Steps to Secure a Tourism Business License in Indonesia

How to Obtain a Tourism Business License in Indonesia

  • InCorp Editorial Team
  • 10 February 2025
  • 5 minutes reading time

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

Steps to Secure a Tourism Business License in Indonesia

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:

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. 

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: 

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

Verified by

Hotdo Nauli

Senior Legal & Delivery Manager at InCorp Indonesia

Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). 

Frequently Asked Questions

    For tax purposes in Indonesia, companies must maintain their books in Rupiah, using the Indonesian language, and store them within the country. Exceptions for using USD and English in bookkeeping require prior notification to the authorities and any use of languages other than Indonesian needs approval from the Ministry of Finance.

    A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party.

    You can find the difference below:

    • PT: limited liability company (shareholders are not legally liable for company liabilities)
    • CV: a proprietary company where liability falls on the shareholders

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.

      • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

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.

More on Business Licenses

top 10 export commoditites

Top 10 Export Commodities in Indonesia

Read more
Starting a Construction Company in Indonesia: Know the Process

Starting a Construction Company in Indonesia: Know the Process

Read more
food packaging regulation in indonesia

Newest Regulation Update on Food Packaging in Indonesia

Read more