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Bali’s Two Special Economic Zones
Regulation-sourced deep guides to each zone — what is designated, what is built, and what is still on the masterplan.
Incentives, Decoded
What the fiscal and non-fiscal facilities actually say — and what you must verify before relying on them.
Fiscal Incentives
Decode them →
Non-Fiscal Facilities
See the list →
KEK vs Non-KEK
Compare →
Risks & Due Diligence
Read first →Why Bali SEZ Intelligence
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Claims trace to the designating regulations and official releases, with estimates flagged as estimates and unknowns labelled unknown.
Built vs Drawn
We separate what is operating today from what exists only on a masterplan — the distinction most coverage skips.
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When you are ready to act, we introduce vetted independent legal and setup specialists. They execute; we inform.
From Question to Decision
How a briefing works.
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A Bali SEZ — formally a Kawasan Ekonomi Khusus (KEK) — is a geographically delimited zone where the Indonesian government suspends or reduces a specific set of taxes, duties, and licensing burdens to attract targeted investment. Bali has exactly two: KEK Kura Kura Bali (498 ha, Serangan Island, designated by PP 23/2023) and KEK Sanur (41.26 ha, Denpasar Selatan, designated by PP 41/2022). That is not an estimate — both figures come from the designation decrees published on peraturan.bpk.go.id. If someone quotes a third Bali SEZ, ask them for the PP number; it does not exist yet.
This guide covers both zones without the marketing gloss that developers publish and without the fragmented bureaucratic tables that government portals fragment across six sub-pages. Where our numbers conflict with other published figures, we say so and show the sources. Where figures are unverified, we flag them rather than repeat them.
How Many Special Economic Zones Are in Bali?
Two, as of mid-2026. Nationally, Indonesia operates roughly two dozen active KEKs under UU No. 39/2009 (as amended by UU Cipta Kerja 6/2023 and its implementing PP 40/2021). Cumulatively those zones have attracted over IDR 200 trillion in investment and employed more than 130,000 workers since the program’s modern form began. Bali holds two of those zones, and they are structurally different enough that choosing between them — or understanding why one may not fit your business at all — matters before you engage a consultant.
Zone Profiles at a Glance
| Attribute | KEK Kura Kura Bali | KEK Sanur |
|---|---|---|
| Designation decree | PP No. 23/2023, 5 April 2023 | PP No. 41/2022, 1 November 2022 |
| Area | 498 ha | 41.26 ha |
| Location | Serangan Island, Denpasar Selatan | Sanur, Denpasar Selatan |
| Formal sectors (per PP) | Tourism + Creative Industry | Health + Tourism |
| Developer/BUPP | PT Bali Turtle Island Development (BTID) | Hotel Indonesia Natour / InJourney Hospitality; health cluster: IHC (Pertamina Bina Medika) — exact BUPP legal entity: verify at kek.go.id |
| Official investment target | IDR 89.9T (kek.go.id) / IDR 104T to 2052 (official statements) | IDR 10.2T (Kemenko Perekonomian) / IDR 6.2T (kek.go.id profile) — two sets; we cite both |
| Cumulative realized investment (Apr 2026) | IDR 1.62T / ~2,100 jobs (single secondary source — flag) | IDR 5.37T / 5,444 employed |
| Buildout horizon | ~2052 (30-year plan) | 2045 jobs/forex targets |
| Access (from Kuta/airport) | ~15 min city centre, ~20 min airport, ~30 min Seminyak corridor | Sanur seafront — eastern Denpasar, 30–40 min from airport depending on traffic |
Sources: PP 23/2023; PP 41/2022; kek.go.id zone profiles; ekon.go.id Kemenko Perekonomian releases; balibusinessnews.com (Apr 2026 progress figures — single source, flagged). See our candor note below on the conflicting Sanur targets.
KEK Kura Kura Bali — What It Is and What Is Actually Built
Kura Kura means “turtle” in Indonesian. The zone sits on Serangan Island — a 498-hectare landmass that was partially reclaimed in the 1990s and carries the environmental history that entails. BTID is the designated BUPP (zone developer-manager), appointed under the PP 23/2023 mandate. Sectors formally designated in the PP are pariwisata (tourism) and industri kreatif (creative industry), with examples in the elucidation covering MICE, multimedia, entertainment, arts, and fashion. The phrase “tech park” or “knowledge district” appears in the developer’s masterplan materials; those labels are not PP-defined sector categories. If your business model requires a formally designated “technology industry” sector in the enabling regulation, read the PP elucidation carefully or get a legal opinion.
