Indonesian Political, Business & Finance News

Bali's Community Homestays Call for Extension on Licensing Deadline

| Source: ANTARA_EN | Regulation
Bali's Community Homestays Call for Extension on Licensing Deadline
Image: ANTARA_EN

● Discussions between ATTIA and the Ministry of Tourism in Jakarta highlighted several technical and procedural challenges affecting the speed of the registration process.

● Homestay owners shared the challenges faced by local operators in navigating a process that is quite complex and involves multiple levels of government.

Jakarta (ANTARA) - Representatives from the Asia Travel Technology Industry Association (ATTIA), including major online travel platforms operating in Indonesia, met with officials from the Ministry of Tourism (MOT) in Jakarta to discuss the implementation of accommodation licensing requirements for short-term rental providers.

Industry Affirms Support for Government Compliance Objectives

ATTIA member platforms reaffirmed their support for the Indonesian government’s objective of strengthening regulatory compliance across the country’s tourism sector. Online travel platforms that are part of ATTIA support the Ministry of Tourism’s direction requiring all accommodation providers to hold the necessary business licences.

“Our members are committed to working constructively with the Ministry of Tourism, provincial authorities, and local governments to ensure smooth and effective implementation. We support feasible and proportionate regulations for operators to help drive Indonesia’s broader tourism objectives,” said Mark Chan, Managing Director of the Asia Travel Technology Industry Association.

ATTIA also expressed appreciation for the government’s engagement with the industry to date, including the constructive technical discussion held in Jakarta this week.

Practical Challenges Affecting Registration Pace

The discussion in Jakarta focused on practical challenges accommodation providers face in navigating the current registration process. Feedback from ongoing engagement with operators and industry stakeholders indicates that many accommodation providers are actively seeking to comply, though a number of technical and procedural hurdles continue to affect the pace of registration.

These challenges include evolving requirements and processes within the Online Single Submission (OSS) system, uncertainty surrounding the application of updated KBLI classifications, and the respective roles of regional and national authorities in the registration process, which continue to be clarified.

At the same time, platforms and government agencies have been working to align on practical mechanisms for verifying host registration data in a manner that is technically accurate, secure, and scalable across the sector.

Homestay Owners Seek Clearer Instructions

Kadek Adi Putra, a homestay owner from Banjar Lungsiakan in Ubud who owns several homestays and manages around 20 properties on behalf of local owners listed across various online travel platforms, shared his perspective on the role of homestays in Bali’s tourism ecosystem.

“Many homestay owners genuinely want to comply with licensing and tax requirements. However, the 31 March deadline gives limited time for small operators to navigate processes that can sometimes be complex and involve different levels of government. With clearer guidance and sufficient time, most homestay owners would be able to complete the process while continuing to support local livelihoods and communities,” Kadek said.

Managing homestays has also allowed many Balinese families to build flexible livelihoods while continuing to fulfil cultural and community responsibilities. In Bali, where participation in temple ceremonies and village activities remains an important part of daily life, homestays provide an income source that can be balanced with these traditions. The economic benefits also extend beyond individual families, supporting local drivers, cleaners, freelance spa therapists, and other service providers in the community.

“Homestays have long been part of Bali’s tourism story, allowing visitors to experience Balinese family compounds and local culture in a way that is different from hotels. Online travel platforms simply help connect these local homes with travellers from around the world,” he added.

Adequate Timeline and Coordination Remain Key

ATTIA underscored that the success of this regulatory initiative will depend on two key factors: a workable timeline for implementation and effective coordination between industry and government stakeholders at both national and regional levels.

To avoid unintended impacts on local livelihoods and maintain visitor confidence in Indonesia’s tourism sector, ATTIA noted that the implementation process should allow sufficient time for accommodation providers to complete registration while ensuring clear coordination among relevant authorities.

ATTIA looks forward to continuing its constructive dialogue with the Ministry of Tourism and all relevant stakeholders to support a regulatory framework that strengthens Indonesia’s tourism sector while supporting the operators and platforms that underpin it.

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