If you’re looking to create a travel agency in Indonesia – Bali, you’ll need to understand the local business environment and legal nuances. This article cuts through the complexity to give you a straightforward guide on setting up your travel agency in Indonesia.
Key Takeaways
- Starting a travel agency in Bali involves navigating legal requirements including ownership laws, substantial capital, and multilevel licensing, with registration in ASITA being crucial for integrating travel packages.
- To establish a successful travel agency in Bali, one needs to differentiate between agency and tour activities, select the appropriate legal entity, understand the registration process, and create partnerships with local businesses to optimize customer experiences.
- Building strong networks with local hotels, service providers, and domestic flight companies is essential for offering high-quality, tailored travel experiences, competitive rates, and flexible travel options to enhance client satisfaction and facilitate seamless vacations.
Navigating the Legal Landscape for Your Bali Travel Agency
Establishing and create a travel agency in Bali Indonesia entails navigating through regulatory frameworks specific to this Indonesian destination.
Setting up you travel agency in Indonesia
The only legal option to own a travel agency or Tour and Travel is trough a company called PT PMA. This type of company is a limited liability companies (LLC), which provide the essential legal framework needed to conduct travel and tourism activities within Indonesia.
The process to start a company takes 3 days to 1.5 week. You can find more details by consulting our guide to register a company in Indonesia.
Ownerships for Travel Agency
Investors from ASEAN member states are permitted up to 70% ownership in such businesses, whereas non-ASEAN investors may acquire up to 67% stake via a joint venture. Setting up your business here involves fulfilling significant financial prerequisites, securing various permits, and setting up corporate governance that includes at least two shareholders alongside an indigenous director.
ASITA License
Once your company PT PMA is integrated you must enroll with ASITA—the Association of Indonesian Tours and Travel Agencies—which mandates submission of specific commercial documents along with endorsements and payment for membership dues.
Having a local partner or staff might be essential as a proficiency in Bahasa Indonesia can be particularly beneficial when engaging with local agencies as it enhances communication within Bali’s tourism sector.
Travel Agency versus Tour and Travel Activities
Indonesia makes a distinction between those 2 activities as below:
Travel Agent
Businesses whose activities are as intermediaries for the sale of tour packages, both online and offline, packaged by travel agents: ordering tickets for land, sea, and air transportation, both for domestic and foreign destinations, booking accommodation, restaurants, and tickets for cultural arts performances, as well as visits to tourist destinations or attraction, and arranging travel documents in the form of passports and visas or other equivalent documents.
Tour and Travel Activities
Businesses whose activities are planning and packaging the components of tourist trips including nature tourism, which includes tourist facilities, destinations or tourist attractions and other tourism services, especially those in the territory of Indonesia in the form of tour packages, conducting and selling tour packages by channeling through travel agents and/or selling directly to tourists or consumers, providing tour guide services related to tour packages sold, both online and offline, providing tour transportation services, making accommodation reservations, restaurants, and convention venues, and selling tickets for cultural arts as well as visits to tourist attractions, arranging travel documents in the form of passports and visas or other equivalent documents.
Registration Procedures and Licensing Essentials
In order to commence operations in a lawful manner, your agency is required to undergo registration with Indonesia’s Business Registry. This encompasses securing a tourism business certificate and designating an auditor. Association with ASITA is compulsory for functioning within the industry and this process differs across provinces. To fulfill the requirements of ASITA membership, you will need to provide various documents including a tax card (NPWP), business identification number (NIB), recommendation letters, and pay both a membership fee and annual dues.
Be aware that there may be substantial extra expenditures involved in setting up your tourism company. These could include costs associated with procuring domicile documentation along with other necessary permits needed for the operation of your business within Indonesia’s regulatory framework. We can accompany you through the process.
Partnering with Local Businesses and Service Providers
A local partner is important to develop your local network. ASITA can assist you to also make your company legit for your clients.
Ensuring all legal matters are in order, the next step is to cultivate a network of local partners to elevate your clients’ experience. Forming strategic collaborations with hotels, restaurants, and various service providers is crucial. By securing special rates and packages from these local entities, you can propose lodging options and activities that not only offer additional value but also give insight into the genuine Balinese way of life.
Frequently Asked Questions
How do I start a travel startup?
You can setup your PMA in a few days. We can start the process and finalize the process while you are in Indonesia. You can get an Investor KITAS
Can you help with ASITA License?
Our legal team can assist you to connect with ASITA and assist you during the process.
What percentage of a travel agency in Bali can foreign investors own?
Investors hailing from nations within the ASEAN bloc are permitted to hold a majority stake of up to 70%. Ownership for investors from countries outside the ASEAN bloc is capped at 67%.
Foreigners can own a tour and travel bureau at 100%.
Contact us if you want to know more on how to create your travel agency in Indonesia.
