Guide to Pondok Wisata

How to Legally Rent Out Your Villa in Bali

legally rent out villa bali pondok wisata bedroom

The smart route to short-term rentals in Bali starts with the right license

As Bali’s villa rental scene grows, many foreign and local property owners are tapping into tourism with short-term accommodations. But if you want to do it legally, there’s one permit you need to know: Pondok Wisata. And be sure, it will be controlled!

What is a Pondok Wisata License?

“Pondok Wisata” is Indonesia’s license for small-scale tourist accommodations. Think of it as a mini hotel permit, ideal for villas, guesthouses or homestays located in residential zones.

It’s designed for:

  • Properties with fewer than 5-10 rooms.

  • Private owners or individuals (not corporate entities).

  • Short-term rentals, such as Airbnb-style stays.

Owning a villa in a residential area and want to rent it legally? This is the license you will need.

Why You Need It

Running a short-term rental without the proper license can lead to penalties, shutdowns or visa issues. A Pondok Wisata license:

  • Makes your rental business legal.

  • Allows listings on Airbnb, Booking.com, Agoda, etc.

  • Gives peace of mind – for you and your guests.

Who Can Apply?

Only Indonesian citizens can apply directly. However, foreign investors often structure ownership via a nominee agreement or leasehold through a local partner – always with legal guidance.

To qualify:

  • The property must be in a residential zone.

  • You must have proper building permits (IMB or PBG).

  • The land certificate should allow residential or tourism use.

What are the Requirements?

You will need:

  • A valid ID (KTP) of the Indonesian applicant.

  • Proof of ownership or lease agreement.

  • Zoning and environmental approvals (SLF, UKL/UPL if needed).

  • Building permit (IMB/PBG for tourism use).

  • Support from the local Banjar or village authority.

Each region may add specific requirements, always check with local authorities or let a legal expert like Prestige handle it.

How Long Does It Take?

The process usually takes 3 – 6 weeks, depending on documentation and local approvals. Prestige can assist in making this quick and painless.

Can Foreigners Still Benefit?

Yes. Foreigners often lease land (for 25+ years) or form a PT PMA to invest in property. While they cannot hold a Pondok Wisata directly, they can:

  • Partner with a trusted local.

  • Get long-term lease rights with licensing in the partner’s name.

  • Use alternative permits under a PT PMA for larger-scale projects.

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