The Indonesian government is implementing new regulations for short-term rental properties, including those listed on platforms like Airbnb. The move requires all accommodations listed on online travel agencies to possess the necessary business licenses by March 31.
Addressing Tax Revenue and Fair Competition
Minister of Tourism Widiyanti Putri Wardhana announced the regulations on her Instagram account. She stated the initiative aims to ensure the continued growth of Indonesia’s tourism sector, prevent tax evasion, and create a level playing field for all businesses operating within the tourism industry.
The government expects all operators to start processing the required permits. This action follows a proposal from the governor of Bali to temporarily suspend all short-term rentals.
Tourism Growth and Economic Context
Indonesia, Southeast Asia’s largest economy, saw a surge in foreign visitors in 2025, welcoming 15.39 million tourists – exceeding its initial target of 14-15 million arrivals. The country anticipates receiving up to 17 million foreign visitors in 2026, an 11% year-over-year increase.
The new regulations seek to ensure Indonesia’s tourism sector continues to grow and provide a fair environment for all business operators.
Frequently Asked Questions
What is the deadline for obtaining business licenses?
All accommodations listed on online travel agencies must have necessary business licenses by March 31.
Why is the Indonesian government implementing these regulations?
The move seeks to ensure Indonesia’s tourism sector keeps growing, to prevent tax evasion, and to provide a fair environment for all business operators in the tourism sector.
What prompted these new regulations?
The new regulation came after the governor of Indonesian resort island of Bali proposed to halt all short-term rentals including those listed on Airbnb, as the provincial government was losing regional tax revenue.
Will these new regulations impact the availability or cost of short-term rentals in Indonesia remains to be seen, but some operators may choose to discontinue offering their properties if they are unable or unwilling to comply with the new requirements.
