How to Start a Tour Operator Company in Indonesia: 12 Insider Secrets to Succeed in Tourism

Introduction

Indonesia’s tourism industry continues to thrive as one of Southeast Asia’s fastest-growing sectors, attracting millions of visitors seeking authentic cultural experiences, natural beauty, and adventure. With its diverse destinations, from the beaches of Bali and Lombok to the pristine landscapes of Sumbawa, the country offers endless opportunities for entrepreneurs to create unique travel experiences for both local and international tourists.

For this reason, more and more foreign investors are setting up a Tour Operator Company in Indonesia. Beyond the country’s beauty, investors are drawn to the supportive business environment, improved infrastructure, and government initiatives that encourage sustainable tourism. However, establishing a legally compliant Tour Operator Company in Indonesia involves navigating several regulatory layers, including business licensing, OSS registration, and the Tourism Business Registration (TDUP).

This article provides a clear, step-by-step roadmap to help you understand the process, from choosing the right business structure to meeting compliance standards, ensuring your Tour Operator Company in Indonesia operates smoothly and successfully in 2025 and beyond.

Why Invest in a Tour Operator Company in Indonesia

Indonesia’s tourism industry has made a remarkable rebound since the pandemic, supported by new infrastructure developments, relaxed entry regulations, and growing global demand for authentic travel experiences. According to the Ministry of Tourism and Creative Economy, the country welcomed over 11 million international visitors in 2024, a strong indicator of Indonesia’s steady return to pre-pandemic tourism levels. This growth opens vast opportunities for entrepreneurs looking to establish a Tour Operator Company in Indonesia.

While Bali remains the heart of tourism, emerging destinations such as Lombok and Sumbawa are capturing investor attention. These islands are benefiting from improved airports, inter-island connectivity, and government-backed development projects that attract high-value travelers. For investors, setting up a Tour Operator Company in Indonesia means tapping into diverse tourism markets, from luxury escapes to eco-tourism and cultural exploration, each offering unique customer segments and revenue potential.

The rise of niche travel trends further strengthens the business case. Eco-conscious travelers seek sustainable tours, digital nomads look for curated local experiences, and adventure seekers want off-the-beaten-path packages. A well-structured Tour Operator Company in Indonesia can cater to these markets while supporting community-based tourism initiatives that align with government sustainability goals.

Beyond the commercial upside, legal registration ensures credibility, smoother operations, and access to official permits like the TDUP (Tourism Business Registration). Operating as a fully licensed Tour Operator Company in Indonesia not only builds trust with clients and partners but also positions your business for long-term stability, brand recognition, and eligibility for government incentives under the creative economy programs.

Step 1: Choose the Right Business Structure

Before establishing your Tour Operator Company in Indonesia, the first and most crucial step is selecting the right legal entity. Foreign investors typically choose between two main structures: a PT PMA (Foreign-Owned Limited Liability Company) or a Local PT (Indonesian-Owned Company).

A PT PMA allows foreign ownership, making it ideal for international entrepreneurs who want direct control over their operations. However, it requires a higher investment threshold, the minimum paid-up capital is IDR 10 billion (approximately USD 650,000), in accordance with Indonesia’s BKPM Regulation No. 4 of 2021 on investment guidelines. Meanwhile, a Local PT is suitable for partnerships with Indonesian shareholders, often used when investors prefer to operate under a nominee or local partner arrangement.

Next, you’ll need to select the correct KBLI (Indonesian Standard Business Classification) code. For a Tour Operator Company in Indonesia, the relevant KBLI is 79122, Travel Agency Activities, which covers organizing and selling tour packages, transportation, accommodation, and related services.

To formally establish your company, you must engage a licensed notary to draft the Deed of Establishment and Articles of Association. The process also involves appointing shareholders, directors, and commissioners, as required under Indonesian company law. Having legal representation ensures compliance with all documentation and submission procedures, streamlining your business setup and reducing potential delays.

Properly structuring your Tour Operator Company in Indonesia from the start lays the foundation for regulatory compliance, investor protection, and long-term success.

Step 2: Register via OSS to Obtain Your NIB

Once your company structure is in place, the next step to legally operate your Tour Operator Company in Indonesia is to register through the Online Single Submission (OSS) system, a centralized digital platform managed by the Indonesian Investment Coordinating Board (BKPM). The OSS system uses a Risk-Based Approach (RBA) to determine the level of supervision and documentation required for different business activities.

Under the OSS-RBA framework, business sectors are classified as low-, medium-, or high-risk based on potential impact on health, safety, environment, and resource management. A Tour Operator Company in Indonesia generally falls under the medium-risk category, meaning it requires not only a Business Identification Number (Nomor Induk Berusaha or NIB) but also a Standard Certificate (Sertifikat Standar) issued by the Ministry of Tourism and Creative Economy.

Your NIB functions as a unique company identifier and serves multiple purposes:

• It acts as your official business license under the RBA system.
• It automatically registers your company for a Tax ID (NPWP).
• It allows your Tour Operator Company in Indonesia to import goods, hire employees, and open corporate bank accounts.

