The electronic structure and magnetism of Ir 5d5 states in nonmetallic, weakly ferromagnetic BaIrO3 are probed with x-ray absorption techniques. Contrary to expectation, the Ir 5d orbital moment is found to be ~1.5 times larger than the spin moment. This unusual, atomiclike nature of the 5d moment is driven by a strong spin-orbit interaction in heavy Ir ions, as confirmed by the nonstatistical large branching ratio at Ir L(2,3) absorption edges. As a consequence, orbital interactions cannot be neglected when addressing the nature of magnetic ordering in BaIrO3. The local moment behavior persists even as the metallic-paramagnetic phase boundary is approached with Sr doping or applied pressure.