Bali is witnessing a rapid transformation in its recreational landscape, with new facilities appearing from the bustling streets of Canggu to the cliffs of Uluwatu. However, riding this wave requires more than just enthusiasm; it demands a deep understanding of the regulatory environment surrounding the sports industry.
Investors often underestimate the complexities of zoning and licensing in Indonesia, assuming a simple lease is enough to start construction on a court.
The growth is real, but so are the risks of operating a business without proper permits or in protected green zones. Many foreigners rush into projects only to face shutdowns due to non-compliance with the latest spatial planning regulations.
Securing your investment means navigating the intricate bureaucracy of local administration and the Online Single Submission (OSS) system to ensure the long-term viability of your PT PMA.
This guide provides the essential roadmap for establishing a legitimate and profitable facility. We break down the legal frameworks, tax obligations, and strategic insights needed to master the Bali Padel Sports market in 2026, ensuring your venture is built on a solid foundation rather than unstable ground.
Table of Contents
- The Explosive Growth of Padel in Indonesia
- Decoding the Business Models for Success
- Essential Legal Structures and KBLI Setup
- The Zoning Trap: Protecting Your Capital
- Case Study: From Zoning Nightmare to Compliance
- Securing Building Permits and Safety Licenses
- Navigating Taxes and Local Levies
- Strategic Positioning for the Next Decade
- FAQs about Padel Investment
The Explosive Growth of Padel in Indonesia
The trajectory of the racket game in Indonesia has been rapid and significant. Industry reports for 2025 highlight a staggering 295% increase in clubs nationwide, positioning the archipelago as the fastest-growing market in ASEAN.
While the sports scene started with a modest presence, projections now point towards over 6,700 courts by 2032. This surge is fueled by a combination of tourism demand and a shifting local lifestyle, making Bali Padel Sports a central pillar of this expansion.
For investors, the numbers tell a compelling story of business opportunity. With over 20,000 active players and a daily average of nearly four new facilities being built across the country, the ecosystem is maturing rapidly. However, this growth also brings increased scrutiny from regulators.
To succeed in the competitive landscape of the Bali market, operators must move beyond casual setups and align with national standards set by bodies like the Indonesia Padel Association (PPSI).
Decoding the Business Models for Success
Building a successful court requires a clear financial strategy. Current market analysis estimates the construction cost per unit in Indonesia to range between IDR 600 million and 1.2 billion, depending on whether you opt for indoor or outdoor structures and imported materials.
The profitability of this business venture often hinges on selecting the right format, whether it is a standalone club, a resort amenity, or a hybrid wellness hub.
Standalone clubs rely heavily on dynamic court rentals, coaching clinics, and tournaments to drive revenue. In contrast, hybrid models that integrate gyms, co-working spaces, and health cafés tend to achieve a higher average revenue per user (ARPU).
Understanding these levers is crucial, as the density of Bali Padel Sports facilities in areas like Berawa means that differentiation through amenities and community building is now key to survival.
Essential Legal Structures and KBLI Setup
Navigating the legal landscape is the first hurdle for any foreign investor. The most suitable classification for these activities is KBLI 93114, which covers court sports like tennis and badminton.
Under Indonesia’s risk-based licensing system, this is generally categorized as low-risk, allowing the Business Identification Number (NIB) to serve as the primary commercial license.
However, treating a padel business as “just a hobby” without the proper corporate structure is a major risk.
For foreign entrepreneurs, the standard vehicle is a PT PMA (Foreign Owned Company). This structure allows you to legally operate sports facilities, retail shops, and F&B outlets under one roof, provided you meet the minimum investment thresholds.
Attempting to bypass this through local nominees not only jeopardizes your control but also exposes your PT PMA venture to significant legal vulnerabilities if disputes arise.
The Zoning Trap: Protecting Your Capital
The most significant threat to any new development in Bali is zoning non-compliance. Land must be situated in a zone designated for tourism or commercial use, strictly avoiding the “Green Zone” or Sustainable Food Agricultural Land (LP2B).
Recent crackdowns in Tibubeneng have seen facilities facing suspension threats for operating on agricultural land without the correct permits. This serves as a stark warning for anyone entering the Bali Padel Sports sector.
Due diligence is non-negotiable. Before signing any lease, investors must verify the land certificate and check the detailed spatial plan (RDTR). A picturesque view of rice fields often implies a protected zone where commercial court construction is illegal.
