Bali Homestay Operators Seek More Time to Meet Indonesia’s Licensing Rules
Indonesia’s accommodation licensing requirements for short-term rentals are drawing calls for more time from Bali’s community homestay operators, amid ongoing technical and procedural challenges. Discussions in Jakarta between the Ministry of Tourism and industry representatives highlighted broad support for compliance, alongside concerns that the current timeline may be difficult for small operators to meet. The issue has implications for local livelihoods, regulatory coordination, and confidence in Indonesia’s tourism sector.
Industry support for tourism compliance goals
Representatives from the Asia Travel Technology Industry Association (ATTIA), which includes major online travel platforms operating in Indonesia, met officials from the Ministry of Tourism in Jakarta to review the implementation of accommodation licensing rules. The requirement obliges all short-term rental and accommodation providers to hold the appropriate business licences.
“Our members are committed to working constructively with the Ministry of Tourism, provincial authorities, and local governments to ensure smooth and effective implementation. We support feasible and proportionate regulations for operators to help drive Indonesia’s broader tourism objectives,” — Mark Chan, Managing Director, Asia Travel Technology Industry Association
ATTIA also acknowledged the government’s engagement with industry stakeholders, noting that recent technical discussions have helped clarify policy intent, even as practical issues remain unresolved.
Technical hurdles slowing registration
According to feedback shared during the Jakarta meeting, many accommodation providers are actively attempting to comply with the new rules. However, the pace of registration has been affected by evolving requirements within the Online Single Submission system, uncertainty over updated KBLI classifications, and questions about how responsibilities are divided between national and regional authorities.
Platforms and government agencies are also working to align on methods for verifying host registration data that are accurate, secure, and scalable. These coordination challenges mirror wider digital governance efforts in Indonesia, such as recent initiatives on biometric SIM registration and broader approaches to regulatory compliance in online ecosystems.
Homestay owners highlight local impacts
Local operators say the current deadline leaves limited room for small businesses to complete complex administrative processes. Kadek Adi Putra, a homestay owner from Banjar Lungsiakan in Ubud who manages around 20 properties for local families, described the pressures facing community-based operators.
“Many homestay owners genuinely want to comply with licensing and tax requirements. However, the 31 March deadline gives limited time for small operators to navigate processes that can sometimes be complex and involve different levels of government. With clearer guidance and sufficient time, most homestay owners would be able to complete the process while continuing to support local livelihoods and communities,” — Kadek Adi Putra, Homestay Owner, Banjar Lungsiakan, Ubud
He noted that homestays play a distinct role in Bali’s tourism model, enabling families to earn income while maintaining cultural and community responsibilities. Beyond individual households, the sector supports drivers, cleaners, freelance spa therapists, and other local service providers.
Homestays also offer visitors a different experience from hotels by providing access to Balinese family compounds and everyday local life, with online platforms acting as a bridge between communities and international travellers.
Timeline and coordination seen as decisive
ATTIA emphasised that the effectiveness of the licensing policy will depend on a realistic implementation timeline and strong coordination across levels of government. Allowing adequate time for registration, the association argued, would reduce unintended impacts on community livelihoods while supporting regulatory objectives.
The approach aligns with Indonesia’s broader efforts to balance regulation and platform responsibility in the digital economy, including work on platform regulation and online safety. ATTIA said it would continue dialogue with the Ministry of Tourism and other stakeholders as the process moves forward.
The original report was published by ANTARA News.
