Are you a foreigner looking to rent out your villa in Bali on platforms like Airbnb or Booking.com? Before you begin, you will need a Pondok Wisata license to legally offer your property as a daily rental.
A Pondok Wisata is a type of accommodation license that allows you to rent out rooms in your house or villa to travelers. This gives tourists an affordable place to stay, while also offering a more personal, local experience by interacting with the homeowner.
Here’s our 2025 guide on how to get a Pondok Wisata license in Bali. Keep reading to understand the steps, requirements and benefits!
What Is a Pondok Wisata License?
A Pondok Wisata license permits you to rent out your property as a short-term rental in Indonesia. It’s specifically for small-scale accommodations like villas, guesthouses, or homestays.
You’ll need this license if you rent out your villa daily on Airbnb, Booking.com, or other platforms. Operating without the proper license can lead to fines, legal trouble, or even having your property shut down.
Why Do You Need a Pondok Wisata License?
The Pondok Wisata license ensures that your villa is legally registered as a short-term rental. This protects you from potential fines, legal complications, or shutdowns.
Additionally, it gives your guests peace of mind, knowing they’re staying at a licensed and registered property. So, make sure you secure the license before listing your property.
Pondok Wisata License Requirements
Here are the required documents when applying for Pondok Wisata permit:
- UKL-UPL: Environmental Management and Monitoring plan
- PBG (Persetujuan Bangunan Gedung): Building approval permit
- SITU/HO: Business location and disturbance permits
- SIM: Company Registration Certificate
- NPWPD: Local tax registration number
In addition, the applicant must be either an Indonesian citizen or foreigner operating under a PT PMA (Foreign Investment Company).
The application process requires full tax compliance, including monthly or annual tax reporting. If the property has more than five rooms, it falls under the Hotel Melati license category instead.
Renting to foreign guests also comes with a legal obligation: the property owner or manager must report each guest’s arrival to the police within 24 hours by submitting a passport copy to obtain a Surat Tanda Melapor (STM).
How to Get a Pondok Wisata License
Getting a Pondok Wisata license in Bali involves a few steps, but with the right guidance, it’s straightforward. Here’s how it works:
1. Application Process
You’ll apply for Pondok Wisata license through the local Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) office in the regency where your villa is located.
For example, for areas like Seminyak, Canggu, or Uluwatu (Badung Regency), you’ll need to visit the Badung DPMPTSP office.
Source: DPMPTSP Badung
This department handles licensing small-scale accommodation businesses, including Pondok Wisata permits.
Pro Tip: Many foreign investors work with a local real estate agent or legal advisor to help with the application and ensure everything is filled out correctly.
2. Location
Your villa must be located in a tourism-approved zone. Renting in residential-only areas may violate zoning laws.
| Zone | Purpose | Description & Activities |
| Green | Agricultural Land | Reserved for farming and cultivation. Building developments are highly limited. Any change of land use must be approved by the government. |
| Yellow | Residential Land | Designated for homes, villas, and apartments. Subject to height limits, building codes, and road access rules. May have limitations on short-term rental use. |
| Red | Commercial Land | Meant for business use like shops, offices, and other commercial operations. Must meet local regulations (e.g. signage, parking). Subdivided into neighborhood, tourism, and central business zones. |
| Pink | Tourism Land | Dedicated to tourism-focused operations like hotels, restaurants, and attractions. Offers more flexibility in design but may require environmental and cultural assessments. |
| Orange | Mixed Commercial & Residential | Supports both housing and business use. • Vertical Mixed-Use: One building with multiple functions (e.g. shop below, residence above). • Horizontal Mixed-Use: Separate residential and commercial buildings within the same area. |
3. Costs
The cost of obtaining the license depends on location and whether you hire professional help. On average, expect to pay between IDR 5 million to 15 million (approximately $350 to $1,000 USD).
4. Renewal
Your license is not a one-and-one deal. It is only valid for 5 years and must be renewed afterward. Renewal is usually easier than the first application, but you must ensure:
- All documents are up to date
- Your property remains compliant with zoning regulations
Tips for Foreigners Applying for a Pondok Wisata License
If you're a foreign investor looking to operate a short-term rental (like Airbnb) under a Pondok Wisata license, there are two legal pathways:
1. Register a PT PMA
The first method is registering a PT PMA (Foreign Investment Company) in Indonesia. This legal entity allows you to run a business officially in Indonesia, including property rentals.
Basic Requirements to Register a PT PMA:
- Minimum paid-up capital: IDR 10 billion (approx. USD 700,000)
- Articles of Association: outlines the company’s structure and business scope
- Legal business address: lease contract or proof of property ownership
- ID/passport copies of all directors and shareholders
- Passport photos (with white background) of all directors/shareholders
- Additional business permits depending on your operation (e.g., Pondok Wisata, tax number, building licenses)
Since foreigners cannot apply under a personal name, so setting up a PT PMA is essential to legally manage and monetize your villa.
2. Partnering with a Local Citizen
An alternative approach is partnering with an Indonesian citizen who acts as a nominee. The license would be issued under their name.
While this might seem easier, it carries high legal risk, especially in terms of ownership rights. Therefore, always remember to consult with a legal expert before entering a nominee arrangement. Draft a strong legal agreement to protect your investment as well.
Also Read: How Much Does It Cost to Rent a Villa in Bali?
Conclusion
That’s how to get a Pondok Wisata license in Bali (or Izin Pondok Wisata di Bali) that you can try in 2025! This permit is crucial if you want to rent your villa legally on platforms like Airbnb or Booking.com as a foreigner.
Although the process can be bureaucratic, it’s still manageable with the right help. If you’re ready to get started, or need help with the application process, we’re here to help!
Bali Villa Realty team will make sure your property is licensed, so you can confidently run your villa rental business legally and profitably. Click the button below to get a free consultation today.
