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Airbnb Lombok: How to Legally Start This Accommodation Business

Starting an Accommodation Business in Lombok by Renting Out Your Airbnb Villas

Known as “The Little Sister of Bali”, Lombok has truly become more and more popular. It’s also now a well-known hub for businesses, especially in the tourism and hospitality sector.

Due to its diverse population and culture, strategic location, and breathtaking landscapes, Lombok is blessed with numerous business opportunities and positivity. Over the past few years, a substantial number of tourists have been visiting Lombok ever since the opening of Lombok’s international airport in 2011.

Lombok has transformed itself as one of the world’s remarkable travel and tourism destinations. This beautiful island has been one of the regions in Indonesia that have outperformed many cities with its rise of tourism thanks to its proximity to Bali and Sumbawa.

As a result, a surging number of foreigners are coming to Lombok to invest in property, as well as to set up their accommodation businesses.

In this article, Cekindo will bring you all the information you need to know about starting an Airbnb business in Lombok.

How Foreigners can Start an Airbnb Accommodation Business in Lombok Legally

Accommodation businesses in Lombok such as Airbnb are considered common business activities among expats and foreign companies.

However, you need to know that Airbnb business activities are not included in the Negative Investment List in Indonesia. As such, you’re not permitted to run an accommodation business or rent out your Airbnb in Lombok as a foreigner.

Therefore, instead of setting up a PT PMA, the most ideal solution for foreigners to have their Airbnb in Lombok is to partner with a professional provider with Special Purpose Agreement.

Through a Special Purpose Vehicle Company, also known as a company providing professional commissioners, shareholders and directors, foreigners can acquire local operational licenses to overcome the foreign ownership restrictions of Airbnb businesses in Lombok.

Necessary Licenses to Rent Out Airbnb in Lombok

The local operational licenses to run an Airbnb villa in Lombok are the accommodation license and the building license (IMB).

1. Accommodation license

Two types of accommodation licenses are available in Lombok. The type of accommodation license you need depends on the housing type and the number of rooms.

  • Hotel license (Pondok Wisata License)

This license applies to Airbnb with more than five rooms. It is a full hotel license.

  • Homestay license (Melati License)

This license applies to Airbnb with three to five rooms.

2. Building license

A building license is a determining factor for you to operate an Airbnb in Lombok. It is a permit that provides approval that you can build your property for your accommodation business.

Minimum Capital Requirement for a Local Company

In addition to the convenient process and full control of your Airbnb business, one of the main benefits of having a Special Purpose Vehicle company is that you don’t have to worry about the minimum capital. No minimum capital is necessary as a Special Purpose Vehicle company is owned locally.

How Cekindo Can Assist

Starting an Airbnb business in Lombok can be a relatively easy undertaking if you take care of all the important aspects.

However, as a foreigner who is unfamiliar with the local market and business environment, you may sometimes let the details slide. This does not have to be the case if you get yourself the proper assistance.

We at Cekindo have our team of experienced consultants to support you in setting up your Airbnb in Lombok. Ever since our inception, we have become an influential business setup consultant in Indonesia with a host of achievements. One of those is we have helped many entrepreneurs successfully set up their Airbnb in Lombok.

If you are preparing to incorporate an Airbnb in Lombok or other places in Indonesia, do contact Cekindo for more information. Fill in the form below.

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