Indonesia’s Ministry of Tourism has found that a significant number of accommodation businesses in Bali are operating without proper licenses. To address this issue, the ministry has launched a coaching clinic to help business owners register through the Online Single Submission (OSS) risk-based licensing system.
Deputy for Industry and Investment at the ministry, Rizki Handayani, said the initiative is part of a broader effort to strengthen tourism governance, enhance competitiveness, and promote sustainable destination management in Bali.
Rizki explained that the high number of unregistered accommodations has led to a decline in hotel occupancy rates, despite the rising number of tourists visiting the island.
“This situation triggers unfair business competition, lowers service quality for tourists, and creates legal and security risks,” Rizki said in an official statement, Monday (October 6).
According to ministry data, around 2,612 unregistered accommodation units have been identified in Bali. Local governments are now conducting verification and data collection to confirm their legal status. Rizki emphasized that in the future, all accommodations listed on Online Travel Agents (OTA) will be required to have official business permits.
“Business legality must be clear so that all parties are protected,” she added.
The coaching clinic, held in collaboration with the Bali Provincial Government, supported 80 business owners who have not yet obtained their Business Identification Number (NIB). Participants were guided through the OSS system to complete their registration and meet legal requirements.
Rizki stressed that obtaining business permits is not merely a formality. Legal registration ensures legal certainty, enables businesses to operate safely and competitively, and provides easier access to financing to support future growth.
“This program is part of our effort to improve destination governance to make it orderly, competitive, and sustainable,” Rizki stated, as reported by Antara.
Expert Staff of Bali Governor for Law, Politics, and Governance, Tjok Bagus Pemayun, highlighted that business permits reflect a commitment to responsible and sustainable tourism practices that align with regional development goals.
“The coaching clinic is important not only to help business owners understand how to access and register through OSS, but also to make sure they understand their obligations and rights after obtaining business permits,” Tjok Bagus said, as quoted by Warta Ekonomi.
The number of international tourist arrivals to Bali reached 6.3 million in 2024, accounting for more than 50 percent of Indonesia’s total 13.9 million foreign visitors. This surge has driven rapid growth in the tourism sector, including accommodation services, but has also exposed gaps in licensing and legal compliance.
To address this, the central government is working closely with local administrations to tighten supervision and draft new regulations for tourism accommodation licensing. This coordinated approach aims to create a level playing field for all businesses, safeguard tourists, and support sustainable tourism growth in Bali.
Souce: Kemenpar, Warta Ekonomi, Antara, Nusa Bali
Photo Credit: eyestetix-studio-CRqFC5HohC8-unsplash