The Government of Indonesia, through the Ministry of Tourism of the Republic of Indonesia, has officially issued a regulatory directive requiring all accommodation businesses listed on Online Travel Agent (OTA) platforms to obtain and verify complete business licenses.
This applies to properties listed on platforms such as Booking.com, Airbnb, and Agoda.
The official deadline is:
31 March 2026
After this date, properties that fail to comply may no longer be displayed on OTA platforms.
This article explains in detail what is changing, who is affected, what compliance requires, and what the legal implications are for foreign investors and property owners.
Why Is This Policy Being Implemented?
This enforcement is based on Indonesia’s Risk-Based Business Licensing system under:
- Government Regulation No. 28 of 2025
- Ministerial Regulation of Tourism No. 6 of 2025
Under this framework:
Every business activity must obtain proper licensing according to its risk classification and KBLI (Indonesian Business Classification Code).
Accommodation businesses (villas, hotels, guesthouses, homestays) fall into regulated categories requiring:
- A valid NIB (Business Identification Number)
- Appropriate KBLI classification
- Fulfillment of tourism business standards
- Registration and verification through the Ministry of Tourism system
Previously, many properties operated with incomplete licensing structures, particularly in major tourist destinations.
The government is now shifting enforcement to the most strategic control point: digital market access via OTAs.
Who Is Affected?
This regulation applies to:
- Villas
- Hotels
- Guesthouses
- Homestays
- Serviced apartments
- Any short-term rental accommodation
It applies nationwide — not only in Bali.
It is important to clarify:
This policy does not differentiate between:
- Indonesian citizens (WNI)
- Foreign nationals (WNA)
- Local companies
- Foreign-owned companies (PT PMA)
What is regulated is the business activity, not the nationality of the owner.
If the property is commercially listed on an OTA, it must comply.
What Are the Compliance Requirements?
To remain visible on OTAs after 31 March 2026, properties must:
1. Obtain a Valid NIB (Business Identification Number)
Issued through the OSS (Online Single Submission) system.
2. Register Under the Correct KBLI Code
Typically under:
- Short-term accommodation services
- Hotel operations
- Tourist villas
- Lodging services
Incorrect KBLI classifications (e.g., trading or consulting) will not qualify.
3. Fulfill Tourism Business Standards
Including completion of risk-based commitments depending on the business category.
4. Complete the Accommodation Business Registration Form
This additional registration forms part of the national verification system.
What Is the “Registered and Licensed” Label?
Properties that:
- Have a valid NIB
- Have the correct KBLI
- Have completed registration
- Have passed verification
Will receive the official designation:
“Registered and Licensed”
This label serves as:
- A legal compliance badge
- Official registration confirmation
- Verified status under government oversight
Functionally, this operates as a whitelist system.
Properties without this status risk being removed from OTA listings.
What Happens If a Property Has No NIB by the Deadline?
If by 31 March 2026 a property:
- Does not have a valid NIB
- Has incorrect or incomplete licensing
- Has not completed verification
The consequence is not immediate physical closure.
However:
The property may no longer be displayed on OTA platforms.
From a business perspective, this is a major operational risk.
In many tourism areas, 60–90% of bookings originate from OTAs. Losing OTA access may significantly impact revenue flow.
Is This a Tax Enforcement Measure?
Officially, the focus is business licensing compliance.
However, once a business is properly registered with a valid NIB and KBLI, it becomes integrated within Indonesia’s tax and reporting systems.
This increases:
- Revenue transparency
- Tax compliance monitoring
- Regulatory visibility
While not explicitly a tax policy, the system enhances fiscal oversight.
Is Obtaining an NIB Alone Sufficient?
Not necessarily.
An NIB is the foundation.
However, accommodation businesses typically also require:
- Fulfillment of tourism business standards
- Proper zoning compliance
- Completion of OSS commitments
Common issues include:
- Having an NIB but incorrect KBLI
- Correct KBLI but unfulfilled commitments
- Having a company established but incomplete tourism licensing
Verification will assess the entire licensing structure — not merely the existence of an NIB.
Can a Property Operate Under Personal Ownership Without a Company?
If a property is rented commercially on a continuous basis, it is classified as a business activity.
Under the risk-based licensing system, business activities require registration and licensing.
Therefore, informal short-term rental practices without proper business registration will face increasing regulatory pressure.
Industry Impact
This policy will likely result in:
- Market consolidation
- Removal of informal operators
- Increased compliance costs
- Higher regulatory standards
However, long-term effects may include:
- Greater tourist confidence
- Stronger legal certainty
- A more stable and structured accommodation market
What Should Property Owners and Foreign Investors Do Now?
If you are:
- A villa owner
- A foreign investor
- A hotel operator
- A short-term rental host
You should immediately:
- Conduct a licensing audit
- Verify KBLI accuracy
- Confirm NIB validity
- Ensure OSS commitments are fulfilled
- Complete registration before the deadline
Early action reduces operational risk and avoids disruption.
Conclusion
31 March 2026 represents a major structural shift in Indonesia’s accommodation industry.
The government’s approach is no longer focused on physical inspections alone.
Instead, enforcement is implemented through:
Control of digital market access.
Compliant properties remain visible.
Non-compliant properties risk disappearing from OTA platforms.
For serious investors and long-term operators, compliance is no longer optional — it is a strategic necessity.
If your property is listed on Airbnb or Booking.com, compliance is no longer optional.
We assist villa owners, guesthouse operators, and foreign investors in:
- NIB & OSS registration
- Correct KBLI structuring
- Tourism business licensing
- PT PMA setup & restructuring
