Local Registrations in Indonesia – NPWPD & Regional Compliance [2026 Edition] - (Part 6)

Introduction

Now that you've met Indonesia's national standards with your company now established, your accounting and tax systems in place, and your hiring and hr practices are legal and compliant, you now need to ensure that you're also compliant and able to operate at the regional/local level. 

In Part 6 – Local Registrations in Indonesia – NPWPD & Regional Compliance, we shift focus to the regional level. This information primarily applies to hospitality businesses including restaurants, hotels and short term accommodation providers. 

You will learn about NPWPD's, municipal tax obligations, and how local regulations integrate with OSS-RBA to complete your compliance profile.

If you haven't read our first five parts of this series make sure you check out
Part 1 – How to Open a Foreign-Owned Company (PT PMA) in Indonesia
Part 2 – Indonesia KBLI Codes & Business Licences Explained  
Part 3 – Accounting Setup for PT PMA Companies in Indonesia 
Part 4 – Financial & Tax Reporting in Indonesia – PSAK Statements & Annual SPT Filing
Part 5 – Indonesia HR Compliance Guide – Employment Contracts, Payroll & BPJS  

1. Why Local Compliance Matters

Indonesia’s governance system delegates significant power to regional governments (Pemda) under Law No. 23 of 2014 on Regional Autonomy.

That means even a fully licensed PT PMA (with NIB, NPWP, and OSS permits) must still meet local obligations at the province and district level to operate legally.

Local compliance includes:

• Registration for a regional tax number (NPWPD)
• Filing and payment of local taxes (PBJT, PHR, advertising, groundwater, etc.)
• Registration with the local Manpower Office (Disnaker)
• Approval of environmental and zoning documents (SPPL / UKL-UPL / AMDAL)
• Holding a valid building utilisation certificate (SLF)

Failing to meet these requirements can result in closure of the business premises, local fines, or even national licence suspension through OSS.

2. Indonesia’s Multi-Layered Licensing System

Level	Authority	Key Registrations / Permits	Example
National	BKPM / OSS-RBA	NIB, Standard Certificates, NPWP, BPJS, RPTKA	Company establishment, national compliance
Provincial	Provincial Government	Regional taxes (e.g., motor vehicle, fuel, groundwater), environmental coordination	Bali Provincial BPBD & Dinas Lingkungan Hidup
Regency / City (District)	Bapenda (Tax), Disnaker, Satpol PP, Dinas Pariwisata	NPWPD, PBJT/PHR filings, TDUP, Disnaker registration	Denpasar City / Badung Regency for most Bali PMAs

Local taxes and permits vary between provinces and even regencies, but the core logic is consistent:

no NPWPD = no legal operation at the site level.

3. What is NPWPD (Nomor Pokok Wajib Pajak Daerah)?

The NPWPD is the Local Taxpayer Identification Number, issued by the Regional Revenue Office (Bapenda).

It is the local equivalent of the national NPWP (tax ID), but specifically for taxes managed by the district.

Legal Basis:

• Law No. 1 of 2022 on Financial Relations between Central and Regional Governments
• Regional Tax Regulations (Peraturan Daerah / Perda) of each regency or city
  
  

Purpose:

• To register your business premises under the local tax database.
• To enable the payment of regional taxes (such as PBJT or PHR).
• To allow inspection and verification by the local government.
  
  

Without NPWPD, your company technically cannot collect or remit local taxes — which means it cannot legally invoice or operate within that district.

Example – NPWPD in Practice

Business Type	Example KBLI	Local Requirement	Tax Type	Responsible Office
Villa / Hotel Operator	55900	Must register NPWPD under the Bapenda where property is located	PBJT (Hotel Tax)	Badung or Gianyar Bapenda
Restaurant / Café	56101	Register NPWPD at premises location	PHR (Restaurant Tax)	Denpasar or Badung Bapenda
Consulting Office	70209	NPWPD required for local property tax and signage	Advertising Tax	Denpasar Bapenda
Real Estate Leasing / Co-working	68200	NPWPD required for PBJT or rental tax	PBJT	Bapenda where asset located

In Bali, NPWPD is handled by:

• Bapenda Kota Denpasar – for most commercial areas,
• Bapenda Kabupaten Badung – for Seminyak, Canggu, Jimbaran, Uluwatu,
• Bapenda Kabupaten Gianyar – for Ubud and surrounding regions.

Each office issues a unique NPWPD number (format: 00.xx.xxxx.xx-xxx.xx) tied to your company’s address.