Ensuring your project is on the right side of zoning laws is the only way to prevent demolition orders or operational bans down the line.
Case Study: From Zoning Nightmare to Compliance
Benjamin, a 29-year-old remote entrepreneur from Montreal, arrived in Bali in early 2025 ready to pivot from crypto to bricks-and-mortar. He identified a gap in the market in the Pererenan area for a high-end social club.
A local broker presented him with a “dream plot”—20 are of land bordering a river, priced significantly below market value. The contract was on his desk, and he was ready to sign.
Just before transferring the deposit, Benjamin decided to run a final check. He had heard rumors of clampdowns on riverbank builds. He engaged Balivisa.co to perform a quick land verification.
The results were alarming: the land was not only zoned as LP2B (strictly agricultural) but also encroached on the river setback line (sempadan sungai). Building a business there would have been illegal, and obtaining a PBG (building permit) would have been impossible.
Benjamin immediately pulled out of the deal, saving himself over $150,000 in sunk costs. He refocused his search and secured a plot 800 meters away in a verified yellow (residential/commercial) zone.
While the upfront lease cost was higher, the peace of mind was worth it. Six months later, while the “dream plot” he rejected remained an empty field under government seal, Benjamin’s club was fully licensed as a PT PMA and hosting its first Bali Padel Sports tournament.
Securing Building Permits and Safety Licenses
Once the land and company are secured, the focus shifts to physical compliance. Every permanent structure requires a Building Approval (PBG) followed by a Certificate of Proper Function (SLF) upon completion.
These documents prove that your PT PMA facility meets safety, environmental, and technical standards. Operating without them is a common oversight that authorities are increasingly penalizing.
The process involves submitting technical drawings signed by certified architects and engineers. For a court complex, this includes structural integrity checks for enclosures and proper drainage systems to handle the rainy season.
Furthermore, environmental documentation like the SPPL is mandatory to show how you will manage waste and noise, ensuring your business remains a good neighbor in Bali’s dense mixed-use villages.
Navigating Taxes and Local Levies
Profitability calculations must account for the specific tax landscape of the recreation sector. In many regencies, court rentals are subject to a Specific Goods and Services Tax (PBJT), often set at 10% under entertainment and sports categories.
This is distinct from VAT and must be collected from customers. Ignoring this can lead to severe audits for your business entity.
Additionally, if your club includes a cafe or bar, you will be dealing with separate restaurant taxes. Smart operators integrate these costs into their pricing strategy from day one.
Being transparent about tax obligations protects your PT PMA from unexpected liabilities and builds trust with local tax offices, which is invaluable for long-term operations.
Strategic Positioning for the Next Decade
To ensure longevity beyond the initial hype, strategic positioning is vital. The market is moving towards professionalization, with governing bodies like the PBPI driving coaching standards and tournament structures.
Aligning your Bali Padel Sports venue with these official ecosystems grants you access to national ranking events and a broader community of dedicated players.
Future-proofing also means avoiding over-saturated micro-markets. While Canggu is booming, emerging areas offer the potential for first-mover advantage.
By combining a compliant legal structure with a community-focused business model, you can build a sports brand that thrives well into the 2030s, capitalizing on the transition from a niche trend to a mainstream staple.
FAQs about Padel Investment
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Can a foreigner own a padel club in Bali?
Yes, foreigners can own a club through a PT PMA (Foreign Owned Company). This structure allows for 100% foreign ownership in the sports facility sector, giving you full control over your investment.
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What is the minimum investment for a PT PMA?
The minimum investment requirement is IDR 10 billion (excluding land and buildings) per business classification (KBLI). This capital must be realized over time, ensuring your PT PMA contributes to the local economy.
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Do I need a specific license to sell alcohol at my club?
Yes. If your facility includes a bar, you need a separate business classification for serving alcohol and a specific alcohol license (SKPL-A/B/C) depending on the beverages sold. This is separate from your main court permit.
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Can I build a court on agricultural land?
Generally, no. Building commercial sports facilities on LP2B (protected agricultural land) is prohibited. You must find land with tourism or commercial zoning to legally operate a Bali court.
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How long does it take to get a PBG building permit?
The timeline varies but typically takes 3 to 6 months. It requires approved architectural drawings and compliance with local spatial planning. Starting court construction without it puts your Bali Padel Sports project at risk of being halted.
