GATAVIA GLOBAL · Gatavia Indonesia

Short-term rentals in Indonesia

This section explains how short-term rental works in Indonesia and how to correctly separate the various legal, fiscal, and operational layers. The specific answer depends on the type of property, the mode of operation, and the applicable rules.

✓ Information reviewed: 08/26/2026

🇮🇩

GATAVIA

This section explains how to analyze the market, profitability, and investment in Indonesia without confusing the different legal, fiscal, and operational layers. The concrete answer depends on the type of property, the exploitation method, and the applicable rules. Specific and verified data is presented below in the Gatavia information block.

Investment analysis must separate general tourism data from the actual metrics of a specific property. National or regional overnight stays help understand demand, but do not equate to occupancy, average price, or profitability of a property.

Tourism market in Indonesia

Data, context and key indicators for the tourism market.

tourism

+10,8 % approx. year-on-year

15.39 million international arrivals in 2025

Indonesia closed 2025 nearly recovering the pre-pandemic volume.

Period: 2025

tourism

+9,72 %

6.95 million direct foreign arrivals to Bali in 2025

+9.72% compared to 2024.

Period: 2025

market

23,44 %

Australia: 23.44% of foreign arrivals to Bali in 2025

Main issuing market.

Period: 2025

regulation

+46,5 %

Formalization of short-term rental: units with NIB +46.5%

Comparison May 20, 2026 vs March 31, 2025.

Period: May 20, 2026

regulation

+76,4 %

Growth of villas with NIB

Growth of villas with NIB Value: 76,4 % Reference year: 2026 Scope: Indonesia Interpretation: Highest growth among the mentioned accommodation categories.

Period: 2026

taxation

Rp4,8bn

PP20/2026: Final PPh UMKM 0.5% up to Rp4.8bn for eligible profiles

PP20/2026: Final PPh UMKM 0.5% up to Rp4.8bn for eligible profiles Applicable type: 0,5 % Tax base: 0.5% on omzet for compliant profiles; it is not a universal regime for corporations. Conditions: Omzet ≤Rp4.8bn and eligible taxpayer. Exceptions: Ordinary PT, CV/firm, and PMA should not be assumed eligible under PP20/2026; verify applicable text. Verified example: Rp1bn of eligible omzet could generate Rp5m of final PPh, before individual exempt threshold rules.

Period: 2026

taxation

Rp150.000

Levy for foreign tourists in Bali Rp150,000

Levy for foreign tourists in Bali Rp150,000 Applicable type: IDR per visitor/trip Tax base: Visitor's obligation; it is not ordinary billing from the host. Conditions: Foreign visitor subject. Exceptions: Exemptions provided by regulation. Verified example: Separate in the guest experience and accounting.

Period: 2026

Regulatory alerts

Public information is not yet available for this section.

Regulatory framework

national

Tourism license by risk through OSS

Yes.

Tourism license by risk through OSS Application: Tourism accommodation Verified rule: Yes. Conditions: Actual activity, correct KBLI, scale, location, and operating subject. Exceptions: There is no simplified national Airbnb license that replaces the PBBR. Timing: Before starting/continuing activity and in case of material changes. Legal reference: PP 28/2025; Permen BKPM 5/2025; Permenpar 6/2025

national

KBLI 2025: villa within short stay accommodation

Yes.

KBLI 2025: villa within short stay accommodation Application: Villas and short stay rentals Verified rule: Yes. Conditions: Villa operated as temporary tourist accommodation. Exceptions: A mere real estate/residential activity does not become a villa just by advertising on an OTA. Timing: At registration, KBLI migration, and activity changes. Legal reference: KBLI 2025 OSS · 55203 Villa

national

Transition 2025-2026: do not use historical codes without reconciliation

Mandatory review.

Transition 2025-2026: do not use historical codes without reconciliation Application: Existing businesses Verified rule: Mandatory review. Conditions: Business prior to KBLI 2025 or sector document with historical code. Exceptions: Purely numerical conversion may be automatic; a real change of activity is not. Timing: Immediate review in 2026 and at each renewal/change. Legal reference: KBLI 2025 transition guidance; Kemenpar May 26, 2026

national

Villa sector standard: health, safety, building and management

Yes.

Villa sector standard: health, safety, building and management Application: Villa Verified rule: Yes. Conditions: Activity classified as a villa and applicable risk level. Exceptions: Specific certification exceptions depend on the risk level and the rules in force. Timing: Ongoing; certification and standard requirements within the applicable deadlines. Legal reference: Permenpar 6/2025 Annex Villa

national

Pondok Wisata / homestay does not equate to investment villa

Distinct category.

Pondok Wisata / homestay does not equate to investment villa Application: Homestay / accommodation occupied by the owner Verified rule: Distinct category. Conditions: Actual use as a homestay and category criteria. Exceptions: If the property is transferred entirely or operates as a villa, review another KBLI. Moment: Before registration and in case of model changes. Legal reference: Permenpar 6/2025 Annex Pondok Wisata

national

KKPR/RDTR + PBG + SLF are separate entries from the NIB

Yes.