What Is Operating or Near-Complete (mid-2026)
The UID Bali Campus (United in Diversity) is operational as a cultural and education centre. ACS Bali International School — an Anglo-Chinese School Singapore affiliate offering IB programmes — opened in August 2025. The Grand Outlet Bali, a joint venture between BTID and Mitsubishi Estate positioning itself as Bali’s first open-air luxury retail outlet, was reported at approximately 92% completion with a mid-2026 soft-opening target as of the most recent reporting. A hotel of 140-plus rooms is under construction; no operator has been named in public sources. Core zone infrastructure — roads, power, water, telecommunications — is described as complete.
Several items in the masterplan — a Tsinghua Southeast Asia Center, an international financial centre regulatory framework, the marina — are at various stages between announced and under construction. We do not state these as live because no primary source confirms operational status. Where you see other publications stating them as operational, ask for the opening date and a verifiable reference.
The Realization Gap
This matters for any investment timeline analysis. The zone’s own official first-five-year target was IDR 12 trillion. The semi-annual 2025 figure from Kemenpar cited IDR 260.96 billion — about 14.5% of the stated 2025 annual target. Cumulative realized investment by April 2026, per balibusinessnews.com (the only source publishing this figure), was approximately IDR 1.62 trillion. Against a long-run target of IDR 89.9–104 trillion, that is roughly 1.5–1.6% of the stated goal. That does not make Kura Kura a bad zone. It does make the 2052 projections exactly what they are: directional targets for a 30-year build, not a near-term pipeline.
KEK Sanur — Indonesia’s First Health-Tourism SEZ
At 41.26 ha, KEK Sanur is compact — a dense, mixed-use health and hospitality district on the site of the former Grand Inna Bali Beach hotel. PP 41/2022 came into force on 1 November 2022, making it the earlier of the two Bali designations. The zone is anchored by Bali International Hospital (BIH), operated by PT Pertamina Bina Medika (IHC) with a Mayo Clinic collaboration announced at the December 2021 groundbreaking. The scope of that collaboration — clinical advisory, education, or a broader joint-venture — has not been confirmed in publicly verifiable official documents, so we describe it as announced rather than as a full operational joint venture.
BIH lists 250 beds, centres of excellence in oncology, neurology, cardiology, and orthopaedics, and equipment including 3T MRI, a LINAC, and 3D brachytherapy. Soft opening materials point to April 2025. The zone also incorporates an ethnomedicinal botanical garden (species count figures in circulation are unverified; we omit the number), MSME commercial arcades, and a convention centre and hotel assets associated with the former Grand Inna site.
The Official Figures Conflict — and That Is Worth Knowing
Two sets of official targets circulate for KEK Sanur and they do not match:
- Kemenko Perekonomian releases:
- IDR 10.2 trillion total investment; 43,647 jobs (direct + indirect to 2045); IDR 86 trillion in cumulative forex savings 2022–2045 plus IDR 19.6 trillion in new forex earnings.
- kek.go.id zone profile:
- IDR 6.2 trillion; 18,375 jobs.
We do not know which figure set has been revised and which is stale. What we do know is that both are official, they diverge significantly, and no aggregator site has acknowledged the conflict — they all pick the more impressive number. We flag it here because anyone modelling investment returns against government targets should know this ambiguity exists.
On realization: KEK Sanur has realized roughly IDR 5.37 trillion cumulatively and employed 5,444 people, making it materially more advanced than Kura Kura by the conventional metrics. The zone is operational, not a greenfield promise.
Fiscal Incentives — The Numbers That Drive the Decision
The KEK fiscal framework sits on PMK 237/PMK.010/2020 as amended by PMK 33/PMK.010/2021. The core instrument for qualifying main-activity investors meeting the minimum IDR 100 billion threshold is a corporate income tax (CIT) holiday:
| Investment commitment | CIT holiday duration | Post-holiday tail |
|---|---|---|
| IDR 100 bn – <500 bn | 10 years (100% CIT reduction) | 50% reduction for 2 more years |
| IDR 500 bn – <1 tn | 15 years | 50% reduction for 2 more years |
| ≥ IDR 1 tn | 20 years | 50% reduction for 2 more years |
Source: PMK 237/2020 jo. PMK 33/2021 (KEK regime). Standard post-holiday CIT rate: 22%.
