Tourism & Hospitality Business in Indonesia 2026: Foreigner's Guide
Tourism is a major industry in Indonesia, especially in Bali, Lombok, and emerging destinations. Here's how foreigners can participate.
Tourism Business Types
What Tourism Business?
What type of business interests you?
Tourism Business Structure
Tourism Business Options
Ownership and investment comparison
| Feature | Hotel (15+ rooms) Full-scale hotel | Tour Operator Day tours & activities | Travel Agency (BPW) Full travel services | Villa Rental Small-scale accommodation |
|---|---|---|---|---|
| Foreign Ownership | 100% | 100% | 100% | Restricted |
| Investment | IDR 10B+ | IDR 10B | IDR 10B | Varies |
| License | TDUP Hotel | TDUP Tour | BPW License | Pondok Wisata |
| Star Rating | Optional but beneficial | N/A | N/A | N/A |
Hotel Investment
Hotel License Requirements
Hotel Business Checklist
Requirements for hotel operation
company
tourism
property
safety
Hotel Star Ratings
| Stars | Requirements | Typical Room Count |
|---|---|---|
| 1-star | Basic amenities | 15+ |
| 2-star | Standard facilities | 20+ |
| 3-star | Full service | 30+ |
| 4-star | Premium service | 50+ |
| 5-star | Luxury standards | 100+ |
While optional, star ratings help with: - Marketing and visibility - Online travel agent (OTA) positioning - Government tourism programs - Corporate bookings
Tour Operator Business
Tour Operator Setup
Tour Operator Journey
Setting up tour operations
Adventure Tourism
Special considerations for adventure activities:
Diving Operations
- PADI/SSI affiliation - Certification required
- Dive safety officer - Trained staff
- Equipment standards - Regular maintenance
- Insurance - Dive-specific coverage
- Rescue readiness - Emergency protocols
Water Sports
- Surfing schools - Instructor certifications
- Rafting operators - River permits, safety gear
- Snorkeling tours - Guide training, equipment
Adventure tourism carries liability risks. Proper insurance, certified guides, and safety protocols are essential - not just for compliance but for your protection.
Villa Rental Challenges
Small-scale villa rental is one of the most restricted areas for foreigners: - Many areas prohibit foreign-owned Pondok Wisata - Bali has specific regulations limiting foreign villa operations - "Nominee" arrangements are illegal and risky - Leasing land + building villa has ownership complications
Villa Options for Foreigners
- Hotel classification (15+ units) - Possible with PT PMA
- Property management - Manage others' villas
- Joint venture - With Indonesian partner (risky)
- Leasehold investment - Limited control
Travel Agency (BPW)
Full travel agencies can:
- Book airline tickets
- Arrange hotel reservations
- Create package tours
- Handle ticketing
BPW Requirements
- PT PMA with travel agency KBLI
- TDUP for travel agency
- Proof of financial capability
- Licensed staff
Common Questions
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