A Guide to Establishing a Travel Agency in Lombok

A Guide to Establishing a Travel Agency in Lombok

  • InCorp Editorial Team
  • 5 October 2020
  • 3 minutes reading time

Tourism in West Nusa Tenggara province in Indonesia, where Lombok is located, has been growing tremendously over the past few years. In 2019, the total number of visitors, including both locals and foreigners, reached 3.7 million for Lombok travel. Most tourists enter Lombok through the Lombok International Airport and ferry ports on the island.

This is why Lombok has never ceased to be the top destination for foreigners who want to set up a travel agency on this beautiful island.

Many tourist spots in Lombok are well known for both local and international visitors. Here are some of the most popular ones that you should consider for your business.

  • Bukit Selong or Bukit Beleq
  • Pink Beach or Tangsi Beach
  • Gili Trawangan, Gili Air, and Gili Meno
  • The Ganges Tree House
  • Mandalika
  • Pusuk Sembalun Tourism Park
  • Mount Rinjani

 

Requirements for Opening a Lombok Travel Agency for Foreign Investors

There are certain criteria you have to meet before you can start a travel agency in Lombok.

 Guide to Establishing a Travel Agency in Lombok

1. No Maximum Foreign Ownership

In Indonesia, foreigners can only own up to 67-70% of shares of a travel agency. It means that foreigners have to partner with an Indonesian citizen to open a travel agency.

2. Organisational Structure

You must have at least a resident director, two shareholders, and a commissioner before you can register your travel company.

3. Minimum Paid-up Capital

Foreign-owned Lombok travel agencies are required to have a minimum paid-up capital of IDR 1O billion

4. Operational Licenses

Certain operational licenses are mandatory to register your travel agency and one of them is the tourism business registration license.

5. Environmental License

This license is known as Surat Pernyataan Pengelolaan Lingkungan in the Indonesian language. All Indonesian travel companies and tour operators have to obtain an environmental license for environmental protection purposes.

6. Domicile Letter

Commonly known as Surat Keterangan Tempat Usaha in Indonesia, all travel companies in Lombok must have a proper business address and location. Your business address is used for company registration but you can run your business anywhere in Lombok.

7. Permitted Activities

Your foreign travel agency can carry out the following business activities in Lombok:

  • Sell tour packages
  • Plan and conduct tours
  • Provide tour guide and transportation services
  • Facilitate and handle the process of travel documents such as passports and visas
  • Sell attractions’ and cultural events’ tickets

Other Requirements for Lombok Travel Agencies

To be a legal travel agency in Lombok, you will also have to register with the ASITA. ASITA is the acronym for the Association of the Indonesian Tours and Travel Agencies.

Registration requirements with ASITA include the following:

  • Submit business documents such as tax identification card and business identification number
  • Prepare two recommendation letters from different travel agencies. These agencies must also be members of ASITA
  • Pay a refundable membership fee: IDR 5 million or US$340
  • Pay an annual fee: IDR 5.35 million or US$365

How Cekindo can Assist

Cekindo is an international advisory firm offering a wide gamut of business services in Indonesia. Some of the services that we provide include business setup solutions, tax advisory services, corporate advisory services, among others.

Our highly professional consultants help you to build your Lombok travel agency at every milestone, from the company registration process to annual tax filing, recruitment to payroll management.

Cekindo’s support team is always here to fulfill your requests effectively and timely. Send us your information and our helpful consultant will reply to you soon. Fill in the form below.

Verified by

David Susandi

Branch Manager – Bali Office at InCorp Indonesia

Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia.

Frequently Asked Questions

    The investment requirement for PMA companies in Indonesia varies based on their classification under the Indonesia Industrial Standard Classification (KBLI). Generally, a minimum investment of IDR 10,000,000,000 (ten billion Indonesian Rupiah), excluding investment in land and buildings, is needed to conduct one business activity in one location.

    To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don’t hesitate to contact our consultants.

    Audited financial statements are required for:

    • Entities gathering funds from the public (e.g., banks, insurance companies)
    • Entities issuing debt instruments
    • Publicly listed companies
    • State-owned enterprises
    • Companies with assets and/or turnover exceeding IDR 50 billion
    • Entities mandated by legislation

    The procedures for (voluntarily) liquidation typically involve the following steps:

    • Conduct a general shareholder meeting to approve the liquidation and the liquidator’s nomination
    • Notify the Ministry of Law and Human Rights as well as the creditors of the liquidation and the distribution plan for the assets by newspaper notice
    • All business licenses and tax numbers should be canceled or revoked; the tax office will conduct a tax audit to revoke the tax number
    • Make sure creditors are paid and that any liquidation funds are distributed to shareholders (if any)
    • Conduct a general meeting of shareholders to approve the liquidator’s discharge and acquittal
    • Notify the Ministry of Law and Human Rights of the liquidation’s outcome. After receiving the notification, the Ministry of Law and Human Rights will deregister the company’s status as a legal entity and remove its name from the Company Registry
    • Release the liquidation’s outcome in a newspaper

    Completing the liquidation process can take around two years.

Get in touch with us.

Lead Form

What you’ll get

A prompt response to your inquiry

Knowledge for doing business from local experts

Ongoing support for your business

Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.