The southern coast of the island is at special risk, where most of these facilities are concentrated. However, recently the problem has gone far beyond these limits: illegal construction has reached the vicinity of Ubud, the east coast and even the island of Nusa Penida.
Simultaneously with the inspections, the "cleaning" of online booking platforms began in August. According to the authorities, several thousand objects are being rented on the island without registration. Back in early summer, aggregators received lists of illegal housing from the Ministry of Tourism and pledged to notify the owners within a month of the imminent removal of their ads. There is no data yet on how many offers have already been removed from the sites.
Legalization procedure
Owners who want to work legally will have to go through several mandatory steps. First of all, register a business number (NIB) through the OSS state system and select the appropriate activity code: 55130 for renting out a part of your own house or 55203 for a separate villa. Then you must obtain a certificate of compliance with the standards from an authorized organization.
The building itself also requires a construction permit (PBG) and an operational suitability certificate (SLF). You can't get a second one without the first document, and without the SLF, the facility cannot be officially recognized as a tourist accommodation. Additionally, you will need a local tax number (NPWPD) to pay the rental fees.
Penalties and prospects
A phased system of sanctions is provided for violations: from a simple warning to a complete suspension of activities and sealing of the villa. The strictest measure is the cancellation of the NIB and certificate, plus additional tax for the entire period of illegal delivery.The Ministry of Tourism, however, assured that no mass closures are planned. The Agency provides assistance to owners in processing documents and requires booking sites to place only verified objects.
Source: BaliForum