If your planned investment falls below IDR 100 billion, or if your business activity is classified as “supporting” rather than “main” under the zone designation, the applicable instrument shifts to the tax allowance: a 30% deduction of invested capital from taxable income spread over six years (5% per year), accelerated depreciation, a 10% withholding tax on dividends to non-residents (or applicable treaty rate), and a 10-year loss carry-forward.
Indirect Tax and Customs Facilities
Inside a KEK, PPN (VAT) and PPnBM (luxury goods tax) are not collected on imports into the zone, on deliveries from outside the zone into the zone, and on qualifying intangible services and capital goods including land, buildings, and machinery. Import duty, PDRI (border-tax equivalents), excise, and PPh 22 on imports are similarly suspended or exempted. These facilities function much like a bonded zone — duty exposure crystallizes only when goods exit the KEK into the domestic customs area.
Regional government tax reductions of 50–100% on local levies including BPHTB and PBB are available under PP 40/2021 Article 100, subject to the relevant Perda (regional bylaw) in Denpasar.
The Pillar Two Caveat
Effective 1 January 2025 (PMK 136/2024), Indonesia introduced a 15% global minimum tax domestic top-up for multinational enterprise groups with annual consolidated revenue exceeding EUR 750 million. If your group meets that threshold, a tax holiday that brings your effective tax rate below 15% triggers the top-up, partially or fully erasing the holiday value. Indonesia has introduced a qualified refundable tax credit (QRTC) as a GMT-compatible alternative. The KEK holiday rules remain formally in force; the economic benefit depends on your group’s Pillar Two exposure. Any MNE modelling a KEK entry should run this calculation with their tax adviser before committing to a zone setup.
Non-Fiscal Incentives: Land Rights, Immigration, and Licensing
Land Rights
The most frequently misquoted number in Bali SEZ materials is “80-year land rights.” Under the Cipta Kerja land regime (PP 18/2021), HGB (Right to Build) cycles are structured as 30 + 20 + 30 = a maximum of 80 years total. This is a cycle structure, not a single upfront 80-year grant. That single-grant framing applies to IKN under different regulations (PP 12/2023 as amended by PP 29/2024), not to KEK. Foreigners cannot hold Hak Milik (freehold) anywhere in Indonesia, including inside KEKs. The practical route for a foreign investor inside a KEK is a PT PMA holding HGB, or Hak Pakai for qualifying individuals. Understanding this distinction matters before you negotiate a land deal with the BUPP.
Immigration
The KEK framework provides streamlined processing of immigration documents through the one-stop Administrator KEK, which operates as a PTSP (integrated licensing service point) via OSS-RBA. Investor KITAS and work KITAS (through standard RPTKA approval) are the primary instruments. The Second Home Visa (Permenkumham 22/2022, available in 5- or 10-year variants) is a national instrument, not a KEK-specific benefit, though it is routinely presented as one in agency marketing. VoA extendability of up to five times applies in the KEK context as well. KEK Sanur carries additional immigration facilitation for foreign medical professionals and for medical tourists and their families — the exact terms are set through the Administrator KEK, not through published rates we can verify independently.
Licensing
The Administrator KEK issues licenses through OSS-RBA. Foreign-ownership caps on certain business lines can be relaxed relative to the standard Positive Investment List (Perpres 10/2021) inside a KEK, but this is sector- and KBLI-specific. Do not assume blanket 100% foreign ownership for all activities in either zone — verify your specific KBLI against the Administrator KEK’s current rules before structuring your entity.
How to Become a Pelaku Usaha: The Realistic Process
The steps below are based on the PP 40/2021 framework and OSS-RBA practice. Timelines are realistic estimates, not guarantees; bureaucratic bottlenecks at any stage can extend them.
- PT PMA incorporation — minimum investment plan of IDR 10 billion per five-digit KBLI (excl. land and buildings), paid-up IDR 10 billion in practice. Allow 2–4 weeks.
- NIB via OSS-RBA selecting the KEK location code — typically days once the company is incorporated and directors are registered.
- LOI and screening with Administrator KEK — the Administrator reviews your sector fit, investment scale, and compliance history. Allow 2–6 weeks; complex projects take longer.