4. NPWPD vs NPWP – How They Work Together

Identifier	Managed By	Scope	Purpose
NPWP	Directorate General of Taxes (DJP)	National income, VAT, corporate tax	National-level taxation
NPWPD	Local Government (Bapenda)	Local taxes: hotel, restaurant, advertising, groundwater, parking	District-level taxation

A PT PMA needs both:

• NPWP – to file monthly and annual corporate income tax.
• NPWPD – to file local taxes based on physical operations.

These systems are not integrated automatically; you must apply separately to the relevant Bapenda.

5. PBJT & PHR – The Core Local Taxes

Two regional taxes apply to most foreign-owned businesses operating physical premises:

A. PBJT (Pajak Barang dan Jasa Tertentu) – Hotel Tax

• Applies to temporary accommodation, including hotels, villas, and guesthouses.
• Calculated as a percentage of the gross rental revenue (usually 10 %).
• Collected from guests and remitted monthly by the operator.
• Payable even if booking platforms (Airbnb, Booking.com) collect payment abroad; the operator must still report the gross amount.
  
  

Example: ​A villa operator earns IDR 200 million gross in April.
​ ​ ​→ PBJT = 10 % × 200 million = IDR 20 million, payable by the 15 th of May.

B. PHR (Pajak Hotel dan Restoran) – Restaurant Tax

• Applies to food & beverage sales consumed on-site.
• Standard rate 10 % of gross sales, excluding VAT.
• The restaurant charges this to the customer and remits monthly.
  
  

Example ​ ​​: ​​A café bills IDR 5 million in daily sales (before VAT).
​ ​ ​ ​ ​ ​→ PHR = 10 % × 5 m = IDR 500 000/day, aggregated and paid monthly.

Local Example (Bali) ​: ​Badung Regency (Perda No. 15/2011) and Denpasar
​ ​ ​ ​ ​ ​(Perda No. 3/2023) ​both fix PBJT/PHR at 10 %.

Other Local Taxes (Depending on Operations)

Tax Type	Description	Typical Sector	Rate Range
Advertising Tax (Pajak Reklame)	For outdoor signage, billboards, and LED boards	All sectors	5–25 % of advertisement value
Groundwater Tax (Pajak Air Tanah)	For wells or bore water usage	Hospitality, manufacturing	20 % of extraction value
Parking Tax	For paid parking facilities	Hotels, malls	20 % of parking fees
Entertainment Tax	For bars, clubs, or ticketed events	Tourism	10–50 % depending on activity

Each of these requires prior NPWPD registration and is enforced by Bapenda inspectors (Petugas Pajak Daerah), who may perform spot audits.

6. Disnaker Registration (Manpower Office)

Once you begin employing staff, your business must also be recorded at the local Department of Manpower (Disnaker)—separate from national BPJS and tax registrations.

Purpose	Requirement	Responsible Office	Notes for Bali PT PMAs
Company Manpower Registration	File a company manpower profile including KBLI, address, and workforce list	Disnaker Kota Denpasar or Disnaker Kabupaten Badung	Issued a unique Company Manpower Registration Number (NPPK) valid 2 years
Workplace Report (Laporan Ketenagakerjaan Perusahaan)	Annual workforce data report	Same Disnaker office	Lists total employees (local & expat), wage ranges, BPJS numbers
Work Accident Reporting	Report any occupational incident within 2 × 24 hours	Same office / BPJS branch	Linked to JKK program verification

Why it matters:

Disnaker registration completes your manpower profile within the province. If you operate without it, the local government can issue a cease-operation letter even if your national licences are valid.

7. Environmental and Zoning Compliance (SPPL, UKL-UPL, AMDAL, SLF)

A. Why Environmental Approval Is Mandatory

Before any PT PMA may operate physically, it must obtain the appropriate environmental instrument under the OSS-RBA risk-based system.

These permits prove that your operations comply with local environmental impact standards and zoning rules.

Instrument	Full Name	Risk Level (OSS-RBA)	Typical Use Cases	Issued By
SPPL	Surat Pernyataan Pengelolaan Lingkungan (Environmental Statement Letter)	Low risk	Offices, consulting firms, co-working spaces	Dinas Lingkungan Hidup (DLH) City/Regency
UKL-UPL	Upaya Pengelolaan Lingkungan / Upaya Pemantauan Lingkungan	Medium risk	Restaurants, small hotels, villa complexes (< 50 rooms)	DLH + OSS
AMDAL	Analisis Mengenai Dampak Lingkungan	High risk	Large resorts, factories, construction > 5 ha	Provincial DLH + Ministry of Environment
SLF	Sertifikat Laik Fungsi (Building Feasibility Certificate)	All physical buildings	Required before operation or rental	Dinas PUPR (Building and Housing Office)

Example – Villa Operator in Badung:

A 10-villa complex under KBLI 55900 (sub-20 rooms) is classified medium risk.
→ Needs a UKL-UPL filed through OSS, approved by DLH Badung, plus an SLF after construction.

