- by Riyadh
- 14 January 2026
Yes. Unlike small villas or homestays that require individual permits, hotels are fully open to foreign investment through a PT PMA (Foreign-Owned Company). Indonesia’s Investment List marks accommodation services—including hotels, resorts, and serviced apartments—as sectors that allow up to 100% foreign ownership, depending on the subcategory.
This makes Bali one of the most favorable destinations in Southeast Asia for hotel investment.
Foreigners must operate a hotel under a PT PMA with the right KBLI codes. The most relevant classifications are:
- 55111 – Hotel Bintang
- 55112 – Hotel Non-Bintang
- 55130 – Resort and Similar Accommodation Services
A PT PMA must also meet:
- Paid-up capital requirement: IDR 10 billion minimum per business activity
- Proper business location zoning (ITR/Kesesuaian Kegiatan Pemanfaatan Ruang)
- Compliance with OSS RBA requirements
A PT PMA cannot own freehold land (SHM), but it can legally control land through:
1. Hak Guna Bangunan (HGB) on State Land
2. HGB on Top of Hak Milik (via long-term lease with a landowner)
3. Hak Pakai (for certain hotel classes)
4. Long-Term Lease (25–30 years) + extension rights
For investors building mid-size or large hotels, HGB is the preferred structure because it provides:
- 30-year ownership
- Extendable up to 80 years
- Can be sold, inherited, or transferred by the PT PMA
a. Upfront Land & Planning Permits
- ITR (Zoning confirmation)
- PBG (Building Approval)
- SLF (Building Worthiness Certificate)
b. Environmental Requirements
- SPPL (for small to mid-size hotel)
- UKL-UPL or AMDAL (for large developments)
c. Hotel Operational Permits via OSS RBA
- NIB (Business Identification Number)
- Business Licensing for Hospitality (Perizinan Berusaha Skala Risiko)
- Hotel Classification (bintang / non-bintang)
d. Additional Requirements
- Fire safety compliance
- Employment and expatriate permits (if employing foreigners)
- Trademark registration for the hotel brand (optional but recommended)
Foreign investors typically choose one of three strategies:
1. Fully-Owned Hotel (PT PMA)
Investors build, manage, and operate their hotel independently.
Suitable for boutique hotels (10–40 rooms).
2. Management Agreement with a Hotel Operator
Partnering with brands such as:
- Marriott
- Accor
- Hyatt
- Local hotel management companies in Bali
This is suitable for medium-to-large developments.
3. Lease-to-Operate Model
The PT PMA leases an existing hotel building and operates it.
Lower initial capital; faster go-to-market.
- Incorrect zoning (ITR) can stop development entirely
- Failure to meet environmental requirements may lead to closure
- Lack of proper hotel classification affects OTA listing (Booking.com, Agoda)
- Using villa permits for hotel-scale operations is illegal and heavily enforced in Bali
Professional due diligence is mandatory before acquisition or development.
Starting a hotel business in Bali is fully accessible for foreign investors as long as they use the correct structure (PT PMA), comply with zoning rules, secure the required permits, and follow hospitality licensing standards. With proper planning and compliance, Bali remains one of Asia’s highest-ROI markets for hotel investment.
