What business licences does a villa need before it can be rented to tourists in Bali?

This guide covers the business licence. Owning the land and the building, the company that holds them and the tax on rental income are separate questions; links at the end.

Renting to tourists is a tourism business

The Tourism Law lists the provision of accommodation (penyediaan akomodasi) as a tourism business, and a tourism business must hold a business licence (Perizinan Berusaha) from the central or regional government (UU 10/2009 Articles 14(1)(f) and 15(1), as amended by UU 6/2023).

Pick the right KBLI code

Every business activity is registered in OSS under a code from the standard business classification, KBLI 2020 (PP 28/2025 Article 1 point 20). The codes for short-stay accommodation that matter for a Bali villa are:

KBLI	Name	What it covers (KBLI 2020)
55193	Vila	Private houses rented specifically to tourists, with their facilities, and run by the owner
55130	Pondok wisata	A home stay: a house lived in by its owner, part of which is let by the day by an individual, so guests share the owner’s daily life
55199	Other short-stay accommodation	Bungalows, cottages, motels and guesthouses not covered by 55191 to 55194

Choose the code that matches how the property will actually be used. A code chosen for convenience can mean the wrong standards, or a licence for something other than what you run.

What the risk level means

PP 28/2025 rates each business activity as low, medium-low, medium-high or high risk (Article 128). The licence follows the rating:

• Low risk: an NIB, which is both the business’s identity and its licence (Article 130).
• Medium-low risk: an NIB and a standard certificate (Sertifikat Standar), which is the business’s own statement that it meets the business standard. The standard must be met while operating and is checked during supervision (Article 131).
• Medium-high risk: an NIB and a standard certificate that is verified before the business may operate (Article 132).
• High risk: an NIB and a licence (izin) (Article 133).

The villa row in PP 28/2025

Annex I.L (tourism sector) of PP 28/2025 sets, for KBLI 55193, Villa:

• Risk level: medium-low.
• Licence: NIB and standard certificate, issued automatically.
• Obligations: hold a health fitness certificate (Sertifikat Laik Sehat), and hold a self-assessment of readiness to apply the villa business standard, covering facilities, organisation and staff, service, the product, and the management system.
• Business scale in the row: micro, small and medium.
• Authority: the regent or mayor (Bupati/Walikota).

The rows for 55130 (pondok wisata) and 55199 (other short-stay accommodation) are also medium-low risk with an NIB and a standard certificate, and also require the health fitness certificate.

The villa row lists micro, small and medium businesses. A PT PMA is treated as a large business (see PT PMA for property investors). Ask a company-setup firm which code and licence route OSS gives your company before you rely on the table above.

Basic requirements come first

Before the business licence, PP 28/2025 sets basic requirements tied to the location: spatial-use conformity (KKPR), the environmental requirement (PL), and the building approval (PBG) and certificate of fitness for use (SLF) (Article 12(1)). For a business that needs neither an AMDAL nor a UKL-UPL environmental document, the environmental requirement takes the form of an SPPL statement (Article 8(3)(b)).

• KKPR and zoning: see how to check land title and zoning.
• PBG and SLF, including that the building’s function must match its use: see building permits: PBG and SLF.

Questions to ask before you rent out

• Which KBLI code is registered on the NIB, and does it match how the villa will be run?
• Has the standard certificate been issued, and is the self-assessment on file?
• Is there a current health fitness certificate?
• Does the PBG show a function that allows short-stay accommodation, and is there an SLF?
• Who registers and pays the regional tax on accommodation? See tax on villa rental income.

Who does this work

• Company setup firms register the business and its KBLI codes in OSS.
• Permit agents handle the KKPR, PBG and SLF.
• Property and rental managers run the villa once it is licensed; ask which licences they expect you to hold.
• Tax and accounting firms handle registration for tax.