Open a Hotel in Indonesia

Updated on Monday 10th January 2022

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Indonesia relies on tourism, which is one of the greatest contributors to the country’s economy. Among the tourism facilities which have important profits on an annual basis are Indonesian hotels. This is one of the reasons for which many foreign citizens move to Indonesia to start businesses in tourism.

Foreign investors are welcome to invest in tourism in Indonesia and they can set up hotel businesses here by following special regulations. One of these rules refers to investing a specific amount of money in the business.

Below, our Indonesia company incorporation agents explain the requirements related to opening a hotel in this country. For those interested in moving to the country, we can give more details on how to immigrate to Indonesia.

Types of accommodation businesses in Indonesia

There are several types of accommodation establishments which can be registered in Indonesia. These are categorized into:
  •           bed and breakfast businesses with less than 5 rooms which can be set up by sole traders;
  •        non-starred hotels which require a local partner, however, the foreign investor will be the majority shareholder in the company;
  •           starred hotels which are subject to special licensing requirements in Indonesia;
  •           resorts which can imply operating various types of activities – Bali is one of the most famous regions in Indonesia where resort can be found.

Our local consultants can help foreign investors who want to open any of the hotel businesses mentioned above.

Requirements for opening a hotel in Indonesia

Opening a hotel in Indonesia implies obtaining various permits and licenses, among which:
  •           an operational license must be obtained by small accommodation businesses;
  •           a Melati hotel license is required for medium-sized hotel businesses in Indonesia;
  •           a principal license is required for opening 3 to 5 star-hotels in Indonesia;
  •           restaurant and alcohol licenses must also be obtained by starred hotels;
  •           all types of accommodation establishments must hire specialized personnel;
  •           hygienic and environmental permits must also be obtained for hotels.

It should be noted that the hotel classification in Indonesia starts at 3 stars.

Foreign hotel owners who wish to immigrate to Indonesia can reach out to us for details.

For full information on the requirements related to setting up a hotel in Indonesia, please contact us. We can also guide you through the registration procedure of the Indonesian company.