A hotel license in Bali allows a company to operate commercial accommodation on the island. It is issued through Indonesia's OSS system under the risk-based licensing framework, which sets the requirements for business registration, building approval, and tourism standard certification.
If you are planning to open a hotel in Bali as a foreign investor, you will need this license in place before you can operate and list your property on booking platforms. The requirements depend on the scale and class of the hotel, so those two decisions shape everything that follows.
Can Foreigners Own a Hotel in Bali in 2026?
Foreign investors can fully own and operate a hotel in Bali through a PT PMA, provided the hotel is large enough to sit in the medium-high or high risk tier.
Since May 2026, the OSS system no longer accepts new PT PMA registrations in Bali for the lower tiers. And for hotels specifically, the tier follows the scale of the operation. Larger properties remain fully open to foreign ownership, while smaller operations can no longer be registered directly by a new PT PMA.
Where the hotel qualifies, the PT PMA holds the land rights through a Hak Guna Bangunan (HGB) title or a registered long-term lease, obtains the licenses, and runs the business.
The OSS system assigns the risk tier based on the number of guest rooms, the headcount, and the total building size:
| Risk level | Guest bedroom units | Employee headcount | Total building size (m²) | Direct PT PMA registration |
|---|---|---|---|---|
| Low | Up to 60 | Up to 40 | Under 4,000 | Closed since May 2026 |
| Medium-low | 61 to 100 | 41 to 99 | 4,000 to 6,000 | Closed since May 2026 |
| Medium-high | 101 to 200 | 100 to 200 | 6,000 to 10,000 | Open |
| High | More than 200 | More than 200 | 10,000 or more | Open |
A hotel in the medium-high or high tier registers directly through its own PT PMA and proceeds through the standard verification. Below that threshold, the route into the segment is a compliant arrangement with a licensed local company.
You can discuss your plans with our consultants in Bali. We will advise on the requirements and compliant structure to start your hotel operations.
Types of Hotel Licenses in Bali
Indonesian regulations classify hotels by the quality of their product, service, and management rather than by their size. An accredited certification body (LSU Bidang Pariwisata) assesses each property against the standards for its class:
- Starred hotels (Hotel Berbintang): Carry a rating of one to five stars. The rating reflects the types of facilities and services. This ranges from a one-star property with private bathrooms and a reception to a five-star hotel with 24-hour room service and full leisure amenities.
- Non-starred hotels (Hotel Melati): Provide basic lodging without a star rating.
- Apartment hotels (Apartmen Hotel) combine kitchenette-equipped units with living areas and daily housekeeping service. They serve guests staying several weeks or longer, particularly digital nomads and extended-stay business travelers.
Under KBLI 2025, the classification system in force since December 2025, each class carries its own registration code:
| Hotel type | KBLI | Best suited for | Foreign ownership |
|---|---|---|---|
| Five-star hotel | 55101 | Luxury resorts and flagship properties in prime locations | Open |
| Four-star hotel | 55102 | Upscale hotels targeting international leisure and business travelers | Open |
| Three-star hotel | 55103 | Mid-range hotels balancing comfort and rate competitiveness | Open |
| Two-star hotel | 55104 | Budget hotels serving cost-conscious travelers | Open |
| One-star hotel | 55105 | Entry-level properties with essential services | Open |
| Non-star hotel (melati) | 55106 | Guesthouses and basic accommodation, reserved for local SMEs | Closed |
| Apartment hotel | 55204 | Serviced units for extended-stay and digital nomad guests | Open |
You should decide on your hotel type before you register, because the KBLI code in your Articles of Association must match the hotel you intend to certify.
Each code also carries its own minimum facility standards, from room counts to mandatory amenities. We break these down in the requirements section below.
Your class and your risk tier also go hand in hand when registering your business. The code declares the type of hotel you run, while the scale of the hotel decides whether your PT PMA can register it in the first place. To put this in perspective:
- Large-scale hotels with over 100 rooms, more than 100 employees, or buildings above 6,000 m² fall into the higher risk tiers. Your PT PMA holds the license directly.
- Smaller hotels below those thresholds fall into the lower tiers, which are closed to PT PMAs. However, you can engage a licensed local partner and operate through a compliant structure.
Emerhub provides end-to-end support for both arrangements. Book a free consultation with our team in Bali to confirm which route applies to your project.
