Illegal tourist accommodations have become a growing concern across Indonesia, prompting the government to introduce stricter licensing requirements starting in 2026. The surge in unlicensed properties, particularly in major destinations such as Bali and Jakarta, has raised issues related to safety, data accuracy, and fair competition. As a response, the Ministry of Tourism has rolled out new regulations that will require all accommodation providers to obtain valid business permits within a defined timeframe.
Crackdown on Illegal Tourist Accommodations
The government’s attention to illegal tourist accommodations intensified after data revealed a significant gap between properties listed on online travel platforms and those officially registered. According to the Ministry of Tourism, the issue surfaced prominently in early 2025 and has since spread to multiple tourism hubs. Minister of Tourism Widiyanti Putri Wardhana stated, “Responding to the issue of unlicensed accommodations that has emerged in Bali and other tourism destinations since the beginning of this year, we have conducted data collection, guidance, mentoring, licensing education, and supervision of tourism accommodation business operators.”
This growing number of unlicensed accommodations has created regulatory blind spots. As a result, authorities now view stronger enforcement as essential to protect tourists and maintain industry standards. The ministry has therefore shifted from passive monitoring to active supervision across regions.
Mandatory Accommodation Permits Starting 2026
To address these challenges, the government has introduced mandatory accommodation permits under Minister of Tourism Regulation Number 6 of 2025. The regulation sets standards for tourism business activities, outlines supervision procedures, and defines administrative sanctions under a risk-based licensing system. Widiyanti explained that the policy aims to establish consistency and accountability across the tourism sector.
The regulation also sets a firm compliance deadline. “We are coordinating with local governments and online travel agents to ensure that all accommodations listed on platforms have obtained the appropriate business licenses with the correct KBLI classification, no later than March 31, 2026,” Widiyanti said. This deadline gives operators limited time to adjust while signaling the government’s commitment to enforcement.
Indonesia Tourism Licensing and KBLI Compliance
Indonesia tourism licensing plays a central role in the new enforcement strategy. Authorities have emphasized the importance of registering accommodations under the correct Indonesian Standard Industrial Classification, or KBLI. This classification ensures that business activities align with legal requirements and government oversight systems.
Assistant Deputy for Sustainable Tourism Business Management at the Ministry of Tourism, Amnu Fuadiy, revealed the scale of the compliance gap. “The data we obtained in October 2025 shows that in Bali there are more than 29,000 non-hotel accommodations listed on online travel agents, but only 14,500 are recorded in the BKPM system,” he said. Meanwhile, Jakarta faces a similar issue, with only about 28 percent of non-hotel accommodations holding valid licenses.
To close this gap, the ministry has increased coordination with regional governments, online travel platforms, and related institutions. These efforts aim to improve registration accuracy while ensuring that all operators meet licensing standards.
Risks of Unlicensed Accommodations for Operators and Guests
Unlicensed accommodations pose risks beyond regulatory non-compliance. Amnu warned that the situation creates “unfair business competition and causes government data to be inaccurate.” He added that the lack of licensing also “has the potential to create inequality and security risks, both for operators and for guests staying at these accommodations.”
Without proper permits, accommodation providers may operate without safety standards, insurance coverage, or consumer protection mechanisms. At the same time, licensed operators face competitive disadvantages when unregulated properties avoid taxes and compliance costs.
Impact on Tourism Revenue and Industry Standards
The Ministry of Tourism has stressed that business permits are not mere administrative formalities. Widiyanti emphasized that tourism accommodation licenses are necessary to meet safety, professionalism, and fiscal obligations. These requirements directly support regional original revenue and national tax income.
To help operators comply, the ministry has introduced coaching clinics that provide guidance and mentoring throughout the licensing process. Through stricter enforcement and structured support, the government aims to strengthen industry standards while ensuring sustainable growth. Ultimately, the regulation seeks to restore balance, protect visitors, and build a more transparent tourism ecosystem ahead of 2026.
Source: kompas.com
Image: Getty Images