To obtain your NIB, you must prepare and upload several key documents through the OSS portal:

• Deed of Establishment and Articles of Association, legalized by a notary
• Company Tax ID (NPWP)
• Domicile statement or lease agreement for your business office
• Identity documents of shareholders and directors
• Company’s investment plan and capital details

Once submitted, the OSS system will automatically generate your NIB and Standard Certificate if all requirements are met. These licenses are the backbone of your Tour Operator Company in Indonesia, enabling you to proceed with sectoral permits and start operating legally in Indonesia’s tourism market.

Step 3: Apply for the TDUP (Tourism Business Registration)

After obtaining your NIB, the next compliance milestone for your Tour Operator Company in Indonesia is securing the Tourism Business Registration Certificate, known as the TDUP (Tanda Daftar Usaha Pariwisata). This document is issued by the Ministry of Tourism and Creative Economy and serves as the official license that allows your company to legally organize, market, and sell travel packages to both domestic and international clients.

The TDUP is essential for credibility and compliance, without it, your Tour Operator Company in Indonesia cannot legally operate or collaborate with hotels, transport providers, and other tourism partners. It also proves to your customers that your business meets the national standards of service quality, safety, and consumer protection.

The TDUP application is now fully integrated into the OSS RBA system, making the process more efficient and transparent. You’ll need to submit your Standard Certificate, company profile, and business location details via OSS. Once verified, the Ministry of Tourism will issue your TDUP electronically.

Under the latest Minister of Tourism Regulation No. 6 of 2025, new requirements include:

• Proof of trained tour guides with certification from a registered tourism institution
• Evidence of sustainable tourism practices (e.g., waste management, community involvement)
• Updated insurance coverage for tourists under your care

Common mistakes to avoid include submitting incomplete staff data, using non-commercial office addresses, or misclassifying your business KBLI code. Ensuring that your Tour Operator Company in Indonesia meets every regulatory standard from the start will help you avoid costly delays or license rejections, ensuring a smooth path to full operational status.

Step 4: Secure Local Permits and Additional Approvals

Even after obtaining your TDUP, your Tour Operator Company in Indonesia must comply with regional and sectoral regulations to operate legally and safely. Indonesia’s decentralized governance system gives each province or regency authority to enforce local requirements, particularly in tourism-heavy regions such as Bali, Lombok, and Sumbawa.

The first step is securing approval from the local tourism office (Dinas Pariwisata). This ensures your business location, scope of service, and operational practices align with regional tourism policies. The local tourism office may conduct site inspections or request proof that your Tour Operator Company in Indonesia contributes positively to local employment and sustainable tourism.

Health and safety compliance is also crucial. Depending on your activities, you may need health and sanitation permits, especially if you offer food-inclusive tours or operate within hospitality facilities. For adventure or marine tours, your Tour Operator Company in Indonesia must meet the safety standards established by the Ministry of Tourism and Creative Economy, including the availability of certified first-aid kits, safety equipment, and trained personnel.

If your services involve transportation, ensure that all vehicles are registered under the company’s name, have valid vehicle operation licenses (SIUPJ or Izin Usaha Jasa Perjalanan Wisata), and are covered by comprehensive insurance for passengers. Tour guides must also hold professional licenses issued by recognized tourism training institutions.

For businesses operating in or near protected areas, such as national parks, coastal zones, or marine sanctuaries, additional environmental permits (AMDAL or UKL-UPL) may be required. These ensure that your Tour Operator Company in Indonesia adheres to conservation laws and sustainable tourism principles.

Taking the time to fulfill these local and sectoral requirements not only safeguards your business from future legal challenges but also strengthens your company’s reputation as a responsible and compliant Tour Operator Company in Indonesia.

Step 5: Ensure Insurance, Safety, and Contract Compliance

Running a Tour Operator Company in Indonesia involves direct interaction with travelers, activities in diverse environments, and coordination with multiple vendors, all of which carry inherent risks. That’s why having strong insurance, clear contracts, and safety procedures isn’t optional; it’s essential for both compliance and business credibility.

Every Tour Operator Company in Indonesia is required to provide liability insurance to cover accidents, injuries, or property damage that may occur during a tour. If your services include activities like diving, hiking, or adventure travel, you’ll also need adventure and travel insurance specifically covering high-risk tourism operations. Insurance documentation must be submitted during your TDUP and local permit applications.

Equally important are your service contracts and terms & conditions. These agreements should clearly define the responsibilities of your company, the traveler, and third-party partners such as hotels or transport providers. Transparent cancellation policies, refund clauses, and force majeure terms help protect your Tour Operator Company in Indonesia from disputes and establish professionalism.

Lastly, ensure that your team follows standardized safety protocols. Employees and guides should be trained in emergency response and customer handling, while all vehicles and equipment must undergo regular safety checks. Demonstrating commitment to safety and legal compliance enhances your reputation and builds long-term trust with clients and tourism partners.

Step 6: Tax and Employment Compliance

Once your operations are established, your Tour Operator Company in Indonesia must stay fully compliant with taxation and employment regulations. These obligations are not only legal requirements but also crucial for maintaining your company’s credibility with clients, partners, and government authorities.

