Indonesia to tighten licensing for unregistered hotels and villas in Bali and Jakarta
Indonesia implements stricter licensing requirements for unauthorized hotels and villas in Bali and Jakarta
In response to mapping conducted by the Indonesian government that shows thousands of properties were operating on OTAs but not having a business license, the Indonesian Ministry of Tourism has brought forth stricter guidelines on accommodation licensing.
The policy provides clearer business standards and mechanisms of control and administrative penalties within the country’s risk-based licencing regime. The policy makes it mandatory for all accommodation facilities to have operating licenses and business classification by March 31st, 2026.
The regulation of the hospitality sector, Indonesian Tourism Minister Widiyanti Putri Wardhana added, did not aim to limit the development of online platforms.
“Srstus-usaha atau pengijazahan bukan hanya merupakan tugas administratif. Semua aspek berhubungan dengan aspek keselamatan, profesi, dan juga ketimberan pajak, yang berkontribusi untuk pertumbuhan turismo yang berkelanjutan,” ungkap
Data collected by the ministry in October 2025 showed that there were more than 29,000 non-hotel accommodations registered in OTA for Bali, whereas only 14,500 had been registered in the national register of businesses. In Jakarta, there were about 5,000 non-hotel accommodations being promoted through OTAs, and only 1,500 or 28 percent were licensed.
