Denpasar, Bali, July 23 -- 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 loophol...