Disclaimer: This article is for informational purposes only. Any ROI figures are not guaranteed returns, as actual results depend on various business and market factors. Always seek professional advice before making any final decision.
Key Takeaways
| Business Ideas in Bali for Expats | Est. ROI / Year | Typical Gross Margin | Payback | Capital Level | Best For |
|---|---|---|---|---|---|
| Hospitality & Tourism | 8–25% | 20–75% | 1–10 yrs | High | Hotels, travel & MICE |
| Healthcare & Wellness | 8–25% | 35–75% | 1.5–12 yrs | Medium–High | Clinics, wellness & spa |
| Technology & Infrastructure | 8–40% | 30–85% | 1–10 yrs | Low–High | Tech, EV & sustainability |
| Trade, Wholesale & Retail | 8–30% | 15–60% | 1–7 yrs | Medium | Distribution & retail |
| Food & Beverage | 10–25% | 35–75% | 1–4 yrs | Medium | Restaurants, cafés & food brands |
| Digital & Creative | 15–40% | 45–85% | 1–5 yrs | Low–Medium | Agencies, software & digital services |
| Real Estate Services | 10–30% | 25–65% | 1–5 yrs | Medium–High | Design, development & property services |
| Niche Tourism Experiences | 12–35% | 35–70% | 1–3 yrs | Low–Medium | Experiences & wellness tourism |
| Export & E-Commerce | 10–35% | 25–70% | 1–4 yrs | Low–Medium | Product brands & international sales |
| B2B Services | 10–40% | 25–85% | 1–5 yrs | Low–Medium | Recurring professional services |
Bali is now a popular place for foreign entrepreneurs searching for new opportunities to start businesses, as the island’s economy grew by 5.82% in 2025 (which is higher than Indonesia’s overall rate of 5.11%).
Many foreigners have started businesses in well-known tourist spots like Canggu, Seminyak, Ubud, and Kuta.
However, not all businesses here allow foreign investment. Some are limited by the newest government rules. Here is a detailed list of the best businesses to invest in Bali.
What Businesses Can Foreigners Invest in Indonesia? Indonesia’s Positive Investment List
Indonesia’s Positive Investment List determines which business sectors are open to domestic and foreign investment. This is regulated under Presidential Regulation No. 10 of 2021, as amended by Presidential Regulation No. 49 of 2021, following Indonesia’s Job Creation Law.
Some of the business activities covered include:
| Business Activity / Sector | KBLI No. | Risk Level | Main Licensing Requirements |
|---|---|---|---|
| Manufacture of Iron and Steel | 24101 | High | Operational license, industrial park requirements, SNI compliance, and SIINAS registration |
| Non-Ferrous Base Metal Manufacturing | 24202 | High | Operational license, SNI compliance, industrial location requirements, and SIINAS registration |
| Pharmaceutical Industry for Humans | 21011 | High | Operational and industrial licensing requirements |
| Pharmaceutical Products Industry for Humans | 21012 | High | Industrial standards, SNI-related requirements, and SIINAS registration |
| Electric Power Generation | 35111 | High | IUPTL and relevant feasibility, infrastructure, and environmental requirements |
| Software Publishing | 58200 | High | Industrial and SIINAS-related requirements |
| Commercial Web Portals / Digital Platforms | 63122 | Medium-High | PPMSE license and relevant digital-platform requirements |
| Wholesale of Pharmaceutical Drugs | 46441 | High | Facility or warehouse registration and BPOM product registration |
| Wholesale of Other Food and Beverages | 46339 | Low | Depends on the products and business activities involved |
| Domestic Sea Transportation for Tourism | 50113 | High | SIOPSUS, tourism standards, and health certification |
| Wired Telecommunications Services | 61100 | High | Telecommunications network provider license and technical requirements |
| Wireless Telecommunications Services | 61200 | High | Mobile network operating permit and related telecommunications requirements |
| Private Hospital Activities | 86103 | High | Private hospital license |
| Health Support Services | 86903 | High | Medical laboratory or other relevant healthcare permits |
For the complete list, please review the appendices to Presidential Regulation No. 10/2021 and its amendments, or contact iLot Legal Advisor for free guidance (no obligation).
Read More: Guide to Starting a Business in Bali as a Foreigner
Does This Mean Foreigners Cannot Start a Small, Low-Budget Business in Bali?
Yes. Foreign business investment in Bali now faces limits, especially for simple or small, lower-risk businesses, because of many cases of permit misuse.
