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?
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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
0 of 8 completed0/7 required
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+
Star Rating Benefits
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
8-12 weeks
Rp 0
6 steps
1
2
3
4
5
6
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
Safety First
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
Villa Rental Restrictions
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