KKPR/RDTR + PBG + SLF are separate entries from the NIB Application: Tourist properties Verified rule: Yes. Conditions: Specific parcel and building. Exceptions: Existing buildings may have valid historical documents, but changes in function/construction may trigger new procedures. Moment: Before purchase, change of use, renovation, and opening. Legal reference: PP 16/2021; PP28/2025; SIMBG

national

Reporting foreign guests through APOA

Yes.

Reporting foreign guests through APOA Application: Accommodation receiving foreign guests Verified rule: Yes. Conditions: Foreign guest. Exceptions: Does not replace any other police or local obligations that may apply. Timing: For each stay and in accordance with the system's requirements and deadlines. Legal reference: Immigration Law art.72 + APOA

national

Data Protection Law fully applicable since October 2024

Yes.

Data Protection Law fully applicable since October 2024 Application: Hosts, managers, OTAs and providers Verified rule: Yes. Conditions: Processing of personal data. Exceptions: Specific obligations depend on the role and the processing carried out. Timing: Ongoing. Legal reference: UU 27/2022 PDP; Komdigi implementation status

Short-term rental taxation

Taxation

Corporate income tax general: 22%

Taxation

Personal income tax: 5% to 35% by brackets

Taxation

PP20/2026: Final PPh UMKM 0.5% up to Rp4.8bn for eligible profiles

0.5

Taxation

Eligible individual: first Rp500m of annual omzet without final PPh

500000000

Taxation

Jasa perhotelan local: fuera de PPN central cuando encaja en PMK70

Taxation

PBJT jasa perhotelan: techo general 10%, tipo exacto por Perda

Regulatory and market evolution

04/22/2026

PP20/2026 changes who can use the 0.5% UMKM

The 0.5% remains, but eligibility has tightened.

03/30/2026

Versioned historic KBLI → 2025

Versioned historic KBLI → 2025 Application: Existing businesses What to check: Keep historic 551xx and current 552xx where applicable. Process: Register previous code, current code, conversion date, if it was automatic and if deed/activity changed. Validate in OSS. Frequency: Once + upon change Documentation: Old/new NIB, deed, OSS capture/PDF Evidence: KBLI conversion record Risk: Critical

10/17/2024

UU PDP is now fully applicable

As of October 2024, it should not be treated as a transition period.

02/14/2024

Bali foreign tourist levy: obligation of the visitor, not PBJT of the accommodation

Yes.

PROFESSIONAL CONTENT

Gatavia Professionelles Dossier · Indonesia

Advanced analysis for owners, managers and investors who need to go beyond public information.

Due diligence

Professional checks before purchasing, operating or converting short-term accommodation.

🔒 Protected content

Advanced regulation

In-depth analysis of requirements, restrictions, risks and regulatory scenarios.

🔒 Protected content

Professional taxation

Advanced tax treatment, scenarios and issues requiring special attention.

🔒 Protected content

Professional operations

Processes, recurring obligations and documentary control.

🔒 Protected content

Territorial radar

Assessment of territories, cities and areas with different market or regulatory conditions.

🔒 Protected content

Investors

Risks, costs, profitability, scenarios and criteria before making an investment decision.

🔒 Protected content

Managers

Compliance, representation, reporting and professional management for third parties.

🔒 Protected content

Metrics and alerts

Professional indicators covering market, demand, risk and regulatory evolution.

🔒 Protected content

This dossier is included with Gatavia Country and Gatavia Global.

Sources and reference authorities

Badan Pusat Statistik (BPS)

Domestic Tourism Statistics 2025

Badan Pusat Statistik (BPS)

BPK / Government of Indonesia

Law No. 1 of 2022 — HKPD local property tax framework

BPS Provinsi Bali

Direktorat Jenderal Imigrasi

Direktorat Jenderal Pajak

Final income tax on transfer of land/building — 2.5%

Kementerian Agraria dan Tata Ruang/BPN

Permen ATR/BPN No. 18 Tahun 2021 — foreign residential ownership limits

Kementerian ATR/BPN

Kementerian Investasi/BKPM

PP Number 28 of 2025 · Risk-Based Business Licensing

Kementerian Keuangan

PMK 70/PMK.03/2022 · VAT scope for hospitality services

Kementerian Komunikasi dan Digital

Kementerian Pariwisata

Ministry of Tourism Develops API System with OTAs to Strengthen Governance of Tourism Accommodation Sector

Kementerian Pariwisata

Kementerian PUPR

OSS Indonesia

Pemerintah Kabupaten Badung

Pemerintah Provinsi Bali

Bali asks Airbnb to remove unlicensed and tax-noncompliant tourism businesses

Pemerintah Provinsi Bali

Pemerintah Provinsi DKI Jakarta

Pemerintah Republik Indonesia

PROFESSIONAL PDF GUIDE

Prefer to buy the guide only?

You can also purchase the country's PDF edition as a one-off purchase without an annual membership.

View professional guides

Gatavia organises professional information for information and management purposes. General information does not replace legal, tax or technical advice tailored to a particular case.