Since May 2026, Bali’s provincial government and Indonesia’s Ministry of Investment/BKPM have restricted foreign-owned companies (PT PMA) from accessing the Online Single Submission (OSS) system to get licenses for 18 low-risk and medium-low-risk business categories:
| Restricted Business Category | Investment Condition | Examples |
|---|---|---|
| Accommodation sectors reserved for local businesses | Closed to foreign ownership | Certain Group 55 accommodation activities, including Pondok Wisata, non-star/Melati hotels, villas, and other small accommodation businesses |
| Businesses requiring MSME partnerships | Partnership with local small businesses may be required | Traditional food processing, handicrafts, small-scale agriculture, and labor-intensive cultural products |
| Businesses with foreign ownership limits | Foreign equity may be capped | Publishing, broadcasting, postal services, domestic transportation, and certain construction activities |
| Highly regulated industries | Additional permits or government approval may be required | Defense-related industries, traditional medicine, and certain manufacturing activities |
Indonesia also prohibits private investment in several sensitive sectors, including:
- Class I narcotics
- Gambling
- Trade involving protected CITES Appendix I species, natural coral extraction, chemical weapons, and ozone-depleting substances.
Sector-Based Business Opportunities in Bali
1. Hospitality and Tourism
Estimated industry ROI is 8–15% annually for well-managed boutique hotels and villa projects. Returns depend on location, occupancy, ADR, cost control, and management quality.
| Business Activity | KBLI | Foreign Ownership | Main License Requirements | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|---|
| Star Hotel | 55101–55104 | Open | Verified Standard Certificate, PBG/SLF, environmental permits | 60–75% | 8–15% | 6–10 years |
| Villa | 55203 | Closed | Verified Standard Certificate, PBG/SLF, environmental permits | 65–80% | 8–15% | 5–8 years |
| Aparthotel | 55204 | Closed | Verified Standard Certificate and PBG/SLF | 60–75% | 8–14% | 5–8 years |
| Hotel Melati / Non-Star Hotel | 55106 | Closed | Verified Standard Certificate and local permits | 55–70% | 7–13% | 5–8 years |
| Pondok Wisata | 55201 | Closed | Verified Standard Certificate and local permits | 55–70% | 7–12% | 4–7 years |
| Travel Agency | 79121 | Open with restrictions | Verified Standard Certificate, K3L declaration, SPPL, relevant registration | 20–35% | 12–25% | 1–3 years |
| MICE Operations | 82300 | Open | Verified Standard Certificate | 25–45% | 10–20% | 2–4 years |
Higher-quality accommodation can offer foreign-investment opportunities when the business type, quality standard, and licensing requirements are met; smaller accommodation categories usually face more restrictions.
Read More: Starting Your Bali Property Rental Business: Key Questions
2. Healthcare and Wellness
Bali wellness industry returns are estimated at 10-20% each year. Wellness and lifestyle clinics usually see profits sooner than hospitals or certified medical centres.
| Business Activity | KBLI | Main License Requirements | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Private Hospital | 86103 | Private Hospital License and zoning compliance | 35–55% | 8–15% | 7–12 years |
| Private Specialist Clinic | 86105 | Specialist clinic license and zoning compliance | 45–65% | 15–25% | 2–4 years |
| Health Support Activities | 86993 | Relevant medical laboratory permits and zoning compliance | 40–60% | 12–20% | 3–5 years |
| Spa Activities | 96230 | Verified Standard Certificate and zoning compliance | 55–75% | 15–25% | 1.5–3 years |
| Longevity & Preventive Healthcare | 86105 / 86993 | Specialist healthcare licensing and technical certification | 45–70% | 12–22% | 2–5 years |
Healthcare has significant regulatory requirements, so investors should verify professional licenses, facility standards, land zoning, and the exact KBLI before committing capital.
3. Technology and Infrastructure
Estimated industry ROI ranges from 8% to 40% annually, depending on whether the business is asset-light technology or capital-intensive infrastructure. SaaS (Software as a Service) typically achieves gross margins of 70% to 85%, while professional services average around 30%.
| Business Opportunity | KBLI | Key Requirements | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| EV Charging Stations | 35114 | Appropriate business structure and partnership arrangements with PLN | 40–60% | 8–15% | 5–10 years |
| Vertical Farming & Hydroponics | 01133 / 28210 | Relevant agricultural or equipment licensing, zoning, and operational permits | 35–55% | 8–18% | 3–6 years |
| Sustainable Waste Management | 38219 | Environmental approvals, waste management permits, and zoning compliance | 25–50% | 8–15% | 4–8 years |
| SaaS / Property & Booking Technology | 62019 / 62012 | IT licensing, platform operations, data management | 70–85% | 20–40% | 2–5 years |
| Digital Agency / Creative Production | 73100 | Advertising, marketing, or production activity scope | 45–65% | 15–30% | 1–3 years |
4. Trade, Wholesale, and Retail
Estimated industry ROI is 10–20% annually for most distribution and retail models; premium niche retail, private-label products, and e-commerce can reach higher returns. Wholesale typically has lower gross margins but higher volume, while specialty retail can achieve 30–60% gross margins.
