Indonesia’s short-term rental market is set for major regulatory changes in 2026. After years of uneven enforcement, the government is now applying existing tourism, zoning, and licensing rules more strictly, especially for villas listed on platforms like Airbnb and Booking.com.
The regulation itself is not new, but enforcement has changed. Villa owners must now comply by March 31, 2026. Listings that do not meet licensing requirements may be automatically removed from Online Travel Agent (OTA) platforms.
For property investors in Bali, Lombok, and other tourism-driven regions, understanding the licensing roadmap is now essential to preserve rental income and avoid operational disruption.
Why Is the Government Enforcing these Rules in 2026?
For years, villas were constructed and marketed without proper building permits (PBG), Certificates of Worthiness (SLF), or appropriate zoning approvals. Many were also listed on OTAs without completing the required OSS registration.
The government is now aligning Indonesia with global regulatory standards, moving from informal “grey market” rentals to a system focused on transparency, taxation, and legal accountability.
The key objectives and mechanisms of the 2026 enforcement include:
- Improved Governance and Revenue Collection
Ensuring fair competition among accommodation providers and capturing previously unreported tax revenue. - Mandatory OTA Verification
The Ministry of Tourism has directed platforms such as Airbnb and Booking.com to verify the licenses of all listings. This follows successful regulatory models seen in Europe, where platforms are held liable for hosting unlicensed properties. - Unified Digital Framework
The Central Government provides digital licensing infrastructure through the OSS (Online Single Submission) system. Local Agencies, such as the Bali Tourism Department and the Tax Office, handle enforcement and compliance checks. - Standardized Business Labeling
According to the Ministry of Tourism’s “Coaching Clinic” guidelines, all tourism businesses must follow specific registration forms and public labeling requirements to prove their legitimacy to authorities and guests.
| Term | Definition |
|---|---|
| Online Travel Agent (OTA) | Digital booking platforms such as Airbnb and Booking.com that list short-term rental properties and are now required to verify business licenses before allowing listings. |
| PBG (Building Approval) |
A government-issued construction approval replacing the former building permit system, required before operating a property commercially. |
| SLF (Certificate of Worthiness) |
A certificate confirming that a building is structurally and functionally suitable for use in accordance with approved plans. |
| OSS System (Online Single Submission) |
Indonesia’s centralized digital licensing platform used for business registration and operational permit issuance. |
What Are the Core Licensing Requirements for Villa Operators in 2026?
All villa operators must be registered through the OSS (Online Single Submission) system, based on two foundational elements:
- NIB (Nomor Induk Berusaha)
- KBLI (Klasifikasi Baku Lapangan Usaha Indonesia)
A frequent compliance error is using a real estate KBLI code (68111) to operate short-term rentals. In 2026, this is considered a violation. If the property is rented to tourists, the KBLI must fall under the 55xxx accommodation category.
Incorrect classification can trigger licensing rejection or platform delisting.
| Term | Definition |
|---|---|
| NIB (Nomor Induk Berusaha) |
The Business Identification Number issued through OSS, serving as the primary legal registration for commercial activity. |
| KBLI (Business Classification Code) |
The official Indonesian business classification system determining licensing scope, risk level, and regulatory obligations. |
| KBLI 55xxx | The accommodation business classification category required for short-term tourist rentals. |
What Is the 7-Step Compliance Roadmap?
To meet the March 31, 2026, deadline, villa owners must complete the following structured process:
The 7-Step Compliance Roadmap
| Step | Milestone | Key Action & Significance |
|---|---|---|
| 1 | Legal Entity (The Holder) | Establish a PT PMA (Foreigners) or Local PT. Your company’s Articles of Association must explicitly list the correct KBLI codes (e.g., 55193 for Villas). |
| 2 | Obtain NIB (The Identity) | Register in the OSS system to obtain your 13-digit Business ID. While initially “Unverified,” this number is required to apply for building permits and tax IDs. |
| 3 | Zoning (KKPR/RDTR) | The OSS system checks your coordinates against the Digital Spatial Plan. You must obtain KKPR (Zoning Approval); if your land is in a “Green Zone,” the process stops here. |
| 4 | Building Approval (PBG) | Apply via the SIMBG portal. This requires technical drawings signed by a licensed Indonesian engineer. Existing IMBs must be updated if the “Function” does not match the KBLI. |
| 5 | Environmental (SPPL) | Submit a self-declaration of environmental and health/safety standards. Often automated in OSS once technical building requirements are met. |
| 6 | Worthiness (SLF) | A government-certified inspector issues the SLF (Sertifikat Laik Fungsi). This proves the building is safe and is the final “gold standard” required by OTAs. |
| 7 | Final Verification | Update your OSS profile with the PBG and SLF. Your NIB status changes to “Verified/Effective” — the status required to remain listed on Airbnb and Booking.com. |
This is a linear process. For example, without zoning approval (KKPR), a building approval (PBG) cannot be issued.