- Land or space agreement with the BUPP — commercial negotiation with BTID (Kura Kura) or the Sanur BUPP (health cluster). Term sheet: 4–12 weeks. Full agreement: 1–3 months. Lease and land pricing are not published; all terms are negotiated directly with the BUPP and are premium to surrounding Denpasar benchmarks.
- Fiscal facility application via OSS — must be filed before commercial operations commence. Ministry of Finance processing: 1–3 months, longer for complex structures or if queries arise.
- Customs registration and IT inventory system — required if you intend to use the import-duty and VAT suspension facilities. Allow 1–3 months for system setup and approval.
End-to-end, a fully facility-enabled KEK operation realistically requires 6 to 12 months from entity formation to commercial readiness. Basic PT PMA plus NIB moves much faster, but the fiscal facilities — the main economic argument for entering a KEK rather than a normal Bali location — come only at step five. Build that into your timeline and capital plan.
Professional fees for a medium-complexity KEK entry — legal, tax advisory, licensing, BUPP negotiation support — run in a broad range of IDR 100–500 million for credible providers. PT PMA incorporation itself typically costs IDR 20–50 million in notary and government fees.
Candid Risk Assessment
Independent intelligence means publishing the risk layer as explicitly as the incentive layer.
KEK Kura Kura Bali
The 30-year buildout horizon runs through multiple tourism cycles. COVID-19 showed how sharply Bali’s visitor economy can contract. Realized investment of IDR 1.62 trillion against a multi-decade IDR 89.9–104 trillion target means the zone’s promise is still principally in the future. Serangan Island’s 1990s reclamation history generates ongoing environmental and community scrutiny — erosion patterns, fisheries access, and coastal ecology issues that surface periodically in public discourse. The Bali IFC vision (Prabowo’s 2026 announcement, a “0% proposed tax rate” for a financial centre, GBFA backing) has attracted significant attention but, as of mid-2026, has no enacted regulatory framework or financial authority behind it. There is a meaningful difference between a presidential statement and a functioning financial centre. The hybrid luxury-retail, education, creative-industry, and financial-centre positioning is ambitious; execution across all verticals simultaneously carries real resource and focus risk.
KEK Sanur
Medical tourism in Southeast Asia is intensely competitive. Singapore, Malaysia, and Thailand have decades of head-start in foreign-patient volume, international accreditation, and specialist depth. The target of capturing 4–8% of the 123,000–240,000 Indonesians who currently seek treatment abroad by 2030 is plausible in principle but depends on pricing, clinical quality signalling, and specialist availability — all three of which take years to establish credibly. Foreign-doctor licensing in Indonesia carries procedural friction and professional-association sensitivities. BPJS (national health insurance) reimbursement rates are structurally below private-market rates, limiting the zone’s addressable BPJS patient volume. The two conflicting official investment-target sets (IDR 6.2 trillion vs IDR 10.2 trillion) are not a minor discrepancy — they represent a near-40% difference in the stated ambition of the project. Any operator modelling zone entry on the basis of government target timelines should verify which figure set is current at ekon.go.id and kek.go.id before building a business case.
Cross-Zone Policy Risk
Academic analysis (VoxDev, 2023) of the Indonesian SEZ program as a whole found minimal aggregate impact on regional growth and welfare, with weak spillover effects — particularly in zones sited for political reasons in remote locations. The Bali zones have genuine demand-side tailwinds that distinguish them from lower-performing zones, but the structural critique is worth reading. KEK status can be revoked: PP 40/2021 gives the Dewan Nasional KEK evaluation authority, and several zones nationally have been flagged as underperforming. Neither Bali zone is currently at revocation risk in our assessment, but the legal mechanism exists and should be understood. Separately, Pillar Two GMT (from 1 January 2025) structurally reduces the tax-holiday value for in-scope MNE groups — this is not a Bali-specific risk but a program-wide one.
Bali SEZ Map and Location Context
Both zones sit in or adjacent to Kota Denpasar, roughly 15–20 minutes from Ngurah Rai International Airport in light traffic. KEK Kura Kura Bali occupies the entirety of Serangan Island — a distinct land mass connected to southern Denpasar by a causeway, easily visible on any satellite map. KEK Sanur occupies the Grand Inna Bali Beach site on the Sanur beachfront, on Denpasar’s eastern coast. Neither zone is in Ubud, Seminyak, or Canggu; both are within Kota Denpasar’s administrative boundary. For logistics-heavy operations, Kura Kura’s Serangan location offers some separation from central Denpasar traffic but limited road access — the single causeway is a real constraint at peak times.
