Open a hotel, villa, or tourism business in Indonesia

Pick the accommodation KBLI carefully

Star-rated hotel (55110) implies an actual classification process under Permenparekraf — a 4-star hotel must meet specific facility standards. Non-star hotel (55120) covers budget hotels and homestays without classification. Villa rental (55190) covers private-villa rentals. Glamping / unique-accommodation operators sometimes use 55900 (other accommodation). The choice affects TDUP scope, classification requirements, and which tax regime applies (hotels have a separate tax regime — Pajak Hotel — collected by the local government).

Bali zoning is the single biggest constraint

Bali enforces zoning more strictly than other Indonesian regions. The Province has designated tourism zones, residential zones, and agricultural zones — operating a villa rental or hotel in a non-tourism zone is not just risky, it leads to closure orders. The zoning is in the IMB (building permit) and the local Spatial Plan (RTRW). Many foreign investors discover the zoning issue after they\'ve already bought the leasehold — it\'s the single most common Bali-PMA failure mode.

Hotel classification — the TDUP + classification chain

TDUP (Tanda Daftar Usaha Pariwisata) is the basic tourism business licence, issued via OSS. On top of that, star-rated hotels need classification certification under Permenparekraf 18/2014 (and updates) — confirming the hotel meets the 1/2/3/4/5-star standards via a third-party audit. Non-star hotels skip classification but still need TDUP. The classification process typically takes 3–6 months after the property is operational.

KBLI codes that fit this goal

Permits you'll typically need

• TDUP (Tanda Daftar Usaha Pariwisata)

  Regency / City Tourism Office (via OSS)

  Mandatory for any tourism business — hotels, villas, tour operators, beach clubs.

• Hotel classification certificate

  Kemenparekraf via accredited certifying body (LSU)

  Mandatory for star-rated hotels (KBLI 55110) — confirms 1–5 star compliance via third-party audit.

• IMB / PBG (building permit)

  Local government

  Required before construction. Bali zoning is enforced via this — confirm tourism-zone designation BEFORE buying leasehold.

• AMDAL or UKL-UPL (environmental)

  KLHK

  Larger hotels (≥30 rooms) typically need AMDAL; smaller need UKL-UPL.

• TDUP for tour operations

  Tourism office

  Tour operators, dive shops, surf schools all need their own TDUP under their KBLI.

How much capital and what ownership rules apply

Standard PMA: IDR 2.5b paid-up, IDR 10b total investment value per KBLI per location. Hotel and tourism KBLIs are universally 100% PMA-open under Pres. Reg. 10/2021. The IDR 10b commitment per location is rarely the binding constraint — most hotels and villas easily exceed it through land lease + construction. Land ownership is the harder problem: foreigners can\'t own freehold land (HM); HGB lease (max 80 years) or Hak Pakai (right-to-use, max 80 years) are the standard structures.

Step-by-step setup

1. 01
   Site selection — confirm tourism-zone designation in the local Spatial Plan (RTRW) BEFORE signing any lease or purchase. This is non-negotiable.
2. 02
   Land structure — HGB (Hak Guna Bangunan) leasehold or Hak Pakai. Foreign individuals + foreign-owned PT PMA both have specific rules.
3. 03
   Incorporate PT PMA → KBLI 55110 / 55120 / 55190 (or combination) + 79110 if doing tours.
4. 04
   NIB via OSS, IMB / PBG building permit, environmental approval (AMDAL or UKL-UPL).
5. 05
   Construction → operating-readiness inspections.
6. 06
   TDUP via OSS — for villa operators this is usually the final pre-launch step.
7. 07
   For star-rated hotels: classification certification via LSU (accredited certifying body) — 3–6 months post-operational.
8. 08
   Open + monthly Pajak Hotel returns to local government + LKPM quarterly to BKPM.

Common gotchas worth knowing

• ·Bali zoning is enforced retrospectively — villas operating in residential or agricultural zones can be (and have been) shut down years after launch. Confirm zoning in the local RTRW before any lease commitment.
• ·Hotel-specific tax (Pajak Hotel) is collected by the local government, not the central DJP — separate registration, separate filing schedule, easy to forget if your accountant is set up only for central tax.
• ·Star classification is mandatory for KBLI 55110 — operating an unclassified hotel under that KBLI is non-compliant and risks revocation of TDUP.
• ·Foreign individuals cannot directly own residential / villa land — even via PT PMA, structures involve HGB leasehold over land owned by an Indonesian individual or by the State (Tanah Negara).

Frequently asked