Over the past few weeks, talk of a possible ban on Online Travel Agencies (OTAs) has sparked plenty of confusion across Indonesia’s tourism sector. To clear things up, the Ministry of Tourism of Indonesia, through a press release on 8 December 2025, confirms that there is no plan to shut down OTAs.
What is changing, however, is how the government handles unlicensed accommodation listings on these platforms. Rather than targeting the platforms themselves, the focus is on improving compliance, ensuring a level playing field for licensed businesses, and making sure travellers know exactly what they’re booking.
The Press Release explains that the government are putting efforts to collaborate with OTAs (Online Travel Agency), e.g. Bookingdotcom, airbnb, traveloka, etc, to implement the control and rules for the short term business license application.
It has started now that they start directing their hosts/merchants in app to apply for the license as part of the requirements to list their property.
Based on the press release, they target for all hosts/merchants has obtained their license on March 31 2026. Merchants that fail to comply will be delisted from OTA platforms.
As for the Circular Letter, it is explaining on the list of licences categorized as “tourism accommodation/short term rental”, the appeal to the regent, governors, and all authority to implement control over the short term business regulations.
They target socialization, data collection on businesses that do not have license, and implementing administrative sanctions to those that do not have which sanctions include warning letters, temporarily halt business operations, and completely stop the business of the accommodation.
The list of short term businesses that will be affected through this policy includes Villa, Pondok Wisata, Apartment Hotel, starred hotel, etc. Which all business allows you to do Short Term Rental.
As an investor and business owner, below are the to do list to ensure compliance towards the newly updated requirement for short term renting:
- Understand the context and be aware of the requirements for short term business license in Indonesia. This activity involves understanding what’s needed legally, and understanding the regulations of the area where your investment is located since regulations on permit such as groundwater license (ABT), Local tax card (NPWPD), are different by Regency/even subdistrict;
- The legal essentials to have equipped for a Villa to have now are: IMB/PBG-SLF, NIB OSS license (for tourism accommodation business, can be villa, Pondok Wisata, or others), Groundwater Tax License (ABT NPWPD), NPWPD (local tax card). This will ensure a smooth listing of your properties in OTA.
- Applying for these permits takes different times, better to start as soon as possible to apply for these permits.
Shall you have questions on action plan and assistance to comply with the ever-changing rules of real estate business in Indonesia, please don’t hesitate to schedule a meeting with our consultants at Bali Exception.
