Regulation Watch · Business Licensing · Badung Regency, Bali
Badung Creates Tax and Licensing Incentives for Investors
Badung Regulation 1/2026 creates an application route for foreign and domestic investors to seek regional tax relief, licensing facilitation, location support, and other investment incentives.
- Published
- Promulgated and published in the Badung Regency Gazette on 28 January 2026 after enactment on 28 January 2026
- Effective
- 28 January 2026
- Updated
- 12 September 2026
Who is affected
Foreign and domestic investors, PT PMA companies, Indonesian companies, joint ventures, developers, tourism and hospitality businesses, and other enterprises starting, expanding, or renewing a licensed business in Badung Regency.
Practical impact
A qualifying investor may apply to the Regent of Badung for fiscal incentives, including a reduction, relief, exemption, or cancellation of regional-tax or regional-retribution principal and/or sanctions. Non-fiscal facilities may include faster integrated licensing, location or land facilitation, construction-investment facilitation, technical assistance, access to skilled labour or raw materials, certification support, and promotion. The benefit is not automatic: the applicant must satisfy one or more contribution criteria, pass verification and assessment, and receive a Regent Decision stating the benefit, duration, rights, and obligations. Detailed criteria, benefit forms, procedures, and reporting formats must be set by Regent Regulations.
Late discovery: Badung Regional Regulation 1/2026 was enacted, promulgated, and made effective on 28 January 2026. It remains actionable because it expressly covers both domestic and foreign investors and creates the legal route for seeking local fiscal and non-fiscal support when starting, expanding, or renewing a business in Badung.
The available fiscal forms include a reduction, relief, exemption, or cancellation of the principal and/or sanctions for regional taxes and regional retributions. Possible non-fiscal facilities include investment-opportunity data, infrastructure, location or land facilitation, technical support, faster licensing through integrated one-stop services, construction-investment facilitation, strategic-area support, certification, skilled-labour access, raw-material access, and promotion. These are possible forms, not an automatic entitlement or a promise that every form is currently operational.
Eligibility depends on measurable contributions. The listed criteria include community income, employment, local resources, public services, regional economic output, environmental sustainability, infrastructure, technology transfer, pioneer industries, research and innovation, partnerships with micro or small businesses or cooperatives, domestic capital goods, priority programmes, and exports. An applicant files in writing to the Regent, an assessment team verifies and scores the request, and the approved benefit is fixed by a Regent Decision.
The key control is post-approval compliance. Recipients must report at least annually and maintain the criteria and obligations supporting the award. Badung may review the benefit at least once a year and stop it early or decline renewal if those conditions are no longer met. Investors should therefore confirm the implementing Regent Regulations and application mechanics with Badung DPMPTSP before relying on this route in a budget, land commitment, licensing timeline, or expansion decision.
Required action
- Identify a documented eligibility case, such as local employment, use of local resources, environmental sustainability, infrastructure, technology transfer, research and innovation, an UMK or cooperative partnership, an export orientation, or alignment with a national or Badung priority programme.
- Before applying, confirm with Badung DPMPTSP whether the required Regent Regulations, assessment team, application channel, forms, and current supporting-document checklist are operational for the requested incentive.
- For a new business, prepare the company profile, investment or business plan, and exact incentive or facility requested; for an expansion, prepare the business scope, management performance, business development evidence, and requested benefit.
- Do not include an assumed tax reduction, licensing acceleration, land or location facility, or other benefit in the committed project economics until it is granted by a Regent Decision.
- If approved, calendar the decision's conditions and duration, maintain good corporate governance and corporate social responsibility evidence, keep LKPM and local reporting current, and submit the required report to the Regent through the competent office at least once each year.