The objective is to reach Step 7 – Verified NIB Status, which is required by OTA platforms to maintain listing visibility.
Why Is Choosing the Correct KBLI Code Critical?
KBLI classification determines tax obligations, safety requirements, zoning eligibility, and risk category.
Below is the finalized accommodation classification guide under Minister of Tourism Regulation No. 6 of 2025 and the OSS-RBA (Risk-Based Approach) system:
Bali Accommodation Classification Table (2026)
| KBLI Code | Business Category | Definition & Strategic Insight |
|---|---|---|
| 55110 | Hotel Bintang | Star-rated hotels (1–5 stars). High-risk category with intensive safety audits. |
| 55120 | Hotel Melati | Non-star/budget hotels. Often used for boutique hotels with centralized services. |
| 55130 | Pondok Wisata | The Homestay Model. Limited to 5 bedrooms. Traditionally reserved for individual Indonesian owners residing on-site. |
| 55191 | Youth Hostel | Dormitory-style shared accommodation. Popular in areas like Canggu and Uluwatu. |
| 55192 | Campgrounds | Includes glamping. Growing segment in Kintamani and Ubud, subject to specific land-use permits. |
| 55193 | Villa | The Investment Gold Standard. Private estates rented as a whole. Classified as Medium-High Risk, requiring a verified SLF. |
| 55194 | Apartment Hotel | Serviced apartments. Increasingly used for aparthotels where units are sold individually but managed as one entity. |
| 55199 | Other Short-Term | Catch-all for bungalows and cottages. Avoid using for high-end villas as it may trigger misclassification audits. |
For high-end private villas, KBLI 55193 (Villa) is generally the appropriate classification. Using “Other Short-Term” (55199) may increase audit risk or lead to misclassification.
Why Is the March 31, 2026, Deadline Different?
Unlike prior advisories, the 2026 deadline is supported by a digital enforcement mechanism:
- API Integration
The Ministry of Tourism database is directly linked to OTA platforms. - Automatic Delisting
Listings without a “Verified” NIB status associated with the correct tax ID may be automatically hidden. - Revenue Transparency
The tax authority (DGT) can cross-check OTA revenue data against licensing status.
What Should Villa Owners Do Next?
Transitioning from an unlicensed rental to a “Verified” villa typically takes three to six months, depending on zoning and building documentation.
The following obligations apply:
- Villas located in a Green Zone may not be eligible for licensing.
- Yellow Zone properties require immediate zoning verification.
- Owners without a PT PMA or PT PMDN must establish a legal entity.
Property managers cannot group multiple villas under one operating address. Each KBLI permits only one operational address.
| Term | Definition |
|---|---|
| Green Zone | A zoning classification typically restricting commercial tourism activity, potentially disqualifying villa licensing. |
| Yellow Zone | A zoning category requiring verification to confirm eligibility for commercial rental licensing. |
| PT PMA / PT PMDN | Indonesian legal entities required for operating licensed tourism accommodation businesses. |
The 2026 framework will fundamentally change operations in the Bali rental market. Compliance is now mandatory.
The 2026 villa regulation focuses on enforcement through digital verification and platform integration, rather than changing existing laws.
ILA Global Consulting assists villa owners and property investors with PT PMA establishment, KBLI structuring, OSS registration, zoning verification (KKPR), PBG and SLF processing, and full OTA compliance preparation, ensuring your listing remains active and legally protected.
Contact ILA Global Consulting to audit your villa’s current status and achieve full compliance before the March 31, 2026, enforcement deadline.
