Indonesia tightens rules for Airbnb-style rentals

The Indonesian government has tightened regulations for short-term rental properties including those listed on digital platform Airbnb by mandating that they ‌possess business ⁠permits, ⁠the country's tourism minister said on Friday.

All accommodations listed on online travel agencies must have necessary business licenses by March 31, Minister Widiyanti Putri Wardhana ⁠said on ‌her Instagram account.

The government expects all ⁠operators to start processing the required permits, Widiyanti said.


The new regulation came after the governor of Indonesian resort island of Bali proposed to halt all short-term rentals including those ‌listed on Airbnb, as the provincial government was losing regional tax ⁠revenue.

Widiyanti said the move seeks to ensure Indonesia's tourism sector keeps growing, to prevent tax evasion, and to provide a fair environment for all business operators in the tourism sector.