Indonesia Joins United States, Spain, United Kingdom, Germany, Portugal, Mexico And More As It Rolls Out New Regulations For Airbnb-Style Stays, Boosting Compliance And Protecting Housing Markets

Indonesia has joined a growing list of countries, including the United States, Spain, the United Kingdom, Germany, Portugal, and Mexico, by implementing new regulations for Airbnb-style stays. This move is aimed at boosting compliance within the short-term rental market, ensuring that properties meet legal standards, and protecting local housing markets from the impact of unregulated vacation rentals. By tightening its rules, Indonesia is addressing concerns about housing availability, traveler safety, and fair competition, while creating a more transparent and reliable accommodation ecosystem for both locals and visitors.

As global tourism continues to expand rapidly, governments around the world are taking action to ensure a safer, more reliable, and regulated accommodation sector. In line with these efforts, Indonesia has introduced new regulations that will directly impact short-term rental services, specifically targeting Airbnb-style accommodations. This move aligns Indonesia with several other countries and regions that have already enacted or are working on similar laws, ensuring that visitors enjoy secure stays while maintaining fair competition for traditional hospitality establishments.

This article examines Indonesia’s newly implemented short-term rental regulations, drawing comparisons with the actions taken by other countries and regions worldwide that have introduced similar laws.

Indonesia’s New Short-Term Rental Regulations

Indonesia’s Ministry of Tourism has announced a collaboration with several key players in the online travel agency (OTA) market to ensure the smooth implementation of these new regulations. The list of OTAs includes global giants like Airbnb, Booking.com, and Agoda, as well as popular local platforms such as Traveloka and Tiket.com.

These collaborations aim to guarantee that all accommodation listings, whether traditional hotels or independent vacation rentals, meet the necessary legal and licensing standards before being offered to travelers. This collaboration follows the enactment of Government Regulation No. 80 of 2019 and Government Regulation No. 28 of 2025, which dictate that all short-term rental operators must obtain proper licenses. Additionally, platforms listing these properties are also required to ensure compliance, with strict penalties for violations.

What Indonesia’s Regulations Mean for Travelers

1. Increased Safety and Accountability
   The new regulations are designed to protect travelers by ensuring that only legally compliant properties are listed. This will help increase the overall safety and reliability of stays, as each property must adhere to legal requirements, including health and safety standards.
2. Licensing Requirements
   Property owners and hosts who wish to rent out their properties on platforms like Airbnb and Booking.com are now required to obtain a Business License (PB). This measure aims to create transparency in the sector, reducing the number of unregistered or illegal rentals that could potentially jeopardize travelers’ experiences.
3. Potential Removal of Unlicensed Properties
   Travelers should be prepared for the temporary removal of certain villas, homestays, and other short-term rental properties from booking platforms, especially in tourist-heavy regions like Bali. These properties may be taken offline while their owners work to secure the necessary permits. The government has set a deadline of March 31, 2026, for platforms to comply with the new rules.
4. Impact on Pricing and Availability
   With the new compliance requirements in place, hosts may adjust their rates to reflect the costs of obtaining licenses and fulfilling other legal obligations. As a result, travelers may notice fluctuations in pricing, particularly in regions that have previously been dominated by unlicensed rentals.
5. Fewer Cancellations
   One of the anticipated benefits of the regulations is a reduction in last-minute cancellations. Since only properties with the proper documentation can operate, travelers are less likely to encounter sudden changes to their bookings due to a lack of compliance.

Indonesia’s Move: A Global Trend

Indonesia’s regulatory changes mirror actions that have already been taken by several other countries and regions across the globe. These moves are often driven by concerns about housing availability, the need to ensure fair competition, and ensuring that short-term rentals meet safety standards. Below are key countries and regions that have introduced similar regulations:

United States

In the United States, cities like New York City and Los Angeles have implemented strict short-term rental regulations in response to the increasing number of unlicensed properties.

