Opening a Boutique Hotel in Bali as a Foreigner: PT PMA, Star Classification & TDUP Explained

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Opening a boutique hotel in Bali usually involves hearing words like PT PMA, TDUP, and KBLI far more often than “ocean view.”

Behind every successful boutique hotel is far more than great design and a beautiful location. Property zoning, company registration, hotel star classification, and tourism licensing all play an important role before the first guest checks in.

Fortunately, once these pieces fit together, the journey becomes much less intimidating than the list of acronyms first suggests. 


PT PMA Helps Foreigners Open a Boutique Hotel in Bali

Foreign investors generally operate a boutique hotel through a PT PMA (Foreign Investment Company), the legal business structure that allows foreign investment in Indonesia.

A PT PMA also provides a legal framework for holding certain land rights for business purposes, such as:

▪️ Right to Build (Hak Guna Bangunan/HGB) for constructing and owning buildings on land.

▪️ Right to Use (Hak Pakai), where permitted under Indonesian land regulations. 

Once the company is established, registration continues through Indonesia’s OSS-RBA system, including:

▪️ Business Identification Number (NIB).

▪️ Initial business licensing based on the selected business activities.

Establishing the appropriate company structure from the beginning helps create a solid foundation for the licensing process that follows. 


Hotel Star Classification Affects a Boutique Hotel in Bali

During company registration, accommodation businesses must first select the appropriate KBLI (Indonesian Standard Industrial Classification) based on the planned business activities.

For boutique hotel projects, this generally involves understanding three important concepts:

▪️ KBLI classification, which determines the company’s registered business activities and licensing requirements.

▪️ Hotel Star Classification, which establishes the operational standards, facilities, and services applicable to hotels.

▪️ Accommodation Category, as hotels and villa operations are regulated under different KBLI classifications.

Under the latest KBLI 2025 classification:

▪️ KBLI 55101–55106 — Hotel Activities (classified according to star rating).

▪️ KBLI 55203 — Villa Activities.

Selecting the correct KBLI from the beginning helps reduce licensing delays and supports a smoother registration process. 


TDUP Before Opening a Boutique Hotel in Bali 

Establishing a PT PMA and selecting the correct KBLI are important milestones, but they don’t automatically mean a boutique hotel is ready to welcome guests.

Before operations begin, accommodation businesses generally complete several stages of licensing under Indonesia’s risk-based business licensing framework, including:

▪️ Basic Requirements (Persyaratan Dasar), which may include Spatial Planning Conformity (KKPR), Environmental Approval, Building Construction Approval (PBG), and Certificate of Proper Function (SLF), depending on the project.

▪️ Business Licensing (Perizinan Berusaha) through the OSS-RBA system, including the Business Identification Number (NIB) and the applicable Standard Certificate or Business Licence based on the business risk level. 

▪️ Supporting Business Licences (PB UMKU), including the Tourism Business Registration Certificate (TDUP) and other sector-specific approvals where required.

The TDUP confirms that the business has fulfilled the applicable tourism business requirements and is authorised to operate as part of Indonesia’s tourism industry. Completing these licences before opening helps support long-term compliance and smoother business operations.


Open a Boutique Hotel in Bali with Seven Stones Indonesia

Opening a boutique hotel in Bali involves much more than registering a company. From zoning verification to PT PMA establishment, hotel star classification, and tourism licensing compliance, every stage plays an important role in building a successful hospitality business.  

Rather than managing separate legal, property, tax, immigration, and licensing advisors, Seven Stones Indonesia brings these services together under one roof. 

This integrated approach helps streamline the investment process while giving foreign investors a single point of contact throughout the project. 

Start the conversation with Seven Stones Indonesia before making important investment decisions. The right preparation from the beginning can save significant time, cost, and unnecessary complications later. 

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To maintain our professional standard, we have established a strong presence in the center of Jakarta and Bali, and are expanding to Lombok to serve you better. Visit us at:

Jakarta
Noble House, 9th floor unit 2B
Jl. Dr. Anak Agung Gde Agung, Kav E.4.2 no. 2
South Jakarta – 12950

Bali
Jl. Sunset Road No. 9a
Seminyak, Bali – 80361

Lombok
Opening Soon

We’re committed to being accessible. Find our offices in Jakarta, Bali and Lombok (soon), staffed with local experts who understand your unique needs. Also we extend our reach with our collaborative partners.

Seven Stones Indonesia
Jl. Sunset Road No.9a, Seminyak, Kec. Kuta, Kabupaten Badung, Bali 80361
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Noble House, 9th Floor, Jl. Mega Kuningan Barat, RT.5/RW.2, Kuningan, Jakarta 12950
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Jl. Toya Ning II, Ungasan, Kec. Kuta Sel., Kabupaten Badung, Bali 80361
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Jl. Nelayan No.9C, Canggu, Kec. Kuta Utara, Kabupaten Badung, Bali 80361
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Seven Stones Indonesia
Jl. Sunset Road No.9a, Seminyak, Kec. Kuta, Kabupaten Badung, Bali 80361
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Noble House, 9th Floor, Jl. Mega Kuningan Barat, RT.5/RW.2, Kuningan, Jakarta 12950
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Monday Co-Working
Jl. Toya Ning II, Ungasan, Kec. Kuta Sel., Kabupaten Badung, Bali 80361
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Name

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.