How to Obtain a Tourism Business License in Indonesia

Indonesia is a popular travel destination with a strong economy and over 17,000 islands. It attracts millions of visitors annually, making starting a tourism business in Indonesia an excellent opportunity for entrepreneurs.  

Tourism business allows foreign investors to enter a lively market and discover the country’s diverse and unique attractions. Operating a tourism business in Indonesia involves understanding and following local laws.  

A key step in this process is getting a tourism business license. This license is essential for establishing a reputable and compliant business in the sector. 

This guide explains how to get a tourism business license in Indonesia. It outlines the steps involved, what you must do, and the benefits of having the license. Each step is detailed to provide a clear roadmap for potential entrepreneurs. 

Indonesia’s Tourism Market

Indonesia’s tourism sector has seen significant changes over the past decade. Between 2013 and 2019, the Tourism Direct GDP grew steadily, but the pandemic in 2020 led to a sharp decline of over 54%. A strong recovery began in 2021 with a 61.49% increase, continuing into 2023 with a 12.81% growth. 

Despite ongoing challenges, the sector’s five-year CAGR (2019-2023) is 0.47%, indicating a slow recovery. Projections for 2024-2028 suggest a CAGR of 0.32%, reflecting stabilized growth. This trend is supported by rising tourist arrivals and a renewed interest in Indonesia’s attractions. 

Key future trends include increased digitalization, eco-tourism initiatives, and a rise in domestic tourism after the pandemic. Entrepreneurs with a tourism business license can benefit from current opportunities.  

Why Start a Tourism Business in Indonesia? 

The tourism sector yields strong returns, with travel agencies, adventure tourism, and hospitality services showing solid profit margins. Obtaining a tourism business license allows you to access partnerships with government programs and international collaborations.  

Here are some key investment areas to explore: 

Hospitality and Accommodation 

As the demand for luxury resorts, boutique hotels, and eco-lodges increases, Labuan Bajo and Lake Toba are experiencing a rise in new developments, creating significant investment opportunities. 

Travel and Tours 

The increasing desire for personalized travel experiences, including adventure tourism, cultural tours, and sustainable travel, presents a thriving market for companies that offer tailored packages that align with modern traveler preferences. 

Infrastructure Development 

Indonesia’s “10 New Balis” initiative focuses on developing infrastructure in lesser-known regions, opening doors for construction, transportation, and logistics businesses. 

Digital Platforms and Technology 

The rapid adoption of digital travel solutions, such as booking platforms and virtual tours, underscores the immense potential of tech-driven tourism services. 

READ MORE:

• Exploring the Potential of Indonesia’s Tourism Industry 
• Investing in the Indonesia Tourism Industry: Opportunities on Trikora Coast 
• Starting a Lifestyle Business in Bali: A Simple Guide 

How to Start a Tourism Business in Indonesia 

Starting a tourism business in Indonesia involves a few critical steps. Collaborating with legal advisors can help simplify the process and ensure full compliance with Indonesian laws. 

• Selecting the appropriate business structure 
• Registering your company through the OSS system 
• Securing a Tourism Business Registration Permit (TDUP) 
• Meet capital requirements 
• Comply with zoning regulations 
• Complete environmental permit approvals 
• Understanding and complying with tax obligations 

For comprehensive guidance on navigating this process, you can always rely on InCorp Indonesia for expertise and support. We are here to assist you every step of the way. 

Tourism Business Classification in Indonesia 

Indonesia categorizes tourism businesses into specific fields, ensuring specialization and compliance. Under the Tourism OSS Regulation, the following business fields are considered part of the tourism industry: 

• Tourist attractions 
• Tourism areas 
• Tourist transportation services 
• Travel services 
• Food and beverage services 
• Accommodation provision 
• Organization of entertainment and recreational activities 
• Organization of meetings, incentive trips, conferences, and exhibitions 
• Tourism information services 
• Tourism consulting services 
• Guide services 
• Water tourism 
• Spa services 

The Requirements for a Tourism Business License in Indonesia  

The Tourism OSS Regulation outlines the required tourism business licenses as follows: 

• Business License: Tourism Business Registration License (TDUP) 
• Commercial/Operational License: Tourism Business Certificate (TBC) 

To validate the TDUP, business operators must fulfill specific commitments, such as obtaining necessary permits (e.g., location, environmental, and building permits).  

After TDUP issuance, businesses must get the TBC within a designated timeframe based on their size: large companies within 2 years, medium-sized companies within 4 years, and small/micro businesses within 6 years. 

Popular Tourist Destinations in Indonesia 

Businesses must focus on the diverse and unique offerings across the country’s popular regions to succeed in Indonesia’s tourism sector. They are: 

• Bali is known for its beaches, culture, and nightlife. It focuses on wellness tourism, cultural experiences (e.g., temples, art), and luxury resorts. 
• Java is rich in history and eco-tourism, with opportunities for cultural tours, temples (Borobudur, Prambanan), and adventure tourism, such as hiking on volcanoes. 
• Sumatra is famous for its wildlife and nature. It offers eco-tours in national parks, wildlife safaris, and sustainable travel options. 
• Komodo is ideal for diving and eco-tourism. It focuses on marine life exploration and conservation efforts. 

Start Your Tourism Business in Indonesia with InCorp 

To successfully navigate the complex process of obtaining a tourism business license in Indonesia, InCorp (an Ascentium Company) can assist you with careful planning, understanding local regulations, and following the necessary legal procedures such as: 

• Company Registration: Ensuring a seamless setup process. 
• Business License: Navigating all legal requirements for your tourism business. 

Take the first step toward launching your tourism business quickly by completing the form below.