The first step is corporate tax registration. Upon obtaining your NIB, your company automatically receives a Tax Identification Number (NPWP). You must then register with the Directorate General of Taxes (DGT) to determine your tax obligations, including Corporate Income Tax (PPh Badan), Value Added Tax (VAT/PPN) on tour packages, and Withholding Tax (PPh 21) for employees. Keeping accurate records and filing timely reports ensures that your Tour Operator Company in Indonesia avoids penalties and remains in good standing.

For employee welfare, registration with BPJS Ketenagakerjaan (Employment Social Security) and BPJS Kesehatan (Health Insurance) is mandatory. This ensures your staff receive protection for workplace accidents, pensions, and medical benefits — demonstrating your commitment to ethical employment practices.

If your Tour Operator Company in Indonesia employs foreign experts or managers, you must obtain work permits (IMTA) and limited stay visas (KITAS) under the supervision of the Ministry of Manpower and the Directorate General of Immigration. All expatriate staff must also be covered by insurance and BPJS where applicable.

Adhering to tax and employment compliance not only prevents legal complications but also strengthens your company’s professional reputation as a responsible and law-abiding tourism operator in Indonesia.

Step 7: Marketing and Operational Readiness

Once your Tour Operator Company in Indonesia is legally established, the next focus should be on building visibility and operational excellence. In today’s competitive tourism landscape, a strong marketing and service strategy determines how quickly your business gains traction.

Leverage digital platforms such as Google Business, Instagram, and TikTok to showcase authentic travel experiences. Partner with Online Travel Agencies (OTAs) like Traveloka, Booking.com, and TripAdvisor to increase your reach to international audiences. Strategic collaborations with local hotels, restaurants, and transportation providers can also boost brand credibility and customer trust.

A modern Tour Operator Company in Indonesia should integrate technology into daily operations, from online booking systems and payment gateways to CRM tools for personalized customer service. Consistent response times, multilingual support, and transparent communication can significantly improve client satisfaction and repeat bookings.

Lastly, embed sustainable tourism practices into your brand identity. Promote eco-friendly tours, support local communities, and minimize environmental impact. By aligning with Indonesia’s vision for sustainable tourism, your Tour Operator Company in Indonesia not only attracts conscious travelers but also contributes positively to the nation’s tourism ecosystem.

Common Pitfalls & How to Avoid Them

Even with the best intentions, many entrepreneurs face setbacks when setting up a Tour Operator Company in Indonesia due to avoidable mistakes. One of the most common is ignoring the TDUP requirement, operating without this tourism license can lead to legal sanctions, business suspension, or loss of partnership opportunities.

Another frequent error is skipping insurance or local approvals. Without valid liability or adventure insurance, your Tour Operator Company in Indonesia risks both financial loss and reputational damage in the event of accidents. Similarly, failing to obtain clearance from the local tourism office can result in permit revocation or fines.

Lastly, misclassifying your KBLI code is a critical oversight. Using the wrong classification during OSS registration may invalidate your business activities or delay your TDUP approval. Ensuring accurate documentation and legal compliance from the start helps your Tour Operator Company in Indonesia operate smoothly and sustainably.

FAQ

1. Do foreigners need local partners?

No, foreign investors can fully own a Tour Operator Company in Indonesia by establishing a PT PMA (Foreign-Owned Company). However, partnering with a local entity can be beneficial for regional market insight, easier licensing, and smoother community engagement — especially in Bali, Lombok, or Sumbawa.

2. Can a Tour Operator Company in Indonesia hire foreign guides?

Yes, but with restrictions. Foreigners can be employed as specialized tour experts or managers, provided they hold valid work permits (IMTA) and limited stay visas (KITAS). However, local tour guides must handle direct guiding services, as per Indonesian labor and tourism regulations.

3. What are the renewal requirements for TDUP?

The TDUP (Tourism Business Registration) must be renewed periodically, typically every five years, or whenever there are significant business changes, such as ownership structure, office location, or service type.

4. How long does the setup usually take?

On average, establishing a Tour Operator Company in Indonesia takes around 4–6 weeks, depending on document completeness and regional approvals. Engaging a professional legal consultant or business advisory can help expedite the process and ensure compliance at every stage.

Conclusion: Build Your Tour Operator Company in Indonesia the Right Way

Establishing a Tour Operator Company in Indonesia is an incredible opportunity to join one of Asia’s most vibrant tourism economies, but long-term success depends on doing it right from the start. From selecting the right business structure and obtaining your NIB and TDUP, to securing insurance, tax registration, and local permits, every step ensures your business operates smoothly and legally.

By following the correct procedures, you’ll position your Tour Operator Company in Indonesia for credibility, investor confidence, and long-term growth in this competitive industry.

However, Indonesia’s licensing landscape can be complex for new investors. To save time and avoid costly mistakes, consult with Synergy Pro, our team of legal and business experts can guide you through every stage of setting up your Tour Operator Company in Indonesia, ensuring full compliance and a seamless start to your tourism venture.