• New York City: Hosts must register their properties with local authorities, and short-term rentals are limited to a maximum of 30 days per year unless the host is present.
• Los Angeles: Requires hosts to obtain a license and restricts the use of properties for short-term rentals unless the host lives on the premises.

These laws are part of a broader national trend where cities and states have recognized the need to balance the rise of short-term rentals with the preservation of long-term housing options for residents.

Spain

Spain is another country where short-term rental regulations are becoming increasingly stringent. Cities like Barcelona and Madrid have introduced measures to combat the impact of Airbnb-style rentals on local housing markets.

• Barcelona: The city limits the number of short-term rentals in some neighborhoods, effectively reducing overtourism in the most congested areas.
• Madrid: Similar to Barcelona, Madrid has imposed restrictions on short-term rental licenses to ensure that rental properties contribute to the local economy without overwhelming the housing market.

United Kingdom

In the United Kingdom, particularly in London, regulations around short-term rentals have been evolving to ensure that these properties do not affect the local housing market.

• London: Short-term rentals are restricted to a maximum of 90 nights per year unless the host obtains additional permissions from local authorities.

This regulation aims to ensure that the housing stock remains available for residents and that rental properties are held to high standards.

Germany

Germany has been proactive in regulating short-term rentals, especially in cities like Berlin. The country’s Berlin law requires property owners to obtain a special permit if they wish to rent their property for short stays.

• Berlin: Unregistered short-term rentals are subject to penalties, and property owners must apply for a permit to legally rent out their homes on platforms like Airbnb.

This legislation aims to control the number of short-term rentals available, ensuring that housing remains available for long-term residents.

Portugal

Portugal has also followed the trend of regulating short-term rentals, particularly in its capital city, Lisbon.

• Lisbon: The city has introduced a licensing system to control the number of vacation rentals, particularly in areas with a high demand for housing. This is designed to preserve the local housing market and ensure that travelers have access to safe and regulated properties.

Mexico

In Mexico, particularly in Mexico City, regulations are being implemented to ensure that short-term rentals comply with tax and safety regulations.

• Mexico City: Hosts are required to register with the local government, and failure to comply with these regulations can lead to fines or removal from rental platforms.

These moves aim to ensure that Mexico’s rapidly growing tourism sector benefits both travelers and local communities, while maintaining control over housing markets.

Other Countries with Similar Regulations

Several other countries and cities around the world have also moved toward regulating short-term rentals:

• Japan: The Minpaku Law requires hosts to register with authorities and limits rental stays to 180 days per year.
• Singapore: Strict rules prohibit short-term rentals for periods under three months.
• Australia: Cities like Sydney and Melbourne have set limits on the number of nights properties can be rented, requiring hosts to register.
• Canada: In Toronto and Vancouver, short-term rental regulations include registration and tax compliance requirements.

Indonesia’s newly introduced regulations for short-term rentals are in line with a growing global movement towards ensuring the safety and reliability of the accommodation sector. Countries and cities across the world, including the United States, Spain, United Kingdom, Germany, Portugal, Mexico, and many others, are introducing similar rules to regulate the growing short-term rental market.

As travelers around the world continue to seek new destinations, the importance of transparent, legal, and regulated accommodations has never been more critical. Indonesia’s new regulations not only ensure that tourists will have access to safer and more reliable stays but also contribute to the sustainability of local housing markets and fair competition in the tourism sector.

Indonesia joins the United States, Spain, the United Kingdom, Germany, Portugal, Mexico, and more by rolling out new regulations for Airbnb-style rentals to ensure legal compliance and protect local housing markets from unregulated vacation rentals. This move addresses concerns about housing availability and promotes a safer, more transparent accommodation system.

In the coming months and years, other countries are likely to follow suit, recognizing the need for regulatory oversight in an increasingly popular and competitive global travel market. Travelers can expect more transparent, legally compliant, and secure accommodation options, ensuring a safer experience for all.

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