The Ministry of Tourism is ramping up enforcement to bring Indonesia’s hospitality sector into full regulatory compliance.
The latest crackdowns target lodging properties and vacation rentals that are currently operating without legal business licenses from local authorities.
In collaboration with Online Travel Agents (OTAs), tourism officials are building an automated verification framework driven by an Application Programming Interface (API). This mechanism will guarantee that only properties backed by legitimate operational permits can be listed on digital booking apps.
This regulatory push has gained strong backing from hospitality industry associations and tourism operators, who note that weeding out illegal players will foster fairer market competition and long-term industry health.
The proprietary API software is undergoing internal testing ahead of its planned rollout across various mainstream OTA networks.
To pass the digital screening process, lodging operators must submit three essential corporate credentials: their Business Identification Number/NIB, the appropriate Indonesian Standard Classification of Business Fields/KBLI code, and a registered Business Activity Number/NKU.
“This setup establishes an accelerated and precise screening infrastructure. It ensures every stakeholder has access to validated, up-to-date documentation while allowing certified properties to display a verified license badge directly on OTA interfaces,” Tourism Minister Widiyanti Putri Wardhana stated in an official press release on Tuesday (May 26, 2026).
By linking the API to the national Online Single Submission (OSS) network, both the booking platforms and ministry auditors can cross-reference business credentials instantaneously.
Properties with flawless, compliant paperwork will receive automatic verification and the green light to take bookings online. On the flip side, any entity displaying data mismatches or unverified credentials will face immediate listing rejection or an indefinite freeze on their application.
Tourism Minister Widiyanti Putri Wardhana expects the API integration to go live by June 2027. Following the official launch, digital booking agents will be legally obligated to purge any hotels, villas, or third-party properties that fail to provide a verifiable business ID and an accurate categorization of business classification/KBLI code.