Bali's beautiful scenery and vibrant culture draw many tourists and expats, creating a high demand for places to stay. This provides great opportunities for foreign investors in the accommodation industry. Whether you are planning to open a small or a larger hotel, understanding the local regulations is crucial.
To legally operate a hotel in Bali, you need the right licenses. This article will guide you through the steps to acquire a hotel license and hotel license requirements in Bali.
How to Obtain a Hotel License in Bali
Any foreign-owned hotel in Bali must be properly licensed to collect revenue from services. This requirement applies whether you manage the hotel privately or through a third party like Airbnb.
Licensing ensures that hotels meet the standards set by the Indonesian Ministry of Tourism for amenities, construction, and service quality.
You can successfully establish and operate a hotel business in Bali by following the steps:
1. Incorporate Your Company
You must register your business with the appropriate government agencies to ensure it is legally recognized and falls under the correct business classification.
Bear in mind that Bali's OSS system no longer processes new PT PMA registrations for low and medium-low risk KBLIs as of May 2026. Smaller hotel operations that fall under these classifications will need to explore alternative registration pathways. Emerhub can handle the registration process for you, ensuring your business is correctly structured and compliant under the current rules.
2. Build or Purchase Your Hotel
If you're building your hotel from scratch, you must secure all the necessary permits and clearances for construction.
If you're purchasing an existing hotel, make sure all property documents are in order and compliant with local regulations.
Emerhub can help you avoid any legal issues in obtaining the necessary permits for your hotel.
3. Obtain a Hotel License
Apply for a hotel license from the Department of Tourism (DOT) to operate legally and maintain quality services. Read the hotel license requirements below to get detailed information.
4. Apply for Additional Operational Licenses
- Local Revenue Tax (NPWPD): Register for a local revenue tax with the local government unit (LGU) where your hotel is located.
- Ground Water Intake (Air Bawah Tanah) License: If your hotel requires ground water usage, apply for the necessary permits from the National Water Resources Board (NWRB).
Hotel License Requirements in Bali
A fully foreign-owned hotel must occupy a minimum area of 4000 m² to be eligible for licensing and meet one of the Bali hotel grading classifications.
When starting an accommodation business, you can select the grade, as long as you ensure that your accommodation meets the criteria:
- Apartment Hotel: Hotels that provide added amenities that are closer to an apartment living style (kitchen, bathroom, sleeping area, other lounging areas)
- Hotel Melati (Non-Star Hotel): Hotels that provide only basic amenities, with no added services. Generally referred to as non-starred hotels. All necessary licenses to run a hotel melati are granted by BKPM, valid for three years.
- Hotel Berbintang with 2,3,4,5 stars: Accommodations that provide amenities, services, and locations that increase in value in correlation with the number of stars. A 3-star hotel under the category of Hotel Berbintang must have at least 25 rooms.
Requirements based on the size of the hotel
Since 2021, the Ministry of Tourism in Bali has implemented a new approach to business licensing called Risk-Based Business Licensing. This system assesses the risk level of businesses based on various factors, including the size of the hotel.
Here’s how the risk-level assessment requirements vary depending on the size of the hotel:
| Risk level | Number of guest bedroom units | Employee headcount | Total Building Size (m²) | Required licenses |
|---|---|---|---|---|
| Medium-low | 61 – 100 | 41 – 99 | 4,000 – 6,000 | Business Number Registry (NIB), Standard Certificate, Hygiene Certificate |
| Medium-High | 101 – 200 | 100 – 200 | > 6,000 – 10,000 | Business Standard Certificate, Business Permit |
| High | > 200 | > 200 | ≥ 10,000 | Business Standard Certificate, Business Permit |
Additional Certifications for Hotel Licensing in Bali
- Hygiene Standards: Hotels must demonstrate compliance with hygiene and sanitation standards to ensure guest safety and health.
- Safety Protocols: Certification may require proof of emergency procedures, fire safety measures, and evacuation plans.
- Proper Facilities: Hotels must show that they have adequate facilities such as proper waste management, clean water systems, and well-maintained infrastructure.
Get Assistance with Acquiring A Hotel License in Bali with Emerhub
Emerhub’s team of property experts is versed in the licensing process for foreign-owned hotels operating in Bali.
We ensure that your accommodation business remains fully compliant with local regulations.
Contact us via the form below and one of our advisors will get in touch with you!