Unlicensed Accommodations Set for Removal from Online Platforms Starting June 2027

The government is preparing a major crackdown on accommodations and villas operating without business permits. Starting 1 June 2027, unregistered accommodations risk being removed from online travel agency (OTA) platforms. Tourism Minister Widiyanti Putri Wardhana stated that the policy is based on Government Regulation No. 28 of 2025, which mandates all tourism businesses to have official permits. The government has noted that many accommodation businesses operate without legal status and are not registered in the tax system. “Many tourism businesses lack permits, which also affects revenue for both central and local governments,” Widiyanti said at a press conference at the Ministry of Tourism on Tuesday, 26 May 2026. The Ministry of Tourism is now preparing an API-based verification system linked directly to Online Single Submission (OSS) data and OTA platforms. This system will enable the government to instantly verify the legal status of accommodations listed on booking apps. “We have given a 12-month period from 1 June 2026 to 1 June 2027. From 1 June 2027, the system will automatically verify which villas or accommodations are licensed or unlicensed. Those without permits must be delisted from 1 June using the API process,” Widiyanti said. She added that the move follows numerous complaints from the hotel industry about declining occupancy rates due to competition from illegal villas offering cheaper rates. “We have received many reports that hotels’ occupancy rates have dropped as tourists increasingly choose cheaper villas, which often lack permits and evade taxes,” Widiyanti said. The government believes restructuring the accommodation business ecosystem is necessary to ensure fair competition. The move also aims to improve tax compliance in the tourism sector. “With the regulation of accommodation businesses, we expect all OTAs to only list licensed establishments that pay taxes, creating a level playing field for other licensed players such as hotels,” Widiyanti said.