The Indonesian government rejected Bali’s plan for an Airbnb ban. Officials called these services necessary for tourism growth.
The Ministry of Tourism announced no ban on Airbnb or Booking.com. This decision counters the wishes of Bali’s leaders. Authorities will enforce stricter rules. Platforms must remove villas or rooms that ignore tax and safety laws. “The government has no intention of banning Airbnb,” ministry officials said. Platforms must remove illegal listings and share tax data.
Bali’s Governor Wanted a Total Shutdown
This conflict follows months of frustration on the island. Bali Governor Wayan Koster proposed a total ban on short-term rentals. He said that Airbnb hurts hotels. He also claimed the listings raise the living costs for locals.
Bali welcomed about 585,000 foreign visitors in October. This was 45 percent of Indonesia’s total arrivals. Many tourists stayed in unlicensed villas booked online. Koster says more than 2,000 properties operate illegally. Foreign leaseholders often sublet these places at high prices.
“Airbnb does not fully support the local economy in Bali,” Koster said. He cited illegal activities and promised strict action.
Local leaders blame the rental boom for traffic and water shortages. They see environmental damage in Canggu, Seminyak, and Ubud.
Jakarta Chooses Growth over Restrictions
But the central government supports short-term rentals. They help meet President Prabowo Subianto’s target of 14-17 million visitors in 2025. Tourism contributes about 5 percent of GDP. Jakarta does not want to scare away budget travelers.
The new policy rejects an Airbnb ban and will require all hotels and villas to hold a national license and local permits, rorce platforms to check and display license numbers, fine owners and remove listings that break rules, and collect taxes using data shared by the platforms.
Experts say the plan satisfies neither side. Bali officials wanted a crackdown. Property owners feared a total ban.
Villas in Seminyak and guesthouses in Ubud will remain available. Only unlicensed properties must disappear. It is unclear if officials will enforce these rules. The province has a history of loose oversight.