Example – Consulting Office in Denpasar:

Classified low risk → only an SPPL required.
Issued within 7–10 working days by DLH Denpasar.

B. Relationship with Other Licences

Environmental approvals are cross-checked when you apply for TDUP (tourism licence), NPWPD, or building registration. Incomplete SPPL/UKL-UPL often delays NPWPD issuance for F&B and villa operators.

8. Step-by-Step: How to Register NPWPD in Bali

Each regency has its own procedure, but the workflow is similar across Bapenda offices.

Documents Required

1. Deed of Establishment + MoLHR Approval
2. NIB from OSS-RBA
3. NPWP (Tax ID)
4. Business Domicile Letter (Surat Keterangan Domisili Usaha)
5. Lease Agreement or Land Certificate
6. KTP and Tax ID of Director / Commissioner
7. Photo of premises and building permit (IMB / SLF)
8. Environmental approval (SPPL / UKL-UPL / AMDAL)
9. TDUP (if hospitality or F&B sector)
   
   

Registration Process

Step	Action	Responsible Office	Duration
1	Submit application with documents	Bapenda front office or online portal	2–5 days
2	Site inspection (optional for F&B / villas)	Local Bapenda officer	3–7 days
3	NPWPD number issued and QR certificate emailed	Bapenda	Within 10 working days
4	Company added to local tax database for monthly PBJT/PHR filing	—	—

Local Note (Badung vs Denpasar):

• Badung Bapenda requires on-site photo verification before issuing NPWPD for hospitality premises.
• Denpasar Bapenda allows remote application via the e-Pajak Denpasar portal if supporting documents are digitally signed.

9. Monthly Reporting & Payment Deadlines

Tax Type	Return Due Date	Payment Deadline	Submission Method
PBJT (Hotel Tax)	15 th of following month	Same day	Manual form or e-PBJT portal
PHR (Restaurant Tax)	15 th of following month	Same day	e-PHR portal
Advertising Tax	Before display period	Before installation	e-Reklame or manual form
Groundwater Tax	Monthly usage report	15 th monthly	e-Air Tanah portal
Parking Tax	Monthly	15 th monthly	Manual form (Badung)

Payment Channels ​ ​: Local banks (BPD Bali), Virtual Account Bapenda, or E-Billing system.
Penalties for Late Payment ​: 2 % per month on unpaid tax + administrative fine of IDR 50 000 – 500 000 per return depending on Perda.

10. Local Audit & Enforcement

A. Routine Inspections

Local revenue officers (Petugas Pajak Daerah) conduct spot audits to compare declared sales with actual transactions (e.g., POS data, booking records, or Odoo reports).

They can request:

• Sales summaries and guest folios
• Bank statements linked to business income
• Copies of leases and licences
  
  

B. Cross-Check with National Tax Data

Under Law 1/2022, local and national tax offices share data through the Joint Tax Portal.

If your PHR/PBJT filings are too low relative to NPWP VAT reports, expect a clarification letter (Surat Teguran).

C. Sanctions and Closure

• Repeated non-filing = temporary closure by Satpol PP.
• Fraudulent under-reporting = back-tax + interest + penalty up to 2 × tax owed.
• Unregistered business = OSS licence suspension via BKPM notification.
  
  

Bali Context: Since late 2024, Badung Regency has stepped up data-matching between booking platforms and PHR filings for villas. Non-registered operators now face immediate NPWPD back-registration and retrospective tax assessment of up to five years.

11. Common Local Compliance Mistakes and How to Avoid Them

#	Mistake	Why It Happens	Risk / Consequence	Corrective Action
1	Operating without NPWPD	Business assumes OSS + NPWP is enough	Treated as unregistered taxpayer; subject to back tax and closure by Satpol PP	Register NPWPD with Bapenda before opening premises
2	Using a virtual office for physical activity	Address does not match zoning	Bapenda rejects NPWPD or issues temporary permit only	Secure zoning-compliant lease and SPPL/UKL-UPL
3	Late payment of PBJT/PHR	Poor coordination between finance and operations	2 % monthly interest + fine up to 500 000 IDR per return	Automate monthly filing calendar and reminders in Odoo
4	Under-reporting sales figures	Cash transactions not recorded in POS	Audit adjustment + double tax penalty	Integrate POS with Odoo Accounting and Bapenda e-filing
5	No environmental permit (SPPL/UKL-UPL)	OSS file incomplete during licensing	NPWPD and TDUP delayed or denied	File SPPL with DLH before local licence application
6	Ignoring Disnaker registration	HR focus limited to BPJS	Labour inspection fine and notice of violation	Submit NPPK to local Disnaker and update every 2 years
7	Missing SLF (Building Feasibility Certificate)**	IMB/SLF not renewed after renovation	Building use deemed illegal; utilities permits revoked	Obtain new SLF through Dinas PUPR post-renovation
8	Treating Bali regencies as one jurisdiction	Multi-location business operates under single NPWPD	Each regency can audit and tax separately	Register one NPWPD per business location
9	Neglecting cross-link with national tax data	Local and national sales reports don’t match	Data-sharing audit between Bapenda and DJP	Align Odoo chart of accounts for NPWP and NPWPD reporting

