Understanding the Pondok Wisata Bali Homestay License

Are you considering setting up a homestay or short-term rental business in Bali? Then the Pondok Wisata Bali license will be essential for ensuring the legality of your operations. This article will provide an overview of the registration process and key requirements to ensure that your accommodation business is operated legally.

Overview of the Pondok Wisata Bali Homestay License

Also known as the Homestay Operational License, the Pondok Pondok Wisata is a mandatory license managing small rental properties and homestays in Bali. This building permit allows you to rent out your guest house or villa for commercial use, specifically for short-term vacation rentals of up to 5 bedrooms.

Remember that you cannot start renting out properties in Bali without applying for this license beforehand. Additionally, following the Governor’s recent proposal to restrict short-term rental platforms, this license has become a primary requirement for properties to remain active on Online Travel Agency (OTA) platforms.

It is also important to note that the Pondok Wisata also cannot be used for large properties or hotels. For those, you will require a hotel license. 

How Can Foreigners Apply For Pondok Wisata Bali? 

Registering a PT PMA limited liability company

If you are interested in applying for a Pondok Wisata license, you are required to register as a Perseroan Terbatas Penanaman Modal Asing (PT PMA) which is a standard private company. Specifically, you need to register as a PT PMA specializing in property management.

Here are the requirements to do so:

• Minimum paid up capital of Rp. 2.5 billion (around USD 150,000)
• Articles of Association outlining the company structure, purpose, and operating procedures
• Proof of registered business address such as your lease agreement or proof of ownership for the business address
• Copies of valid ID/passport for all company directors and shareholders
• Recent passport-sized photographs with white backgrounds of directors, shareholders, and company representatives
• Additional documents depending on your business type which include licenses and permits

Emerhub can help you navigate the complexities of setting up your rental company in Bali through our company registration service. Our team will ensure that you have the necessary licensing and will manage the application for you. 

Partnering with An Indonesian Citizen

As an alternative, you can make an agreement with an Indonesian citizen who will be appointed as the Nominee and property owner. Their name will be used to acquire the license which will be issued to them only. 

This is not a recommended solution for foreign investors as it is very difficult to protect your property rights and investments due to land rights in Bali belonging solely to your local investment partner, as per current property laws on the island. 

When pursuing this type of arrangement, it is highly suggested to seek legal advice in the due diligence process to protect yourself from potentially fraudulent investment agreements.

Key Requirements for Applying for the Pondok Wisata in Bali

When it comes to registering for a Pondok Wisata license, Emerhub’s building permit application service can help you identify the required documents based on your planned activities. Below you will find the most common requirements for foreign applications for the Pondok Wisata in Bali:

• Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup (UKL – UPL), which is the Environmental Management and Monitoring System Document
• Persetujuan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF) documents for building approval and construction
• Objek Izin Tempat Usaha (SITU) / Objek Izin Gangguan (HO) documents for operational purposes
• Company Registration Certificate
• Nomor Pokok Wajib Pajak Daerah (NPWPD) number which is your company’s registered tax number

Zoning Regulations in Bali

Before registering for Pondok Wisata, you must ensure compliance with land zoning regulations in Bali, as the building license is only valid in certain areas. You can check the zoning of your property by going to the local Badan Pertahanan Nasional (BPN) office or through their online portal. The specific regulated land zones are broken down into colors as detailed below:

Zone	Purpose	Details & Activities
Green	Agricultural Land	Farming and agricultureBuildings are heavily restrictedRezoning requires government approval
Yellow	Residential Land	For housing development (villas, private residences, apartments)Have height restrictions, local building codes, minimum road distancesHas restrictions on short-term rentals
Red	Commercial Land	For business activities (retail shops, offices, commercial businesses)Buildings required to comply with local business regulations (ex: signage requirements, parking regulations)Split into 3 categories: neighborhood commercial, tourism commercial, central business district
Pink	Tourism Land	For tourism-related businesses (hotels, recreational facilities, restaurants)Building regulations are more flexibleRequires assessments on the environmental and cultural impact of your buildings
Orange	Commercial and Residential Land	Allows both commercial and residential buildings to co-exist in the same area.Vertical Mixed-Use Land: Multiple businesses/activities in one building (ex: storefront on the ground floor and a residential apartment on higher floors)Horizontal Mixed-Use Land: A mix of residential and commercial buildings within the same area

How to Register for Pondok Wisata Bali

Emerhub can manage the Pondok Wisata Bali documentation and application process in your stead. Below you will find the key steps that we will help you navigate to secure your homestay license:

1. Ascertaining Property Ownership

Foreigners must have a PT PMA to get a Pondok Wisata License and the property must be held under Hak Guna Bangunan or Hak Sewa/Leasehold Title with an agreement between the lessee and landlord. Our team of local experts can assist you in obtaining the right documentation needed.

2. Application Submission

Submit your application for Pondok Wisata Bali at the local tourism office or any local regulatory body depending on your location. This includes the Bali Government Tourist Information Centre or the Tourist Department. 

3. Approval and License Issuance

Your application will be thoroughly reviewed and a property inspection will be conducted by the local government officials. The entire process can take approximately 6 months to a year.

Emerhub’s team of local consultants is well-versed in traversing the Bali real estate market. Our experts can handle the registration process for you and offer key insights for ensuring compliance for your guesthouse or homestay business. Our property management team can also assist you if you are currently looking to purchase a villa or guesthouse.

Interested in setting up a short-term rental business in Bali? Contact us via the form below to get started!