Holiday rental rules
Renting a villa to guests is a licensed tourism business in Indonesia. Booking platforms now ask for a business number, and some licences are closed to foreigners.
- The small homestay licence (Pondok Wisata, KBLI 55130) is limited to up to five rooms with the owner living on site. It is reserved for Indonesian citizens, so neither a foreigner nor a PT PMA can hold it (Emerhub, 2026).
- KBLI 55193, the code that fits villas best, is reserved for Indonesian cooperatives and small businesses, so a foreign-owned company cannot register under it (Emerhub, 2026).
- Emerhub describes two compliant routes for a foreigner: a PT PMA with a tourism business registration under a code it may hold, HGB title, PBG and SLF; or a licensed Indonesian operator that holds the licence and runs the rental.
- Airbnb began asking hosts for an NIB (business number) and KBLI code from 22 February 2026, and listings without them could be removed from around 31 March 2026. This came from platform briefings, not a published regulation (House of Reservations, February 2026).
- Codes reported as accepted by platforms include 55110, 55120, 55130, 55191 to 55194, 55199 and 55900. The NIB should belong to the entity that operates the property (House of Reservations, 2026).
- Villas, pondok wisata and private homes used as hotels pay the regional hotel services tax (PBJT), capped at 10%. Stays of more than one month are not covered (DDTCNews, 2021).
- Rental income from land or buildings pays a final income tax of 10% of the gross rent under Government Regulation 34 of 2017. If the tenant is not a withholding agent, the owner pays it (DDTCNews, 2024).
- Do not use a nominee to hold a licence, do not register under a code your company is not entitled to, and do not assume the booking platform pays the hotel tax for you (Emerhub, 2026).
- In 2025 Bali's governor set up a task force to audit tourism permits after complaints about illegal foreign-run businesses and illegal villas (The Jakarta Post, June 2025). No such crackdown on Sumba was found.
Sources: emerhub.com, houseofreservations.com, news.ddtc.co.id, news.ddtc.co.id, thejakartapost.com
Checked 2026-11-08. Not legal or financial advice.
More guides
Visas and residence permits
Indonesia has several long-stay permits for foreigners who want to live on Sumba. They differ in who qualifies, how much money you must show and whether you may work.
Opening a bank account
A personal account is much easier to open once you hold a KITAS. A company account for a PT PMA needs the company's full set of papers and, in most banks, the director in person.
Sending money to buy property
Large payments for property usually go by bank transfer and are paid in rupiah inside Indonesia. Banks report cross-border transfers, and cash over IDR 100 million must be declared at the border.
Annual property tax and running costs
The yearly land and building tax (PBB-P2) is set and collected by each regency, within a national cap of 0.5%. A foreign-owned company also has recurring reporting duties.
Building permits: PBG and SLF
Before you build you need a zoning approval and a building approval (PBG), and before anyone moves in or rents the building you need a certificate of fitness (SLF).
Solar, water and internet
Sumba has long, dry seasons and patchy grid power and mobile data. Many owners plan for their own solar, water storage and satellite internet.