As per standard Postgres documentation
As with the plain file-system-backup technique, this method can only support restoration of an entire database cluster, not a subset.
From this, I understood that it is not possible to setup PITR for individual databases in a cluster (a.k.a. a database instance holding multiple databases). If my understanding is incorrect, probably the next part of the question is not relevant, but if not, here it is:
I still do not get the problem in setting this up theoretically as each database is generating its own WAL archive.
The problem here is: I am in need of setting up multiple Postgres clusters and somehow I have only 2 RHEL 7.6 machines to handle this. I am trying to reduce the number of clusters on these 2 machines to only 2. I am planning to create multiple database rather than multiple instances to handle customer applications. But that means that I have to sacrifice PITS, as PITR only can be performed on the instance/cluster level and not on the database level (as per the official documentation).
Could someone please help clarifying my misunderstanding.