Indonesia tightens rules for Airbnb-style rentals

JAKARTA, Indonesia - The Indonesian government has tightened regulations for short-term rental properties including those listed on digital platform Airbnb 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. — Reuters