Bali intends to execute moratoriums on certain development initiatives to address issues with excessive tourism, environmental sustainability, and cultural preservation.
What is a Moratorium?
A moratorium is a short pause to certain operations or advancements, frequently intended to solve problems like resource management, overdevelopment, or environmental sustainability. Moratoriums are frequently imposed in Bali on industries such as accommodation and tourist attractions.
The ban does not stop Investment prospects entirely, even though it limits certain company areas. In compliance with Presidential Regulation No. 10/2021 JO No. 49/2021 concerning the investment sector, foreign investors can still apply for a PT PMA (Perseroan Terbatas Penanaman Modal Asing), but they must follow sector-specific restrictions.
Which Industries Are Impacted?
As of October 15, 2024, the present moratorium in Bali (Menkomarinvest rule number. 163/2024) will be in effect.
Restricted sectors include beach clubs, restaurants and bars (ISIC 56101 and ISIC 56301), villas (ISIC 55193), and new hotel constructions (ISIC 55110/55120).growing in the Tabanan region, Denpasar, Badung, Gianyar, and Nusa Penida suburbs
Regulations and the Legal Foundation
Ministerial or regional decrees that comply with Indonesian national laws regulate the moratorium's extent, and these include:
- Perka BKPM No. 4/2022
- Peraturan Persiden No. 10/2021 JO 49/2021 regarding investment sectors
For sustained economic growth, these rules make sure that certain industries are given priority while others are put on hold.
Following Menkomarinvest Regulation No. 163/2024, PT PMA applications during the moratorium, setting up a PT PMA is still feasible despite limitations if:
The company is in line with unrestricted industries.
The capital satisfies Perka BKPM No. 4/2021's minimum subscribed capital and investment realization requirements.
The application procedure complies with BKPM (Indonesian Investment Coordinating Board) Perka BKPM No. 4/2021 and the Ministry of Law and Human Rights recommendations.
During this challenging moratorium, Vidhi Law Office will help you to ensure:
Your company complies with the most recent rules.
Licenses and permits that are required are obtained quickly.
The risk management plans are in place for sustained success.
Tax planning is based on the type of investment you make.
Foreign investment is not completely stopped by moratoriums in Bali, even though they are intended to address important issues including overdevelopment and environmental sustainability. Investors can still create a PT PMA in approved industries and support Bali's developing economy with the right help from our experienced lawyers.
Contact us now for a consultation.
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