Who Each Zone Is Actually For
KEK Kura Kura Bali suits: MICE operators, luxury retail anchors (Mitsubishi Estate’s Grand Outlet signals this tier), international education providers, creative-economy studios targeting the export market, and — if and when the IFC framework is enacted — financial-services firms. The minimum investment threshold for the main tax holiday (IDR 100 billion, roughly USD 6 million at current rates) filters out early-stage or small-scale operators.
KEK Sanur suits: hospital and specialist-clinic operators, medical-device distributors and manufacturers, health-tech companies requiring a clinical environment, wellness operators positioned explicitly within the health-tourism framing, and hospitality groups targeting medical-tourist accommodation adjacent to BIH. The foreign-health-worker licensing facilitation and customs treatment for medical equipment are zone-specific advantages not available at standard Bali business locations.
Neither zone suits: standard retail, conventional Bali hospitality outside the health-tourism anchor, general-purpose tech startups that do not need the creative-industry framing, or any business whose investment scale falls well below IDR 100 billion and for which the compliance overhead of KEK tenancy (KPI reporting, IT inventory systems, OSS maintenance) would cost more than the tax savings. That trade-off analysis — when the KEK does not pay — is the question most agency guides skip. We cover it in detail in our KEK vs Non-KEK comparison.
Frequently Asked Questions
How many special economic zones are in Bali?
Exactly two, as of mid-2026: KEK Kura Kura Bali (498 ha, Serangan Island, PP 23/2023) and KEK Sanur (41.26 ha, Denpasar Selatan, PP 41/2022). There is no third Bali SEZ designation in force. Nationally, Indonesia operates roughly two dozen KEKs under UU 39/2009 as amended by UU Cipta Kerja 6/2023.
Who runs the Bali SEZs — government or private developers?
Each zone has a designated Badan Usaha Pembangun dan Pengelola (BUPP) — a developer-manager company appointed under the zone’s PP. For KEK Kura Kura Bali, the BUPP is PT Bali Turtle Island Development (BTID). For KEK Sanur, the hospitality/estate side is tied to Hotel Indonesia Natour within the InJourney group, and the health cluster to PT Pertamina Bina Medika (IHC). The Administrator KEK is the one-stop licensing body present in each zone, operating under the Dewan Nasional KEK (National SEZ Council) chaired by the Coordinating Minister for Economic Affairs. Day-to-day zone management is handled by the BUPP, not a government ministry.
Can foreigners invest in a Bali special economic zone?
Yes, through a PT PMA (foreign-owned limited liability company) incorporated under Indonesian law. The PT PMA holds the HGB land right inside the zone. Minimum investment plan is IDR 10 billion per five-digit KBLI (excl. land and buildings). Foreign-ownership caps for certain business lines can be relaxed relative to the standard Positive Investment List inside a KEK, but this is sector-specific — verify your KBLI with the Administrator KEK. Foreigners cannot hold Hak Milik (freehold) anywhere in Indonesia, including inside a KEK.
What is the tax holiday for Bali SEZ investors?
For qualifying main-activity investors meeting a minimum IDR 100 billion investment: 10 years at 100% CIT reduction (IDR 100–499 billion), 15 years (IDR 500 billion–999 billion), or 20 years (IDR 1 trillion or above), followed by a 50% CIT reduction for two more years. The standard post-holiday CIT rate is 22%. Multinational groups with annual consolidated revenue exceeding EUR 750 million may face a Pillar Two global minimum tax top-up (PMK 136/2024, effective 1 January 2025) that erodes or eliminates the effective holiday value — model this before committing.
Where exactly is the Bali SEZ located?
KEK Kura Kura Bali covers all 498 ha of Serangan Island in Kecamatan Denpasar Selatan — connected to southern Denpasar by a single causeway, approximately 15–20 minutes from Ngurah Rai International Airport in normal traffic. KEK Sanur occupies 41.26 ha on the Sanur beachfront in Denpasar Selatan, the former site of the Grand Inna Bali Beach hotel. Both zones are within Kota Denpasar’s administrative boundary, not in the Badung regency areas (Kuta, Seminyak, Canggu) where most international tourism infrastructure sits.
Where the Zones Sit
Both KEKs sit on Bali’s southeast coast, minutes apart across Benoa Bay.