Best Airbnb Markets in Indonesia (2026)

Based on Airbtics data from January 2025 to December 2025, this page shows the top Airbnb locations to invest in Indonesia with key statistics and information, like short-term rental regulations, number of listings, occupancy rate, average daily rate, and annual revenue. This allows you to discover the most profitable cities to invest in, buy, and own Airbnb rental properties in Indonesia.

The Airbtics Market Score indicates how attractive a location is for investing in an Airbnb rental property. We determine this score based on the following criteria:

  1. Short-term rental yield: The ratio between annual revenue and property price, as a percentage. Locations with higher Airbnb rental yield score better.
  2. Short-term rental regulations: How STR-friendly the local Airbnb rules and laws are. Markets with more lenient regulations get a higher score.
  3. Market size: The number of Airbnb listings. Larger vacation rental markets get a higher score as it is easier for investors to buy and sell properties.
  4. Growth: How fast the market is becoming saturated. Priority is given to markets that are already developed but are not approaching saturation yet.
  5. Seasonality: To what degree Airbnb performance is affected by seasonality. Less seasonal impact is preferred as investors can enjoy a more stable short-term rental performance throughout the year.
Learn more about how we collect the data and accuracy

Last updated: February, 2026

Indonesia Short-Term Rental Market Overview (Full-Year 2025 Analysis)

National averages across all Indonesia markets
Average Occupancy Rate i
47.29%
Average Annual Revenue i
IDR156,312,282
Average Daily Rate (ADR) i
IDR828,166
YoY Supply Growth i
32.13%
YoY Revenue Change i
-4.53%

Top 7 Indonesia Cities for Airbnb in 2026

Position Market Grade Market Name Regulation No of Listings Avg. Occupancy Rate Avg. Daily Rate Revenue Short-term Rental Yield Rent Gap
1CBali
Lenient
38,64063%IDR1,461,469IDR340,067,71412.3%34.5%
2D+Jakarta
Lenient
3,67951%IDR617,064IDR117,469,67012.3%34.5%
3D+Bandung
Lenient
2,79433%IDR1,023,028IDR125,459,03712.3%34.5%
4C+Lombok south
Lenient
99464%IDR1,266,606IDR297,701,33712.3%34.5%
5CBatam island
Lenient
91637%IDR552,110IDR76,954,48812.3%34.5%
6CSurabaya
Lenient
75144%IDR454,679IDR75,070,81612.3%34.5%
7D+Tangsel
Lenient
47939%IDR422,202IDR61,462,91112.3%34.5%

Find the Best Airbnb Markets with Our Interactive Tool

Use our interactive Market Explorer to find the best places to start an Airbnb in Indonesia. Compare multiple markets side by side, apply filters like regulations, budget (property or rent prices), and market size, and even export the results to Excel.

Explore Interactive Tool

📊 Want a deeper dive into Indonesia's STR market?

Explore our comprehensive 2025 Short-Term Rental Market Report for Indonesia, featuring detailed market trends, supply analysis, and year-over-year insights.

View 2025 Market Report

Why Invest in Airbnb Indonesia in 2026?

In recent years, Indonesia has emerged as one of the best locations for investing in short-term rentals thanks to its popular tourist attractions, thriving business activities, growing digital nomad presence, and vibrant cities like Bali, Lombok south and Bandung. With millions of international visitors coming each year, the demand for vacation rental accommodations is growing, making Airbnb Indonesia a lucrative option for both local and foreign investors.

Due to strong demand from travelers, Indonesia offers competitive average daily rates (ADR), healthy occupancy rates, and attractive revenue potential in the best Airbnb markets. Whether you're looking to start your first Airbnb business with a modest budget or to add a luxury short-term rental property to your portfolio, Indonesia has a profitable location to meet your budget and aspirations as an investor.

Market Saturation Analysis: Indonesia

Benchmark: Markets are categorized relative to Indonesia's national averages (Supply: +32.1%, Revenue: -4.5%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • Lombok south Supply: +41.1% | Revenue: +8.2%
  • Surabaya Supply: +40.3% | Revenue: -2.5%
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • No markets in this category
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Tangsel Supply: +28.6% | Revenue: -0.9%
  • Jakarta Supply: +28.3% | Revenue: -4.3%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Bali Supply: +27.7% | Revenue: -15.0%
  • Bandung Supply: +27.3% | Revenue: -12.4%
  • Batam island Supply: +31.5% | Revenue: -4.8%

Best Cities for Airbnb in Indonesia by Budget

Top 3 Affordable & Mid-Range Airbnb Markets: $500,000 & Below

These markets offer accessible investment opportunities with lower to moderate property prices, suitable for investors seeking entry-level or mid-range options.

  1. Bandung
    • Property price: IDR1,217,891,250
    • STR revenue: IDR125,459,037/year
    • Yield: 7.8%
  2. Batam island
    • Property price: IDR1,217,891,250
    • STR revenue: IDR76,954,488/year
    • Yield: 9.2%
  3. Surabaya
    • Property price: IDR1,217,891,250
    • STR revenue: IDR75,070,816/year
    • Yield: 8.7%

Top 3 Best Places for Airbnb Arbitrage in Indonesia

  1. Bali
    • STR revenue: IDR340,067,714/year
    • Rent gap: IDR66,311,255
  2. Lombok south
    • STR revenue: IDR297,701,337/year
    • Rent gap: IDR55,542,661
  3. Batam island
    • STR revenue: IDR76,954,488/year
    • Rent gap: IDR35,540,827



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