Entering the accommodation sector in the Province of Bali offers both exciting opportunities and regulatory challenges.
Based on our practical experience assisting foreign clients in Bali’s hospitality sector, this overview is designed to help investors understand what actually matters to operate legally, safely, and sustainably.
Depending on the investor’s intended business plan and level of commitment, there are several ways to participate in Bali’s accommodation sector.
However, for foreign investors who wish to directly inject capital and carry out business activities in Indonesia, our strong practical recommendation is to establish a limited liability company (Perseroan Terbatas or “PT”).
A PT serves as the most secure and compliant vehicle for investment. It can legally own and control essential business assets, such as land, buildings, intellectual property, and operational facilities, and acts as the formal entity responsible for applying for and maintaining all required business licenses.
This structure ensures that the investor’s capital, operations, and legal standing are properly protected under Indonesian law.
The sections that follow outline the practical steps needed to structure, license, and operate an accommodation business in Bali.
By approaching the process correctly from the start, foreign investors can reduce regulatory risks, avoid common pitfalls, and establish a solid foundation for long-term operation within Bali’s accommodation sector.
The full operational framework and compliance details are available in the official document attached below.