Indonesia will tighten licensing regulations for unregistered villas and hotels in Jakarta and Bali. Following a government mapping exercise that found thousands of lodgings listed on online travel agencies (OTAs), particularly in Bali, were operating without the necessary business licenses, the Indonesian government's Ministry of Tourism (MoT) issued a new regulation to strengthen the licensing of lodgings. By March 31, 2026, all lodging establishments must have the appropriate business classifications and operating licenses in accordance with the new rule. This is a component of the nation's risk-based licensing scheme. The new rule, according to Indonesia's Minister of Tourism Widiyanti Putri Wardhana, is meant to bring order back to the lodging industry rather than restrict the growth of online platforms.
"Licensing is more than just an administrative process. During the ministry's year-end press conference in Jakarta, she stated that it directly affects safety, professionalism, and tax payments—all of which are necessary for the tourism industry to grow sustainably. Only 14,500 non-hotel accommodations were listed in Bali's business registry, compared to over 29,000 on OTA platforms, according to data compiled by the MoT in October 2025. Only 1,500, or 28%, of the approximately 5,000 non-hotel accommodations in Jakarta that were listed on internet sites had licenses. Accommodations that don't have licenses by March 2026 risk having their listings removed from OTA platforms under the new regulation. To ensure a seamless transition, the Ministry has collaborated with major OTAs and regional administrations. In December 2025, official notices were sent to businesses offering guidance for merchant partners using the Online Single Submission (OSS) licensing system. The government has put in place support initiatives to help with compliance in addition to enforcement.