| Business Opportunity | KBLI | Key Requirements | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Wholesale of Pharmaceuticals and Cosmetics | 46441 | Warehouse/facility registration and BPOM product registration | 15–30% | 10–18% | 2–4 years |
| Pharmaceutical Product Manufacturing | 21012 | Industrial standards, SIINAS registration, and zoning compliance | 35–60% | 12–22% | 3–6 years |
| Wholesale Food & Beverage | 46339 | BPOM MD/ML registration and applicable halal certification | 15–30% | 10–18% | 2–4 years |
| Supermarket | 47111 | MSME partnership and minimum area requirements | 15–25% | 8–15% | 3–5 years |
| Department Store | 47191 | MSME partnership and minimum area requirements | 25–40% | 8–15% | 4–7 years |
| Specialty Retail / Lifestyle Store | Depends on goods | Trading license, product-specific permits | 40–60% | 15–25% | 1.5–3 years |
| E-commerce / Online Retail | 47911–47919 | E-commerce and product-specific requirements | 40–60% | 15–30% | 1–3 years |
5. Food and Beverage
The FnB industry reports an estimated ROI of 10–25% for well-run restaurants, cafés, and specialty F&B concepts. Bali restaurants are often cited as having 15–25% net margins in strong locations, though full-service restaurants generally have tighter net margins of 3–9% in broader benchmarks.
| Business Opportunity | KBLI | Key Considerations | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Restaurant | 56101 | Restaurant licensing, hygiene, zoning | 60–70% | 10–20% | 2–4 years |
| Café / Food Shop | 56103 | Food-service licensing and zoning | 60–75% | 12–25% | 1.5–3 years |
| Catering | Depends on activity | Food safety, production facility, event operations | 35–55% | 10–20% | 1–3 years |
| Bakery & Packaged Food | Depends on product/activity | Production permits, food registration, distribution | 45–65% | 12–25% | 1.5–3 years |
| Delivery-Focused Kitchen | 56101 / 56103 | Food-service licensing and delivery operations | 50–65% | 10–20% | 1.5–3 years |
6. Digital Agency, Software, or Creative Production
Digital businesses require less physical infrastructure and can serve customers beyond Bali, making recurring revenue and scalable delivery the main value drivers. It has an estimated ROI of 15-40% per year.
B2B services often reach payback quickly because first-invoice gross margins can be 50–65%, while SaaS can operate at 70–85% gross margins once the product is built
| Business Opportunity | KBLI | Key Considerations | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Software & Web Development | 62019 | IT business licensing and activity scope | 50–70% | 15–30% | 1–3 years |
| E-Commerce Application Development | 62012 | Applicable to e-commerce application development | 50–70% | 15–30% | 1–3 years |
| Digital Marketing & Advertising | 73100 | Advertising and marketing activity scope | 45–65% | 15–30% | 1–2 years |
| Property & Booking Technology | 62019 or other IT KBLI | Software development, platform operations, data management | 70–85% | 20–40% | 2–5 years |
7. Real Estate Services
The real estate business sees 10–25% ROI for service-based businesses. Property development may offer higher returns, but it requires more capital and carries greater approval and market risks.
| Business Opportunity | KBLI | Key Considerations | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Bali Architecture | 71101 | Professional qualifications and applicable business certification | 45–65% | 15–25% | 1–3 years |
| Interior Design | 74120 | Professional requirements and applicable certification | 45–65% | 15–25% | 1–3 years |
| Furniture Sourcing / Wholesale | 46491 | Trading licenses and supplier structure | 25–45% | 10–20% | 2–4 years |
| Bali Property Development | Depends on scope | Developer, contractor, and project-specific permits | 25–45% | 15–30% project ROI | 2–5 years per project |
| Bali Property Management | Depends on scope | Management agreements, staffing, compliance | 35–55% | 12–22% | 1–3 years |
Read More: Buying vs Building Villa in Bali: 9 Key Factors to Consider
8. Niche Tourism Experiences
Tourists today are increasingly looking for unique experiences, from culinary adventures to wellness tourism. Well-designed, high-quality niche tourism experiences can offer an estimated ROI of 12–30% annually.
