Pondok Wisata License: Your Key to a Rental Business in Bali

by BVR Property Team
01 December 2023

Bali is known to be one of the world’s favorite holiday destinations for travelers from all over the globe. Besides that, Bali also has a very diverse vacation rental business. Today, we’ll discuss the commercial rental license required to run and operate a vacation home in Bali – Pondok Wisata License (Homestay Operational License).


Dubbed as top 3 travel destinations nearly every year, Bali is also known for its opulent and attractive property investment market. Vacation rental business in Bali promises a high yield of ROI, remembering Bali is visited by millions of people every year.


Villas that are being used for daily rentals needs a valid Pondok Wisata License (alos known as Homestay Operational License) to make the business run legally. Getting this license is not complicated as long as the property requirements are met.


In this article, we will discuss about what Pondok Wisata is, required documents to obtain a villa rental license, and how to apply for such a license.


About Pondok Wisata License

Pondok Wisata (Homestay Operational License) is a building permit that allows you to operate your property for vacation rental business purpose in Bali.


Pondok Wisata License is required for villas with up to three units (under the older license) or up to five bedrooms (under the newer license). If the property is larger than that, it requires full hotel license, known as Hotel Melati License.


As the scale of property covered by Hotel Melati License is larger, there are some additional legal restrictions to obtaining it.


Pondok Wisata License is can only be under the name of an Indonesian citizen or a valid PT PMA with scope for villa management business. The duration of this license is 5 years, and the holder of the license can extend the duration.


However, should the license in the name of an Indonesian citizen the license is more permanent.


The only way for foreigners to request Pondok Wisata License is they must set up PT PMA in order to request for obtaining it.


For Indonesian citizens, they can request to obtain Pondok Wisata license without having a company. Most the time, when licenses are applied for the PGB (previously, IMB – Building permits), this villa rental license application is done simultaneously. 


Homestay Operational License can only be issued in “tourism zone” area.


So, to make sure that your property can obtain the legal license required to do daily rentals, you have to double check that you ITR (Zoning) are within the commercial zones.


Pondok Wisata Required Documents

If you want to run a vacation rental business and request Pondok Wisata License for your villa, here are the 5 essential documents required, such as:

- PBG documents (Building approval documents).

- UKL and UPL documents (environmental management and monitoring system documents).

- Company Registration Certificate (SIM).

- SITU/HO documents.

- NPWP number (tax number).


6 Steps in Applying for Pondok Wisata License

homestay in bali

There are some steps you must follow to obtain Pondok Wisata License. Here are six steps you need to pay attention when applying for this villa rental license.


1. The Ownership of The Villa

If the villa’s holder is an Indonesian person, he/she must have the villa through:

- Hak Milik,

- Hak Guna Bangunanor

- Hak Sewa/Leasehold Title (as long as there’s a deal between lessee and lessor/landlord in the clause) – then you are able to register the licenses and PGB building permits in your respective landlords name.


However, if the owner is a foreigner with PT PMA, he/she must have the villa through:

- Hak Guna Bangunanor

- Hak Sewa/Leasehold Title (as long as there’s a deal between lessee and lessor/landlord in the clause).


2. Property's Standards

Make sure that the villa follows local government’s standard.


3. Required Documents

Prepare all required documents for applying a Pondok Wisata License so that the process runs seamlessly.


4. Submit the Application

You can submit the application for Homestay Operational License to the local tourism office.


5. Wait for Approval

After you submit your application, it take time to get the approval. There’s waiting period for your application to be reviewed and the villa may be inspected.


6. Obtain Pondok Wisata License

If all criteria are completed and the local tourism office accept your application, you will obtain your Pondok Wisata License.


Getting Pondok Wisata License takes a bit of time and may require some effort should you apply for it.  


So, please make sure you have completed all the criteria’s so that your process of getting the license is easier. Besides that, you can seek assistance from legal advisor or notary to help you getting the villa rental license.


Our Properties with Pondok Wisata License

There is an easier way for you who wants to run a vacation rental business in Bali.


Besides preparing Pondok Wisata requirements for obtaining “Villa Rental License”, an alternative approach is to directly acquire ownership title such as Hak Guna Bangunan or Hak Sewa/Leasehold Title for a villa that already holds Pondok Wisata License.


This is generally applied for at the same time at the PBG (previously, IMB) on most existing properties and makes it easier for most investors to not have to run through the process of application again.


Here are some of BVR hottest villas that already holds Pondok Wisata you can have through Hak Guna Bangunan or Hak Sewa:


- BLI1774 – Impressive Freehold Gem in Batu Bolong, Canggu.

- BLI1713 – Wonderful Contemporary Villa in Ubud.

- BLI1701 – 4 Bedroom Luxurious Villa in Seminyak.

- BLI1632 – Aesthetic Apartment in Nusa Dua.

- BLI1630 – Luxurious Beachfront Apartment in Nusa Dua.

- BLI1603 – Tropical Luxurious Villa in Seminyak.

- BLI1550 – Luxurious Tropical Hidden Gem Villa in Bukit.

- BLI1546 – Luxurious and Peaceful Resort in Canggu.

- BLI1507 – Tranquil Villa in Singaraja, Bali.

- BLI1363 – Beachfront Property in Bondalem, North Bali.


Nevertheless, it is important to bear in mind that you can engage in a vacation rental business only if you have the title (Hak Guna Bangunan or Hak Sewa) through PT PMA.


In another way, you can have the villa managed by a professional management company that holds the relevant company structure to run rentals.


As an individual without a valid company or valid work permit in Indonesia, running a rental villa is illegal. So make sure you have your bases covered.


Ready to Invest in Bali?

Bali is one of the most promising places in Indonesia for everyone who wants to run a vacation rental business. If you’ve a villa that you want to operate as a vacation rental business, make sure that the villa has a villa rental license called Pondok Wisata.


Pondok Wisata License allows you to run a rental business for your villa. If you’re a foreigner, you only can apply this license for your villa if you possess the villa title (Hak Guna Bangunan or Hak Sewa) through PT PMA, or as most villa owners, the licence can be in your landlords name which makes it easier.

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