How to Obtain a Hotel License in Bali
Obtaining a hotel license in Bali comes down to meeting four sets of requirements: your corporate structure, land zoning, facility standards, and the permits attached to your building. Emerhub Bali manages this entire sequence on your behalf. The sections below walk you through what each stage involves.
1. Register the PT PMA
You will need a PT PMA registered with the correct KBLI code before any permit in the licensing sequence can be issued. Setting one up for a hotel project requires:
- A total investment plan of more than IDR 10 billion (~USD 650,000) per KBLI code per project location, excluding land and buildings
- Minimum paid-up capital of IDR 2.5 billion (~USD 150,000) deposited into the company bank account
- At least two shareholders, one director, and one commissioner
- Articles of Association stating your KBLI 2025 hotel code
Once the company is registered, the OSS system issues your NIB (business license), the business identification number that anchors every subsequent permit. Your shareholding also qualifies you for an Investor KITAS, which allows you to live in Bali and oversee the project.
Some investors hold the property in one company and run hotel operations in another, each with their own KBLI. This protects your asset from operational liabilities and significantly optimizes your taxes when the hotel is eventually sold or refinanced.
Emerhub's company registration service covers both single and multi-entity setups, including KBLI selection and OSS registration. You can also outsource your tax and accounting to our local experts, who can handle your ongoing obligations and tax optimization.
2. Zoning Requirements for Starred Hotels in Bali
Hotels must sit on land zoned for tourism or commercial accommodation use, held under HGB title or a registered long-term lease. An incorrect zone will block your operating permit, so you must verify the zoning before signing a lease or purchase agreement.
Bali classifies its land into color-coded spatial zones through the KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang) spatial database. These integrate directly with the OSS system to automatically reject non-compliant applications:
- Pink (Tourism) and Red (Commercial) zones permit hotels of any class without obstacles.
- Orange zones may work for smaller properties depending on local rules.
- Yellow (Residential) and Green (Agricultural) zones are strictly prohibited for hotels and commercial development.
For a breakdown of Bali’s land zoning framework and which zones work for different property types, see our guide to buying property in Bali.
3. Facility and Operational Requirements by License Type
The license type you choose dictates the physical and operational layout of your property. If the building fails to meet the standards for its class, the accredited certification body will not verify your standard certificate, which in turn blocks your operating permit.
Indonesian tourism regulations set clear, measurable thresholds for each hotel class:
| Hotel class | Min. rooms | Min. room size (m²) | Min. suite rooms | Mandatory facilities and services |
|---|---|---|---|---|
| Non-star (melati) | No minimum | No minimum | 0 | Private or shared bathrooms, standard point-assessment value of 152 |
| One-star | 15 standard | 20 | 0 | Private bathrooms in all rooms, reception area |
| Two-star | 20 standard | 22 | 1 (44 m²) | Guest lobby, basic sports facility, in-room television |
| Three-star | 30 standard | 24 | 2 (48 m²) | In-room AC, hotel restaurant, bar, concierge service |
| Four-star | 50 standard | 24 | 3 (48 m²) | Hot and cold water, lobby of minimum 100 m², recreational area |
| Five-star | 100 standard | 26 | 4 (52 m²) | 24-hour room service, luxury pool, spa, fitness center |
The inspection covers your paperwork as well as your building. To pass the tourism verification and secure your permanent standard certificate, your PT PMA must prepare:
- An internal Standard Operating Procedures (SOP) manual covering guest health, general hotel safety, and fire evacuation routes
- Accredited competency certificates (sertifikat kompetensi) for your core hospitality staff, issued by a recognized local training body (LSP)
- Regular water testing results and environmental logs proving your sanitation meets regional safety guidelines
4. Mandatory Environmental and Building Permits
Environmental requirements scale with your development. You will need to conduct an impact assessment based on the scale of your hotel:
| Environmental assessment | Thresholds | Issuing authority | Timeline | Example hotel projects |
|---|---|---|---|---|
| SPPL (low impact) | Land area strictly under 1 hectare (10,000 m²) and/or floor area under 5,000 m² | OSS portal | Instant. Processed digitally during initial business setup. | Small non-star hotels, guesthouses/homestay, boutique spaces |
| UKL-UPL (medium impact) | Land area 1 to under 5 hectares and/or floor area 5,000 m² to under 10,000 m² | Regency DLH (local environmental agency, e.g. DLH Badung or Gianyar) | 2 to 4 weeks. Requires a field inspection. | Boutique hotels, mid-sized starred hotels, and aparthotel developments |
| AMDAL (high impact) | Land area of 5 hectares or more and/or floor area of 10,000 m² or more. | Provincial DLH or Ministry (Bali Provincial Environmental Agency or Ministry of Environment) | 3 to 6 months. Involves rigorous evaluations and public consultations | Mega-resorts, large star-rated hotels, and any project near coastal or mangrove buffers |
The physical building must also hold the correct commercial building permits (the PBG and SLF). If you purchase or lease an existing building with a residential permit, you must formally convert its official function to commercial accommodation. This conversion is demanding because commercial buildings must meet much stricter safety codes.
