A Guide to Establishing a Travel Agency in Lombok

A Guide to Establishing a Travel Agency in Lombok

  • InCorp Editorial Team
  • 5 October 2020
  • 3 reading time

Tourism in West Nusa Tenggara province in Indonesia, where Lombok is located, has been growing tremendously over the past few years. In 2019, the total number of visitors, including both locals and foreigners, reached 3.7 million for Lombok travel. Most tourists enter Lombok through the Lombok International Airport and ferry ports on the island.

This is why Lombok has never ceased to be the top destination for foreigners who want to set up a travel agency on this beautiful island.

Many tourist spots in Lombok are well known for both local and international visitors. Here are some of the most popular ones that you should consider for your business.

  • Bukit Selong or Bukit Beleq
  • Pink Beach or Tangsi Beach
  • Gili Trawangan, Gili Air, and Gili Meno
  • The Ganges Tree House
  • Mandalika
  • Pusuk Sembalun Tourism Park
  • Mount Rinjani

 

Requirements for Opening a Lombok Travel Agency for Foreign Investors

There are certain criteria you have to meet before you can start a travel agency in Lombok.

Guide to Establishing a Travel Agency in Lombok

1. No Maximum Foreign Ownership

In Indonesia, foreigners can only own up to 67-70% of shares of a travel agency. It means that foreigners have to partner with an Indonesian citizen to open a travel agency.

2. Organisational Structure

You must have at least a resident director, two shareholders, and a commissioner before you can register your travel company.

3. Minimum Paid-up Capital

Foreign-owned Lombok travel agencies are required to have a minimum paid-up capital of IDR 1O billion

4. Operational Licenses

Certain operational licenses are mandatory to register your travel agency and one of them is the tourism business registration license.

5. Environmental License

This license is known as Surat Pernyataan Pengelolaan Lingkungan in the Indonesian language. All Indonesian travel companies and tour operators have to obtain an environmental license for environmental protection purposes.

6. Domicile Letter

Commonly known as Surat Keterangan Tempat Usaha in Indonesia, all travel companies in Lombok must have a proper business address and location. Your business address is used for company registration but you can run your business anywhere in Lombok.

7. Permitted Activities

Your foreign travel agency can carry out the following business activities in Lombok:

  • Sell tour packages
  • Plan and conduct tours
  • Provide tour guide and transportation services
  • Facilitate and handle the process of travel documents such as passports and visas
  • Sell attractions’ and cultural events’ tickets

Other Requirements for Lombok Travel Agencies

To be a legal travel agency in Lombok, you will also have to register with the ASITA. ASITA is the acronym for the Association of the Indonesian Tours and Travel Agencies.

Registration requirements with ASITA include the following:

  • Submit business documents such as tax identification card and business identification number
  • Prepare two recommendation letters from different travel agencies. These agencies must also be members of ASITA
  • Pay a refundable membership fee: IDR 5 million or US$340
  • Pay an annual fee: IDR 5.35 million or US$365

How Cekindo can Assist

Cekindo is an international advisory firm offering a wide gamut of business services in Indonesia. Some of the services that we provide include business setup solutions, tax advisory services, corporate advisory services, among others.

Our highly professional consultants help you to build your Lombok travel agency at every milestone, from the company registration process to annual tax filing, recruitment to payroll management.

Cekindo’s support team is always here to fulfill your requests effectively and timely. Send us your information and our helpful consultant will reply to you soon. Fill in the form below.

David Susandi

Branch Manager – Bali Office at InCorp Indonesia

Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia.

Get in touch with us.

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Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.