New Indonesian government rules will require all hotels, villas and short-term accommodation to hold valid licences by March 2026 or risk being removed from online travel agency (OTA) platforms, the Ministry of Tourism has announced.
The move aims to close a wide gap between properties marketed online and those registered in the national business system, and to improve safety, tax compliance and competition.
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Unidentified accommodation listings challenge hotel regulation
A government mapping exercise in late 2025 found thousands of properties listed on OTA platforms in major tourism hubs operating without recognised business licences.
In Bali, more than 29,000 non-hotel accommodations were identified online but only about 14,500 were registered legally. In Jakarta, roughly 5,000 properties were marketed online, with only around 1,500 (28 per cent) holding valid licences.
Officials have said that the discrepancy undermines accurate data, weakens enforcement of safety and service standards, and creates unfair competition for fully licensed hotels.
Properties that fail to obtain the correct licences through Indonesia’s Online Single Submission (OSS) system by the 31 March 2026 deadline face removal from booking platforms, according to the ministry.
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By GlobalDataGovernment oversight and operator compliance
The policy forms part of a broader regulatory push to bring short-term rentals and villas into the formal tourism economy. Authorities have coordinated with regional governments and major booking platforms to support compliance and issue formal notices to partners on OSS licensing requirements.
While there have been contrasting views on enforcement strategies — including debates over proposals to ban certain types of short-term platforms entirely — the central government has reaffirmed that licensing and regulation, not outright bans, are the priority.
Industry representatives have generally welcomed clearer standards but have highlighted the need for consistent implementation at the local level.
Some accommodation associations have also called for more detailed classification systems and guidance on how villas and other non-hotel properties should be registered to ensure compliance.
Wider implications for tourism and hotel markets
The tighter licensing regime is expected to affect tourism accommodation markets beyond Bali and Jakarta, as Indonesia moves to enforce compliance nationwide by March 2026.
The change is in line with broader policy goals to strengthen tax collection, protect guest safety and promote fair competition in the hospitality and hotel sector.
Operators in the hotel and short-term rental sectors are watching the rollout closely, as enforcement could reshape market listings and influence revenue channels through OTA platforms.
Observers have linked the shift to global trends in tourism regulation, where authorities are increasingly focused on ensuring all accommodation providers meet formal licensing and tax obligations.