12. Local Compliance Checklist for PT PMA Employers and Operators

Before Opening

• Verify zoning (“Perda RTRW”) for chosen address.
• Obtain SPPL / UKL-UPL / AMDAL as required.
• Complete building permit (IMB or SLF).
• Register NPWPD with relevant Bapenda (regency of operation).
• Register company and employees with local Disnaker.
  
  

Monthly Operations

• File and pay PBJT and/or PHR tax by the 15 th each month.
• Keep sales and guest records for 5 years for audit.
• Reconcile POS data with NPWP and NPWPD reports.
• Maintain BPJS and payroll filings on schedule.
  
  

Annual Requirements

• Renew SPPL / UKL-UPL if activity changes.
• Renew Disnaker registration every 2 years.
• Conduct internal compliance audit (Q1 each year).
• Cross-check national tax vs local sales before annual SPT.
  
  

Expansion or Relocation

• Secure new SPPL and NPWPD for each new site.
• Confirm zoning and environmental classification before signing leases.
• Update OSS profile to include new location data.
  
  

13. Regulatory References

Domain	Regulation	Key Points
Regional Autonomy	Law No. 23 of 2014	Defines division of authority between central and regional governments
Fiscal Decentralisation	Law No. 1 of 2022	Establishes framework for regional taxes and revenue sharing
Hotel and Restaurant Tax	Perda No. 3 of 2023 (Denpasar) / Perda No. 15 of 2011 (Badung)	Sets 10 % rate for PBJT and PHR
Environmental Permits	GR No. 22 of 2021 + MoE Reg. No. 5 of 2021	Governs SPPL, UKL-UPL, AMDAL procedures
Building Use Certificates	Minister of PUPR Reg. No. 16 of 2021	Details IMB → SLF transition
Manpower Registration	Law 13 of 2003 & MoM Reg. No. 7 of 2021	Requires NPPK and annual workforce report
Tax Coordination	MoF Reg. No. 147/PMK.07/2023	Enables data-sharing between DJP and Bapenda

14.  How SatuSolusi Can Help (Regional & National Integration)

Launching a PT PMA in Indonesia requires navigating two systems that rarely speak to each other — national licensing (OSS, NPWP, BPJS) and regional administration (NPWPD, Bapenda, Disnaker, DLH).

SatuSolusi Consultancy bridges that gap for foreign businesses so operations remain seamless and fully compliant.

Our Local Compliance Services

• NPWPD application and registration across Bali and other provinces
• PBJT / PHR monthly tax filing and automation through Odoo
• Environmental licence ( SPPL / UKL-UPL ) preparation and DLH submission
• Zoning and building (SLF) audit for property and hospitality projects
• Disnaker registration and annual workforce reporting
• Multi-branch licence coordination for operators across regencies
  
  

Why Bali-based investors choose SatuSolusi:

• We maintain active liaison with Bapenda Denpasar, Badung, and Gianyar, and DLH Bali Province.
• We integrate your regional filings with national accounting and tax systems (Odoo ERP implementation).
• We train your local finance and HR teams on monthly compliance rhythm so obligations never fall through gaps.
  
  

Conclusion

NPWPD registration and regional tax compliance close the final gap in your PT PMA’s regulatory obligations. Together with OSS-RBA, BKPM, DJP, and BPJS requirements, these local registrations ensure your business operates lawfully across both national and regional levels — with no blind spots in your compliance profile.

If you’re following this series, Part 1 to Part 5 outlined the full national framework: incorporation, licensing, accounting setup, PSAK reporting, SPT filings, and HR compliance.

This concludes the core compliance roadmap for PT PMA companies. The next cycle of guides will explore operational optimisation, tax planning, and scaling strategies to help foreign businesses grow efficiently in Indonesia.

Questions about regional licensing
or tax? Let’s talk, book a 30-minute consultation at info@satusolusiconsultancy.com