All accommodations listed on online travel agencies must have necessary business licenses by March 31, Minister of Tourism Widiyanti Putri Wardhana said on her Instagram account.

Widiyanti said the move seeks to ensure Indonesia’s tourism sector keeps growing, to prevent tax evasion, and to provide a fair environment for all business operators in the tourism sector.

The government expects all operators to start processing the required permits, she elaborated.

The new regulation came after the governor of Indonesian resort island of Bali proposed to halt all short-term rentals including those listed on Airbnb, as the provincial government was losing regional tax revenue.

Indonesia, the largest economy in Southeast Asia, welcomed 15.39 million foreign visitors in 2025, exceeding its target of 14-15 million arrivals.

Indonesia expects to receive up to 17 million foreign visitors this year, representing an 11% increase year-on-year.