Best Investment Lawyers in Bali

1. About Investment Law in Bali, Indonesia

Bali follows Indonesia's national investment framework rather than a separate provincial regime. The core rules are set by national laws and implemented through the investment coordinating bodies and licensing portals. Foreign and domestic investors operate under the same overarching rules, with local permitting handled through the One-Stop Service concept.

Key features include the distinction between PMA (Penanaman Modal Asing - foreign investment) and domestic investment vehicles, a unified licensing process via the Online Single Submission system, and restrictions on land ownership for non Indonesians. Recent changes have aimed to streamline licensing and clarity around permitted sectors through omnibus reform. These reforms affect how projects are initiated and monitored in Bali as part of the national program.

Statistical and legal updates emphasize that investment licensing is now centralized and electronic, reducing redundant approvals.

Source: BKPM and OSS provide the official framework for investment licensing in Indonesia.

2. Why You May Need a Lawyer

Opening or expanding a business in Bali often requires tailored legal guidance. Below are concrete scenarios where a Bali-based legal professional can add value.

• Setting up a PMA to operate a hospitality project in Bali. You need an advocate to navigate the PMA licensing path, including izin prinsip, izin usaha, and the NIB under OSS. A lawyer can prepare the corporate structure and assist with regulatory filings.
• Securing land rights or use in Bali for an investment project. Foreign investors cannot own land outright. A solicitor can advise on land use options such as hak pakai, hak guna bangunan, or leasing arrangements and ensure compliant documentation.
• Structuring a joint venture with a local Indonesian partner. An advokat can draft and negotiate the joint venture agreement, ensure alignment with the negative investment list, and manage equity and governance provisions.
• Ensuring compliance with the investment negative list and sector openness. A legal counsel helps interpret the latest Presidential Regulation updates on sectors open to investment and advises on permissible activities in Bali.
• Handling cross border payments, tax, and profit repatriation. A lawyer coordinates with the tax authority and foreign exchange rules to ensure lawful transfer of funds and compliant reporting.
• Managing licensing delays or disputes with local authorities. An attorney can engage formal channels for quick resolution and prepare appeals or administrative challenges as needed.

3. Local Laws Overview

Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal governs investment in Indonesia and provides the baseline framework for PMA and domestic investment. It was amended by Law No. 11 Tahun 2020 on Job Creation to streamline licensing and expand open sectors. These changes apply nationwide, including Bali.

Presidential Regulation No. 44 Tahun 2020 sets the List of Business Fields Closed and Open for Investment (the negative list). It defines which sectors require additional oversight and which are accessible to foreign investment. The regulation has been revised to support faster approvals in Bali projects that fall within open sectors.

Government Regulation No. 24 Tahun 2018 established the Electronic Integrated Licensing Service (OSS) framework. It unifies licensing into a single submission portal to accelerate approvals for new and existing ventures in Bali. The OSS portal has since been expanded to cover more licensing steps and compliance reporting.

Official sources confirm that the OSS system centralizes licensing and reduces redundant approvals for Indonesian investment.

Source: Peraturan.go.id, BKPM, and OSS.

4. Frequently Asked Questions

What is PMA in Bali and how does it differ from a local company?

PMA stands for Penanaman Modal Asing and refers to foreign investment in an Indonesian-registered company. It can own shares and operate under Indonesian law, subject to the investment licensing framework. A local company is typically a PT PMA that is Indonesia-based and Indonesian-owned.

How do I start the licensing process for a Bali project?

Begin with the Online Single Submission system to apply for a principal license and business registration. A Bali-focused advocate can prepare the required documents and liaise with the local DPMPTSP and BKPM. The process ends with issuance of an NIB and other permits.

What is the difference between a PMA and a PMDN investment?

PMA is foreign investment into a company registered in Indonesia, while PMDN is domestic investment where the investor is Indonesian. Both require licensing, but PMA follows foreign investment rules and may face different sectoral constraints.

How long does it take to obtain the main licenses for a Bali project?

Typical timelines range from 4 to 12 weeks for the core licenses, depending on sector and complexity. Delays can occur if documents are incomplete or if sector-specific approvals are needed.

Do I need a local partner to invest in Bali?

Foreign investors can operate through a PMA without a local partner, but some sectors or land arrangements require Indonesian participation or local approvals. An advokat can tailor the structure to your project needs.

Do foreigners can own land in Bali for business purposes?

Foreign individuals cannot own freehold land in Indonesia. They may access land rights through arrangements such as hak pakai or hak guna bangunan via a local corporate entity, or long-term lease under certain conditions.

Is the OSS system mandatory for investment in Bali?

OSS is the mandated portal for most business licenses in Indonesia, including Bali. It centralizes registration, licensing, and some compliance reporting for cross-sector investments.

How much capital do I need to start a PMA in Bali?

There is no fixed national minimum capital requirement in the law, but practical thresholds apply depending on sector and license needs. Banks and regulators may specify minimums for certain activities.

Can profits be repatriated from Bali to the home country?

Repatriation is allowed under Indonesian currency control rules, subject to tax and reporting requirements. Investors should plan for timing, exchange rates, and local compliance.

Should I hire a local advokat in Bali to manage investment matters?

Yes. A local advokat understands Bali-specific licensing, land, and regulatory nuances. They can coordinate with national agencies and ensure compliance through the process.

Do I need to file ongoing compliance reports after licensing in Bali?

Yes. Most investment licenses require periodic reporting, tax filings, and potential environmental or sector-specific compliance checks. A lawyer can set up a compliance calendar.

What is the difference between a barrister and an advocate in Bali?

In Indonesia, the equivalent role to an advocate or pengacara is the advokat, authorized to represent clients in court and provide legal services. A Bali-based advokat can handle both advisory work and litigation if needed.

How can I compare different Bali investment lawyers?

Ask about sector experience, track record with PMA, familiarity with OSS, and references from clients with similar projects. Request a written scope of work and transparent fees upfront.

5. Additional Resources

• BKPM - Badan Koordinasi Penanaman Modal - Coordinates and promotes investment, issues principal licenses for PMA, and provides guidance on sector openness and licensing requirements. Website: bkpm.go.id.
• OSS - Online Single Submission - The unified portal for electronic licensing and registration. Website: oss.go.id.
• Directorate General of Taxes (DJP) - Taxation for Investors - Provides guidance on corporate taxes, VAT, and compliance for investment activities. Website: pajak.go.id.

6. Next Steps

1. Define your Bali investment objective and choose the appropriate vehicle (PMA or domestic). Clarify sector and expected ownership structure within 1 week.
2. Engage a Bali-based advokat to draft a scope of work and conduct initial due diligence in 1-2 weeks.
3. Collect necessary documents (passport copies, corporate documents, financing plan) and translate as needed within 2 weeks.
4. Prepare and file the OSS application, along with the core licenses (izin prinsip, izin usaha, NIB) with your lawyer’s assistance, aiming for a 4-8 week window.
5. Address land and property considerations with a local adviser if land use is involved; secure appropriate rights or leasing arrangements within 4-12 weeks.
6. Establish tax and compliance plans with the DJP and your lawyer to ensure timely filings and reporting after licensing, starting from the first quarter post-licensing.
7. Set up a compliance calendar and periodic reviews with your legal counsel to monitor regulatory changes affecting Bali investments, at least quarterly.