Denpasar, Bali (ANTARA) – Bali has blocked foreign investors from accessing Indonesia's online licensing system for 18 business categories, citing concerns that foreign-owned companies are crowding out local businesses, including micro, small and medium enterprises.Governor Wayan Koster said Thursday the decision followed an evaluation of licenses issued to foreign-investment companies in low- and medium-low-risk business categories.The provincial licensing evaluation team is investigating possible misuse of risk-based licensing rules by investors entering sectors closely linked to MSMEs, Koster said.Some foreign investors are exploiting low-risk business categories, which require only a Business Identification Number, as a loophole to avoid significant capital investment requirements, he said.Low- and medium-low-risk categories are vulnerable to regulatory loopholes because registrations are automatically issued without standard certificates or other permits, Koster said.Some foreign-investment companies have entered the market through businesses that threaten MSMEs, including operations using virtual offices, he said.“This situation may result in unfair competition and put significant pressure on local businesses, particularly MSMEs,” Koster said.After obtaining approval from the investment minister, Bali immediately revoked access to the online licensing system for several low- and medium-low-risk business sectors.The restricted sectors include accommodation, rentals, retail, consulting and other activities closely linked to the MSME business environment.The 18 business categories include star-rated and budget hotels, owned or leased real estate, management consulting, vehicle rentals, clothing retail and textile retail.They also include motorcycle rentals, food retail, mobile agricultural-food retail, other accommodation, bars and cafes, traditional medicine shops, and tailoring services.The remaining categories cover stadium facilities, fitness centers, sports activity promotion and industrial management consulting.“Access to the online licensing system has been closed across Bali since the third week of May 2026,” Koster said.Foreign investors can no longer apply for new permits through the system for affected sectors until further regulations are issued under prevailing laws.Companies must continue submitting investment activity reports until the relevant business category is deactivated or removed from the licensing system.Koster said Bali's regional leaders would firmly address licensing violations while remaining open to high-quality, responsible investment that supports the local economy.“Investment should align with Bali's development vision, respect local wisdom and strengthen a people-oriented economy based on MSMEs,” he said.