Understanding the National Strategic Projects: Impact on Foreign-Owned Companies in Bali
Foreign investors in Bali often focus on saturated markets like property in South Bali. They miss broader infrastructure shifts that define long-term profitability and legal stability in the region.
Traditional sectors face tighter screening as local authorities prioritize high-value investments that support the local economy. This shift in policy aims to attract capital that provides long-term value-added benefits to the island’s development.
Operating without knowledge of the national strategic list causes a PT PMA in Indonesia to risk rejection during the licensing process. Speculative rental models face increasing scrutiny from provincial regulators who want to protect local businesses from foreign overcrowding.
This pressure makes it harder for small entities to thrive in overcrowded neighborhoods without a clear, government-aligned strategy. Navigating these changes requires a deep understanding of the central government’s priorities for the coming years.
The new Perpres 12/2025 outlines the strategic direction for 2025 to 2029 across the archipelago, highlighting key growth areas outside of traditional hubs. Understanding these official tax regulations and project goals allows investors to secure their business future and gain first-mover advantages.
It helps Prabowo PSN foreign-owned companies navigate the evolving regulatory landscape and infrastructure upgrades in Bali. Aligning your business model with these national priorities is now the most effective way to ensure smooth operations and long-term sustainability in Indonesia
Table of Contents
- Defining the National Strategic Projects
- Strategic infrastructure in North Bali
- Land and logistics toll corridors
- Rebalancing the investment landscape in Bali
- Sector restrictions for foreign capital
- Opportunities in logistics and engineering
- Regulatory screening and licensing shifts
- Financial and compliance considerations
- FAQs about Prabowo PSN foreign-owned companies
Defining the National Strategic Projects
The Prabowo administration formally established Perpres 12/2025 to govern the National Strategic Projects (PSN). This regulation covers 77 key projects and programs across Indonesia. It includes 48 carry-over projects and 29 entirely new initiatives for the 2025 to 2029 period.
PSN status grants these projects central government priority. This status ensures accelerated licensing and land acquisition support. It also facilitates special coordination between various ministries to remove bureaucratic hurdles.
These projects cover diverse sectors like food, energy, and water security. Industrial downstreaming and social programs like Makan Bergizi Gratis also feature heavily. For Prabowo PSN foreign-owned companies, this means a shift in where national capital flows.
Infrastructure remains a primary focus of the national strategic list. The government aims to strengthen logistics and maritime access nationwide. In Bali, these efforts focus on rebalancing development between the north and south regions.
The North Bali International Airport is a central element of the 2025 to 2029 priority list. Government efforts in 2025 focused on final location determination and feasibility studies. This project aims to open the northern coast to higher-end tourism and logistics.
Existing pressure on Ngurah Rai International Airport makes this new hub essential. It will create a second entry point for international travelers. This shift encourages Prabowo PSN foreign-owned companies to evaluate locations in Singaraja.
Maritime upgrades also support the push into North Bali. Port facilities will see significant investment to improve inter-island connectivity. This creates new avenues for maritime-linked businesses in Indonesia.
Investors should monitor the final legal annex of the Perpres for specific project codes. While public summaries highlight the airport, the complete list contains detailed infrastructure sub-projects. These details determine which local areas receive the most public funding.
The Toll Gilimanuk to Mengwi remains a vital national priority for regional connectivity. This corridor links West Bali to the established southern tourism hubs. It strengthens logistics flows for goods entering from Java.
Provincial leaders urge the central government to complete existing toll projects first. This focus ensures that realized investment leads to immediate economic benefits. Connectivity is the primary goal for land infrastructure in Bali.
A planned strategic toll corridor will link central Bali to the north. This route covers Singapadu, Ubud, Gianyar, and Kintamani. It eventually reaches the new airport site in Singaraja.
This corridor serves both logistics and tourism interests. It allows for faster movement of people and products across the island. Such infrastructure improvements directly impact the value of a PT PMA in Indonesia focused on transport.
Bali currently holds over 20% of the national PT PMA project count. However, the island only represents about 1.7% of the total realized investment value. This reveals a high concentration of small-scale entities.