| Business Opportunity | KBLI | Key Considerations | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Culinary Experiences | Depends on activity | Food service, tourism, venue, hygiene | 45–65% | 12–25% | 1–2.5 years |
| Cultural Workshops | Depends on activity | Community involvement and permissions | 50–70% | 15–30% | 1–2 years |
| Corporate Retreats | Depends on activity | Event, accommodation, transport, tourism | 35–55% | 15–30% | 1–3 years |
| Photography Tours | Depends on activity | Photography, guiding, transport | 50–70% | 15–30% | 1–2 years |
| Surf & Nature Experiences | Depends on activity | Safety, insurance, equipment, guides | 40–60% | 12–25% | 1–3 years |
| Wellness Experiences | Depends on service | Wellness or healthcare qualifications may apply | 45–70% | 15–30% | 1–3 years |
| Premium Private Experiences | Depends on activity | Tourism licensing and service scope | 50–70% | 18–35% | 1–2.5 years |
9. Export and E-Commerce
Strong product brands and private-label businesses can offer attractive profit potential, especially when they build a clear market position and manage production and distribution efficiently.
Estimated industry ROI can range from 15–35% annually, while e-commerce businesses have reported average gross margins of around 49.5% and net margins of about 10.6%.
| Business Opportunity | KBLI | Key Considerations | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Furniture Wholesale / Export | 46491 | Trading, export documentation, product classification | 25–45% | 10–20% | 2–4 years |
| Online Furniture & Homeware Retail | 47913 | E-commerce and product-specific requirements | 45–60% | 15–30% | 1.5–3 years |
| Online Fashion Retail | 47912 | E-commerce, production, export | 50–70% | 15–35% | 1–3 years |
| Online Food / Cosmetics Sales | 47911 | Product registration may also be required | 40–60% | 12–25% | 1.5–3 years |
| General Online Retail | 47914 / 47919 | Exact code depends on goods sold | 40–60% | 12–25% | 1–3 years |
| Private-Label Manufacturing | Depends on product | Production licenses, standards, product registration | 45–70% | 15–35% | 2–4 years |
10. B2B Services for Bali Businesses
B2B services can be attractive because they often generate recurring revenue without requiring major investment in physical assets. Services such as marketing retainers, software support, revenue management, and operational consulting can deliver an estimated industry ROI of 15–35%.
| Business Opportunity | KBLI | Key Considerations | Gross Margin | Potential Net ROI | Payback Period |
|---|---|---|---|---|---|
| Marketing & Advertising Support | 73100 | Advertising and marketing service scope | 45–65% | 15–30% | 1–2 years |
| Business Software | 62019 | Software development and IT services | 60–85% | 20–40% | 2–5 years |
| Recruitment & HR Services | Depends on service | Employment and manpower regulations | 35–55% | 12–25% | 1–3 years |
| Bookkeeping Administration | Depends on scope | Must not operate as a regulated accounting profession without authorization | 40–60% | 12–25% | 1–3 years |
| Procurement Services | Depends on activity | Supplier management and commercial structure | 25–45% | 10–20% | 1–3 years |
| Revenue Management | Depends on service | May fall under management or business consultancy | 50–70% | 15–30% | 1–2 years |
| Operational Consulting | Depends on activity | Exact scope of consulting services | 50–70% | 15–30% | 1–2 years |
| Customer-Service Outsourcing | Depends on model | Staffing, outsourcing, and employment requirements | 35–55% | 12–25% | 1–3 years |
Which Business is the Most Profitable for Foreigners in Bali?
Boutique villa rentals and property management are the most profitable and popular business options for foreigners in Bali. If you manage luxury or boutique villas well in areas like Canggu, Uluwatu, or Ubud, you can see annual returns on investment of up to 12%.
However, villa rentals and property management depend a lot on the season. You need a good strategy to handle both the busy and quiet times of the year.
If you need help with Bali property investment, iLot Property Bali offers free guidance. Talk to us anytime.
Conclusion
Those are some of the top business opportunities in Bali for foreign investors. The right choice ultimately depends on your experience, business goals, and how much capital you are prepared to invest.
Need help setting up your business or planning an investment in Bali? Speak with our legal advisor for free, with no obligation, whenever it’s convenient for you.
FAQ
Yes, especially in tourism, hospitality, wellness, property, food, and digital services. However, competition, high operating costs, seasonality, and legal requirements should be carefully considered.
Not necessarily. Some activities allow full foreign ownership. Others may impose ownership limits, partnership requirements, or restrictions. Learn more about how to set up a foreign-owned business in Indonesia.