention from anyone with a PT PMA or a foreign-investment structure in Bali. Kadin Bali carries real lobbying weight at the national level, and the Rapimnas channel means these proposals will land on the desks of policymakers with actual authority over OSS architecture and the Negative Investment List.

The IDR 10 billion threshold debate is the one to watch. If that floor is raised significantly — some industry voices have informally discussed figures of IDR 25–50 billion — a meaningful portion of existing small-to-medium PT PMA structures could face retroactive compliance pressure or find sector access curtailed at renewal. Sectors like short-term rental management, transport, and small-scale property development are explicitly named as contested territory.

Clients who are currently in the planning phase for a PT PMA, or who operate in sectors with heavy UMKM overlap, should treat this as a reason to move quickly on registration while current rules remain in force, and to ensure their KBLI codes are defensibly aligned with genuinely foreign-investable activities.

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In Practice

Under current OSS-RBA rules (PP 5/2021), foreign investors can establish a PT PMA, obtain a NIB, and access medium-to-high risk business sectors at an investment commitment starting around IDR 10 billion. That NIB is the keystone of the entire compliance chain: it is required for RPTKA (foreign worker plans), KITAS E28A/E28B investor stay permits, and KITAS E23 working permits under the One Sponsor Policy (SE Kemnaker SE-3/836/PK.04/I/2026).

If the OSS revision that Kadin Bali is proposing results in a higher investment floor, or in tighter KBLI sector restrictions for foreign capital, then businesses currently relying on a PT PMA with an investment commitment near the current minimum could face compliance gaps at renewal or when applying for new permits. Sectors most explicitly in the crosshairs — vehicle rental, residential leasing, land rental, small-scale property — are among the most popular entry points for foreign entrepreneurs in Bali. Regional enforcement of Perda Bali 2/2025 compliance adds an additional layer of local oversight that could amplify any national-level OSS tightening.

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Next Steps

Primary Source

Exa: balipost.com

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