Investment heavily centers on real estate, hospitality, and consulting. Provincial authorities criticize these low-quality investments for crowding out local actors. They seek to attract businesses that contribute more significant capital and technology.
Local departments have already proposed closing certain low-risk sectors to new foreign capital. Examples include small-scale real estate services and motorbike rentals. This recalibration forces Prabowo PSN foreign-owned companies to move toward high-value sectors.
The Ministry of Investment gave a preliminary green light for these local restrictions. Formal regulations are expected to follow this policy direction soon. Investors must adapt their business models to align with these strategic shifts.
The government wants to restrict foreign capital in saturated fields. Small real estate leasing and basic vehicle rentals face the most significant pressure. These sectors are often viewed as low-risk and low-impact by regulators.
Nudging foreign capital toward PSN goals is a primary policy objective. These goals include infrastructure support and green energy projects. Creative industries and high-value tourism also receive government backing.
A PT PMA in Indonesia should focus on sectors that provide local value-added. Pure lifestyle property plays will face increased scrutiny during the application process. Authorities prefer investments that create sustainable jobs for the local population.
The exact list of restricted KBLI codes is currently under review. As of early 2026, these remain policy directions reported by provincial officials. Investors should consult with a specialist before registering a new company in Bali.
Areas around the planned North Bali airport will see priority public investment. This creates a massive demand for supporting infrastructure and services. Construction and engineering firms can find substantial opportunities in these developing zones.
Logistics and warehousing are also set for growth. Cold-chain storage is particularly valuable for the food security goals of the administration. Engineering firms in Indonesia can support these national projects through specialized technical services.
Mid-to-high-end accommodation will be needed to support the northern tourism push. Professional services linked to infrastructure development will also see increased demand. Prabowo PSN foreign-owned companies should evaluate these greenfield opportunities.
Building partnerships with local firms can ease the entry into these strategic sectors. Infrastructure projects often require local expertise and domestic supply chains. This collaboration strengthens the standing of a foreign-owned company in Bali.
PSN-linked projects benefit from faster central coordination. Land issues and technical approvals receive priority treatment from national ministries. This accelerated process is a major advantage for strategic investors.
However, Bali provincial authorities are simultaneously tightening screening for non-strategic sectors. They work closely with the central ministry to evaluate every new PMA application. Tighter screening aims to eliminate mis-licensed or informal businesses.
The government monitors if a company operates outside its permitted KBLI. Using a low-risk license for high-impact activities triggers strict enforcement. Informal rental fleets and unlicensed real estate agents are primary targets for these checks.
Provincial proposals to close specific sectors could affect existing businesses. Conversions, expansions, or renewals might face new requirements. Every PT PMA in Indonesia must ensure its licensing accurately reflects its daily operations.
Liam, a 42-year-old developer from Australia, moved to Pererenan to start a business. He initially planned a small-scale motorbike rental service through a PT PMA in Indonesia. He soon realized that local authorities were pushing to close this sector to foreign ownership.
Liam faced evolving licensing requirements for low-risk businesses. The saturated market threatened the viability of his investment. That’s when he used a professional consulting service to pivot his business model.
He decided to focus on engineering support for the new toll corridors in Bali. This alignment with the national strategic projects improved his licensing speed. His company now provides technical consulting for logistics infrastructure in Indonesia.
Investors must understand that a PSN label does not grant automatic tax breaks. Income tax holidays and VAT exemptions depend on separate legal instruments. These include tax allowances and Special Economic Zone (KEK) status.
Claiming automatic benefits purely from proximity to a project is incorrect. Every financial incentive must be verified against current ministry regulations. Maintaining transparency in financial reporting remains the best strategy for Prabowo PSN foreign-owned companies.
It aims to strengthen infrastructure, connectivity, and national food security.
Yes, these projects get priority coordination between central government ministries.
Yes, it re-entered the national strategic list for the 2025 to 2029 period.
No, tax incentives require separate applications through specific government programs.
Yes, local authorities are proposing to close low-risk sectors to foreign capital.
North and West Bali offer more infrastructure-linked growth potential than the south.
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