If your hotel draws water from a well, you will also need a SIPA groundwater permit, which enforcement teams in Bali now actively verify during routine on-site audits.
Ongoing Compliance to Maintain Your Hotel License in Bali
Your hotel license stays valid only as long as the obligations behind it are met. The SLF carries a five-year term, and the renewal requires a fresh building inspection, so you should schedule it months ahead rather than waiting for the expiry. Operating on an expired certificate voids your corporate liability insurance. You could also lose your verified status on booking platforms and, as a result, must restart the application from scratch.
Several recurring duties continue throughout the life of the business. Regulators in Bali now cross-check these records against OSS data. This means missed filings and costly penalties can quickly accumulate.
- Quarterly LKPM reports
- Foreign guests must be reported to immigration
- The 10% Pajak Barang dan Jasa Tertentu (PBJT) must be reported and paid to the regional tax office every month
The subtler risk comes from when your business outgrows its registered activities. Let’s say your hotel starts hosting weddings, or your restaurant opens to the public (walk-in customers instead of hotel guests). Each of these will need its own KBLI code under the same company.
Once your registered classification and operations no longer match, your license becomes vulnerable even if every filing is on time. Reviewing your registration against your revenue streams helps you close that gap before an inspector flags it.
How Emerhub Handles Your Hotel License Application
Emerhub can manage the full hotel licensing process in Bali on your behalf. This starts with confirming your intended classification is registrable under the current OSS restrictions and verifying the zoning of your target property before any capital moves.
From there, we handle the PT PMA registration, building and environmental permit applications for your construction, and the tourism standard verification. For starred hotels, we coordinate the certification assessment with the accredited body. For smaller properties, we can structure a compliant arrangement with a licensed local property management company.
Once your hotel is operating, we also provide ongoing compliance support covering LKPM reporting, tax filings, and license renewals under one arrangement. Get in touch with our local team to talk through your project and learn how we can support your activities in Bali.
Frequently asked questions
What is the minimum capital required to set up a hotel in Bali?
Under the latest regulations, you need a minimum paid-up capital of IDR 2.5 billion (~USD 150,00), which must be deposited into your company bank account. You must also commit to a total investment of more than IDR 10 billion (~USD 650,000) per KBLI code, excluding the value of land and buildings.
How long does it take to get a hotel license in Bali?
The hotel licensing process typically takes 6 to 12 months from company registration to a verified operating license. The timeline stretches further for large developments, since a full AMDAL assessment adds months and the SLF inspection can only happen once construction is complete.
Do existing hotels need to update their KBLI code to KBLI 2025?
Existing hotels registered under KBLI 2020 keep their valid licenses, and the government confirmed that most code conversions are automatic through the OSS system. A manual adjustment through OSS and potentially an Articles of Association amendment is only required where the change affects the substance of the business, such as its scope of activities or risk classification.
How is the local hotel tax collected and paid in Bali?
The 10% Pajak Barang dan Jasa Tertentu (PBJT) is collected from your guests on all accommodation services. Your company reports and pays the collected amount monthly to the local regional tax office, or Bapenda, using its regional tax number. Emerhub can handle this on your behalf as part of our compliance support package.
Can one hotel license cover a restaurant, spa, or other facilities inside the hotel?
A hotel license generally only covers accommodation. Facilities like restaurants, spas, and event spaces fall under their own KBLI classifications. This is why most full-service hotels typically register several codes under the same PT PMA. Whether you need the extra code depends on who the facility serves. For example, a breakfast room serving only in-house guests falls within your hotel's registered activity. However, once that restaurant serves walk-in diners or earns its own revenue, it becomes a separate business activity and needs its own code. Each additional code also carries its own investment commitment. Emerhub can map out the applicable codes to your revenue model at setup.