Indonesia tightens rules for Airbnb-style rentals

Reuters18:45
Indonesia tightens rules for Airbnb-style rentals

JAKARTA, Feb 27 (Reuters) - The Indonesian government has tightened regulations for short-term rental properties including those listed on digital platform Airbnb ABNB.O by mandating that they possess business permits, the country's tourism minister said on Friday.

  • All accommodations listed on online travel agencies must have necessary business licenses by March 31, Minister Widiyanti Putri Wardhana said on her Instagram account.

  • The government expects all operators to start processing the required permits, Widiyanti said.

  • The new regulation came after the governor of Indonesian resort island of Bali proposed to halt all short-term rentals including those listed on Airbnb, as the provincial government was losing regional tax revenue.

  • Widiyanti said the move seeks to ensure Indonesia's tourism sector keeps growing, to prevent tax evasion, and to provide a fair environment for all business operators in the tourism sector.

(Reporting by Ananda Teresia)

((Ananda.Teresia@thomsonreuters.com;))

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