The Indonesian government is stepping up efforts to regulate unlicensed short-term accommodation, particularly villas and alternative lodging properties, following concerns over tax compliance, consumer protection and growing competition with licensed hotels.
Rather than relying on temporary enforcement operations, the Ministry of Tourism (MoT) is introducing a technology-driven approach focused on online distribution channels.
Speaking at a press conference in Jakarta, tourism minister Widiyanti Putri Wardhana said the policy is aimed at improving governance and creating a more balanced tourism industry.
The move follows complaints from hotel operators about declining occupancy rates amid the rapid growth of short-term accommodation offered at lower prices.
According to Widiyanti, many of these properties operate without the necessary licences or tax obligations, creating an uneven operating environment within Indonesia’s hospitality sector.
To address the issue, the MoT is working with nine OTA partners: Airbnb, Traveloka, Trip.com, Tiket.com, Booking.com, Agoda, Expedia, RedDoorz and OYO.
The MoT has also conducted licensing and outreach programmes across five priority destinations – Jakarta, West Java, Yogyakarta, Bali and West Nusa Tenggara – alongside coaching clinics and merchant verification initiatives.
Data as of May 20, 2026, showed a nearly 47 per cent increase in the number of short-term accommodation businesses registered with Indonesian business registration numbers (NIB) in the country’s OSS licensing system across eight tourism-related business classification (KBLI) categories, compared with March 31, 2025.
Villa accommodation recorded the strongest growth, increasing 76 per cent over the same period.
A key component of the initiative is the development of an application programming interface (API)-based verification system linking OTA platforms with Indonesia’s OSS business licensing database.
Rizki Handayani, deputy for industry and investment at the MoT, said: “The system is designed to replace the current manual verification process, which involves cross-checking large volumes of OTA and government licensing data one by one.”
Under the new system, accommodation operators will be automatically verified before being allowed to list on OTA platforms.
The integration is scheduled to begin in June 2026 and become fully operational by July 2027.
Widiyanti stated: “Starting June 1, 2027, unlicensed accommodation can be automatically identified and delisted through the API system.”
Several OTA platforms have already begun displaying NIB and KBLI information on accommodation listings to improve transparency for travellers.
So far, the government has identified around 1,600 accommodation operators being marketed on OTA platforms without the required licences.
Those businesses could face delisting from August 1, 2026, if they fail to complete the necessary permits during the transition period.
Under the policy, OTAs will be required to notify merchants and provide a two-month window for them to clarify their status or comply with licensing requirements before listings are removed.
Officials also said travellers affected by future delistings will be managed according to the policies of the respective OTA platforms.
At the same time, the government has instructed OTA platforms to stop accepting new accommodation merchants without valid business licences to prevent further growth in unlicensed listings.
