Last Updated: 24 February 2026
The regulatory environment for short-term villa rentals in Indonesia, including Bali, is currently evolving. Online Travel Agents (OTAs) such as Airbnb and Booking.com have indicated that, in line with government regulations, additional compliance requirements may become relevant in the near future. These potential changes could affect the type of documentation required to keep properties listed on these platforms.
Our Direct Industry Experience & Research
At this moment, there is still a lot of mixed information circulating in the market about what will or will not be required. To gain clearer insight, House of Reservations has been in contact with senior representatives from other property management companies, legal advisors, Airbnb and Booking.com directly, as well as government-related parties. We also attended an offline meeting on 11 February 2026, organized by Airbnb in collaboration with government representatives, where these topics were discussed in more detail.
It is also important to note that different government departments do not yet appear to be fully aligned on how these regulations will be implemented in practice. As a result, discussions between the short-term rental industry, OTAs, and government officials are still ongoing, and certain aspects may continue to evolve in the coming weeks.
What Does This Mean for Villa Owners in Bali?
PT PMA and KBLI for Foreign Owners
For foreign owners, OTAs have indicated that properties may be expected to be operated under a PT PMA (foreign-owned company) that includes a KBLI (Indonesian Standard Business Classification) which allows short-term accommodation rental.
Based on information shared by government representatives and discussed during the offline seminar on 11 February 2026, the following KBLI codes are currently considered relevant for short-term accommodation activities:
- 55110 - Hotel Bintang
- 55120 - Hotel Melati
- 55130 - Pondok Wisata
- 55191 - Penginapan Remaja
- 55192 - Bumi Perkemahan
- 55193 - Villa
- 55194 - Apartemen Hotel
- 55199 - Penyediaan Akomodasi Jangka Pendek Lainnya
- 55900 - Penyediaan Akomodasi Lainnya
(Note: Interpretations differ regarding 55900; some sources suggest this may apply to short-term accommodation, while others indicate it may relate to longer-term or management-related activities). For reference, these KBLI categories are published by the Indonesian Ministry of Tourism via the following form: https://industri.kemenpar.go.id/form-pemilik.
NIB Requirement for OTA Listings
Based on current discussions, OTAs have indicated that they may request an NIB (Nomor Induk Berusaha - Business Identification Number) for each listed property.
- This NIB is expected to belong to the legal entity under which the property is operated.
- This means that the NIB of a third-party operational management company is not expected to be applicable for individual owner listings.
- Each property would therefore need to be aligned with the owner's own legal entity.
Guidance by Owner Type
Local Owners (WNI)
Local (WNI) owners are generally able to apply for an NIB Pribadi with a KBLI that allows daily rentals. This process is relatively straightforward compared to foreign ownership structures. We recommend that local owners speak with their account manager for step-by-step guidance. We can also refer you to a local contact who can assist with the application process if needed.
Foreign Owners with a PT PMA
If you already operate under a PT PMA, we recommend reviewing whether your company includes one of the KBLI codes listed above. If not, it may be worth consulting the agent or legal advisor who assisted with your company setup to explore whether your KBLI can be amended or extended. Some agents have indicated that KBLI 55110 (Hotel Bintang) may be applicable for villas located in certain zoning categories (such as pink zones). For example, Bali Solve has indicated they can assist with this process.
If certain KBLI options are currently not available for your PT PMA setup, it may be sensible to wait until there is further clarification on the applicability of KBLI 55900, as more information is expected to be released in the coming weeks.
Foreign Owners Without a PT PMA
Foreign owners who do not yet have a PT PMA may need to consider establishing one in order to align with potential OTA and regulatory requirements. A licensed agent or legal advisor can provide guidance on:
- Setup process
- Estimated costs
- Ongoing obligations
- Tax considerations
As each situation is different, House of Reservations cannot advise on the most suitable structure for your specific case.
Airbnb Updates & Indicative Timeline (February 2026)
Since 22 February 2026, Airbnb has started requesting NIB and KBLI information from hosts. Airbnb is currently offering KBLI 55900 as one of the selectable options in their system and has indicated that this KBLI is approved by the Ministry of Tourism. However, other sources have suggested that KBLI 55900 may only be applicable for long term rental. As soon as more clarity is provided by the relevant authorities, we will share an update.
Indicative Timeline:
OTAs have indicated that listings without a valid NIB and relevant KBLI may potentially be subject to delisting from around 31 March 2026 onwards. We therefore recommend that villa owners start reviewing their legal and business setup well in advance to reduce the risk of any potential disruption to their online listings.
Frequently Asked Questions (FAQ)
What happens if my property does not have a valid NIB and KBLI?
OTAs have indicated that listings without a valid NIB and relevant KBLI may potentially be subject to delisting from around 31 March 2026 onwards.
Can I use my property management company's NIB for my Airbnb listing?
No, the NIB of a third-party operational management company is not expected to be applicable for individual owner listings. The NIB is expected to belong to the legal entity under which the property is operated.
Is KBLI 55900 sufficient for short-term rentals?
Airbnb currently offers KBLI 55900 as an option and indicates it is approved by the Ministry of Tourism. However, there are differing interpretations; some sources suggest it may apply to short-term accommodation, while others indicate it may relate to longer-term or management-related activities.
Important Disclaimer
All information shared in this article is based on:
- Industry discussions
- Platform briefings
- Meetings with OTA and government representatives
- Publicly available information
This content is provided for general informational purposes only and should not be considered legal, tax, or regulatory advice. Regulations and their interpretation may change, and different authorities may apply rules differently in practice. House of Reservations does not accept any responsibility for decisions made by property owners based on this information. We strongly recommend that each owner verifies their individual situation with a qualified legal or tax advisor before taking any action.
We Will Keep You Updated
As discussions between the industry, OTAs, and the government are ongoing, we will continue to monitor developments closely and share updates as soon as more concrete and finalized information becomes available. If you have questions, feel free to reach out to our team.
