Indonesia’s Short-Term Rentals Operators Confused By New Rules
Photo Credit: The Handara Gate in Bali. Pexels / Oleksandr P
Skift Take
Regulating short-term rentals is easier on paper than in practice. Indonesia’s biggest challenge may be enforcement, especially when most properties seem likely to fail to meet current licensing requirements.
Short-term rental operators in Indonesia are unsure how to comply with Indonesia's new rules, with one operator telling Skift they're in a "Catch-22."
Tourism Minister Widiyanti Putri Wardhana’s announcement on the new requirements came last week via Instagram. He announced that all short-term rentals listed on online travel sites must be able to comply with new regulations by March 31.
However, multiple operators have told Skift that compliance by this date may be impossible.
The new rules have been set in place to stop tax avoidance, level the field for licensed hotels, and make tourism more sustainable. They were introduced following growing concern from local authorities, particularly in Bali, that the rapid growth of short-term rentals has outpaced the rules governing them.
Governments across Southeast Asia are tightening oversight on unlicensed accommodation, Hannah Pearson, director of Pear Anderson, told Skift. “It highlights the
