Tighter Guidelines for Unlicensed Tourism Accommodations in Indonesia
All hotels, villas, and accommodation short leases must acquire an official operating licence from the Indonesian government before 31 March 2026, failing which these accommodations will be removed from their online travel agency (OTA) platforms, the Ministry of Tourism has declared. The guidelines are expected to enhance safety, ensure tax compliance and generate fair competition by bringing all tourism accommodations in line with the laws of the nation.
Thousands of Properties Listed on OTAs Have No Government License
Following a government-wide study conducted at the end of 2025, the Ministry has found a major difference between the number of accommodation properties listed by the OTAs and those that have an official license.In Bali, there have been over 29,000 accommodation listings other than those of hotels available online, but only about 14,500 of them have been legally registered. In Jakarta, there have been around 5,000 listings online, but just 1,500 of them, accounting for 28% of the total number of listings, have business licenses.According to authorities, these non-registered accommodation properties create additional barriers to implementing regulations regarding safety and service standards, as well as skewing tourism data and giving unfair competition to the registered hotels.
Compliance Deadline by March 2026
As per the new policy, the accommodation operators have to register their property on Indonesia's OSS licensing system before March 31, 2026. Properties that are not able to register will get removed from popular OTA websites.The Ministry of Tourism is coordinating with regional governments and OTAs to inform the operators about the new regulations and facilitate the registration process.
Regulations, Not Prohibitions, to Be Emphasized
The licensing program has been devised as one of the aspects of Indonesia’s policy to integrate villas and vacation rental properties into the country’s legal tourism market.Despite some discussions of more prohibitive measures like banning certain vacation rental platforms, officials have noted that their priority remains regulation and compliance rather than prohibition. While the industry representatives appreciate the clarity introduced by the regulations, they note that implementation of these rules in all provinces will be necessary. In addition, hotel associations have requested detailed guidance regarding the licensing and classification of villas.
Effect of the New Licensing Laws on the Tourism Sector
This new licensing law will have an effect on the hotel industry in Indonesia, not only in Bali and Jakarta, but also in the whole country. The regulations are expected to boost tax collection, enhance consumer rights, and ensure fair competition among the licensed hotels and the short-term accommodations.As we approach the deadline of March 2026, hoteliers, villa operators, and the OTA sites are gearing up for changes that might greatly impact their online business.The laws are just part of a trend being witnessed internationally, where the government requires short-term accommodation providers to fulfill the same licensing, safety, and taxation standards as traditional hotels.
