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 the process required for immigration to Indonesia.
Table of Contents
Types of accommodation businesses in Indonesia
There are several types of accommodation establishments that 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 resorts are located.
Our local consultants can help foreign investors who want to open any of the hotel businesses mentioned above.
Our immigration lawyers in Indonesia are able to assist investors to apply for the right type of temporary residence permit.
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.
If a client has taken legal action against your company, or if you have questions about other legal matters such as employment agreements in Indonesia or the dismissal of hotel staff, our Indonesian lawyers can answer your questions. We provide legal counsel in many areas of business law, and are also able to represent clients during litigation proceedings. We also offer alternative dispute resolution solutions.
Foreign hotel owners who are also interested in the process of immigration to Indonesia can reach out to us for details. While it is not mandatory to remain in the country, foreign business owners may find that they wish to remain in Indonesia for medium to long-term purposes and in this case, applying for a residence permit for investors will be the needed step. Our team can help you during the application process and will answer any questions concerning the needed documents, processing time, and more.
Our immigration lawyers in Indonesia will give you details about the residence permit.
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.