What is Bali’s licensing maze?
The Bali licensing maze refers to the complex mix of permits required to legally operate villas, hotels, and restaurants.
Every project needs:
- Legal entity: PT PMA with correct KBLI codes via OSS-RBA.
- Tourism license: TDUP/Standard Certificate for accommodation and restaurants.
- Building permits: PBG + SLF (replacing IMB).
- Environmental approvals: AMDAL, UKL-UPL, or SPPL.
- Health certificates: sanitation permits from the Health Office.
- F&B extras: SIUP-MB if serving alcohol.
Without them, fines or closure are likely.
For broader context on investor pitfalls, see our Bali Real-Estate Bubble analysis.
Why do foreign investors get lost in the Bali licensing maze?
Most mistakes stem from three issues:
- Using nominee structures that invalidate licenses.
- Applying for the wrong accommodation license (villa vs starred hotel).
- Skipping environmental or sanitation permits to save time.
It may look cheaper upfront, but in Bali, shortcuts usually cost the business later.
Step-by-step: Navigating the Bali licensing maze for hospitality businesses
1. Set up the right company (PT PMA)
Register in OSS-RBA with the correct KBLI codes. Obtain NIB and tourism Standard Certificates.
2. Tourism license (TDUP/Standard Certificate)
Required for accommodation and restaurants. Registered via OSS-RBA. For F&B, the process is outlined by Cekindo’s restaurant licensing guide.
3. Accommodation permits
- Pondok Wisata: for small villas and homestays. More details in GBG Indonesia’s homestay license guide.
- Starred Hotel License: for hotels with multiple keys and amenities.
4. Building permits (PBG + SLF)
PBG approves design/construction, SLF confirms safe operation.
5. Environmental approvals
- AMDAL: large projects.
- UKL-UPL: medium risk.
- SPPL: lower risk. See Indonesia’s environmental law framework for thresholds.
6. Health and sanitation
Obtain a hygiene certificate from the Health Office before opening.
7. Restaurant/bar extras
- SIUP-MB: mandatory for serving alcohol.
- Music rights and halal readiness depending on concept.
For insights on balancing compliance with growth, see our Managing Destination Overcrowding in Bali.
The five classic mistakes in the Bali licensing maze
- Nominee ownership structures – invalidate permits.
- Wrong license type – villas operating as residential houses.
- Skipping environmental approvals – inspectors will block operations.
- No hygiene certificate – restaurants shut down during inspections.
- Serving alcohol without SIUP-MB – fines and seizure.
Licenses by business type in Bali
| Business Type | Core Licenses | Common Add-ons |
|---|---|---|
| Villa/Homestay | PT PMA, NIB, Pondok Wisata, PBG + SLF, SPPL/UKL-UPL, sanitation certificate | Music licensing if hosting events |
| Hotel (Starred) | PT PMA, NIB, Starred Hotel license, PBG + SLF, AMDAL/UKL-UPL, sanitation certificate | SIUP-MB, spa license |
| Restaurant/Bar | PT PMA, NIB, TDUP/Standard Certificate, PBG + SLF, sanitation certificate | SIUP-MB, music rights, halal readiness |
Timeline and sequencing: how to start licensing in Bali
- Incorporate PT PMA, secure NIB via OSS-RBA.
- Verify zoning and select correct accommodation license.
- Apply for PBG + environmental approvals.
- Register TDUP/Standard Certificate in OSS-RBA.
- File for sanitation certificate and SIUP-MB.
- Finalize SLF before opening.
Recent changes in the Bali licensing maze
- PBG replaced IMB (Job Creation Law reforms).
- Risk-based OSS-RBA system introduced.
- GR 28/2025 updates timelines and verification rules.
Foreign investors relying on outdated advice often miss these changes.
FAQ
1. Do I need TDUP for a restaurant inside a hotel?
Yes—restaurants are separate tourism activities under OSS.
2. Pondok Wisata vs Hotel License: which one?
Villas/homestays use Pondok Wisata; multi-key hotels require a starred license.
3. Can small villas skip environmental approvals?
No—most still require SPPL or UKL-UPL.
4. Is IMB still valid?
No—PBG replaced IMB, and SLF is required before operations.
5. Who issues the sanitation certificate?
Local Health Office (Dinas Kesehatan) in your regency.
How to license a Bali hospitality business in 5 steps (HowTo Schema)
- Incorporate PT PMA and register with OSS-RBA.
- Obtain TDUP/Standard Certificate for tourism activities.
- Secure PBG + environmental approvals (AMDAL/UKL-UPL/SPPL).
- Apply for sanitation certificate with Health Office.
- Get SIUP-MB if serving alcohol.
Conclusion
The Bali licensing maze is real—and most foreign investors underestimate it. Wrong licenses, skipped approvals, and nominee setups all risk fines, closure, or invalidation.
With the right structure—clean PT PMA, matched accommodation license, PBG + SLF, environmental and sanitation compliance—your investment becomes safe and bankable.
Zenith Hospitality Global ensures compliance by mapping, sequencing, and executing licenses across Bali’s regulatory environment.
Call to Action
Don’t get lost in Bali’s licensing maze.
Zenith Hospitality Global helps investors secure permits, structure ownership, and stay compliant.
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