What Is Pondok Wisata Bali Homestay License? (Application Guide)

Are you a foreigner looking to rent out your villa in Bali on platforms like Airbnb or Booking.com? Before you get started, make sure you have a Pondok Wisata license.

This license legally allows you to offer your villa or guesthouse for short-term rentals.

In this guide, we’ll walk you through what the Pondok Wisata is, how to apply for it, and what you’ll need to run your rental business in Bali the right way.

Key Takeaways

• The Pondok Wisata license legally allows foreigners to run short-term rentals for small properties (up to 5 bedrooms).
• To apply, you need to meet several document requirements (environmental, building, business, and tax permits) and ensure your villa is located in the correct tourism-approved zoning area.
• Foreigners can apply through two main routes: by registering a PT PMA (foreign-owned company) or partnering with an Indonesian citizen—though the latter carries significant legal risks.
• The full licensing process, including inspections and approvals, usually takes 6 months to 1 year, and the license is valid for 5 years, allowing you to operate your villa rental business legally in Bali.

What Is a Pondok Wisata License?

Pondok Wisata license (or "Homestay Operational License") is the permit that let you use your property for a small rental properties, guesthouses, or homestays in Bali (with up to 5 bedrooms). People usually use this permits for operating a short-term vacation stays.

After obtaining this license, you can list your property in Airbnb, Booking.com, or other platforms. Operating without Pondok Wisata permit can lead to fines, legal trouble, or even having your property shut down.

Keep in mind that the Pondok Wisata is only for small-scale properties and homestays within the rental or villa management category. Larger villas or hotels (more than 5 bedrooms) require a separate hotel license.

Read More: Airbnb Business in Bali: Investor’s Roadmap to Success

Pondok Wisata License Requirements

Here are the required documents when applying for Pondok Wisata permit:

• UKL-UPL: The Environmental Management and Monitoring Report, showing how your property meets environmental standards.
• PBG (Persetujuan Bangunan Gedung) and SLF: The building and function certificates, confirming your villa is safe and approved for use.
• SITU or HO: Business operation permits required for running your villa.
• Company Registration Certificate (SIM): Proof that your business is legally registered.
• NPWPD: Local tax registration number, which identifies your company for regional tax purposes.

In addition, you need to make sure your property is in the correct land zoning. You can learn more about this in our dedicated article: Bali Land Zoning and Land Regulations Explained (2025)

How Can Foreigners Obtain a Pondok Wisata License in Bali?

If you want to invest in a Bali villa through short-term rental, there are two legal pathways:

1. Registering 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)

2. Partnering with an Indonesian 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.

Steps to Apply for a Pondok Wisata License

1. Check Property Ownership

Before anything else, make sure your property meets the ownership rules. Foreign investors must have a PT PMA (foreign-owned company) to apply.

The villa should sit on land with a Hak Guna Bangunan (Right to Build) or Hak Sewa (Leasehold) title, and there must be a valid agreement between the lessee and the landowner.

Tip: If you’re unsure about the documents, work with a local real-estate agent like Bali Villa Realty to make sure everything is legally ready.

Need a Bali Villa to invest in? Explore our curated listings here!

2. Choose the Right 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	Building is highly limited. You’ll need government approval to change land use.
Yellow	Residential Land	For homes, villas, and apartments. Some areas limit short-term rentals.
Red	Commercial Land	Business use such as shops or offices; must follow parking and signage rules.
Pink	Tourism Land	For hotels, villas, and restaurants; may require environmental or 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.

Read More: Which Area Dominated Bali’s Real Estate Market?

3. Submit Your Application

Next, get all the required documents ready: UKL-UPL, PBG, SLF, SITU/HO, Company Registration Certificate, and NPWPD. Keep in mind that full tax compliance is also required, including monthly or yearly tax reporting.

After that, file your application through the Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) 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: Google - DPMPTSP Badung

This office handles permits for small accommodation businesses such as villas and guesthouses.

4. Pay the Fees

The cost of obtaining the license depends on location and whether you hire professional help. On average, expect to pay between IDR 5 - 15 million (approximately USD $350 - $1,000).

Read More: How to Maximize Rental Yield for Your Bali Villa

5. Inspection and Approval

Once submitted, your application will be reviewed by local authorities. Officials may visit your property for inspection to confirm it meets all standards.

The full process usually takes 6 months to 1 year, depending on your area and paperwork completeness.

6. License Issuance and Renewal

When approved, you’ll receive your Pondok Wisata license, valid for 5 years. 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

7. Guest and Police Reporting

If you rent your villa to foreign guests, there’s an additional legal requirement: You or your property manager must report each guest’s arrival to the local police within 24 hours by submitting a copy of their passport.

This process generates a Surat Tanda Melapor (STM), which confirms the guest’s stay is officially registered.

Conclusion

That’s how to get a Pondok Wisata license in Bali (or Izin Pondok Wisata di Bali) that you can try! 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, no-obligation consultation today.

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