Why did Bali consider banning Airbnb?

Bali considered banning Airbnb to manage the surge in tourism, which led to traffic jams, environmental damage, and rising living costs.

What is Indonesia's decision on Airbnb in Bali?

Indonesia's government rejected Bali's plan to ban Airbnb rentals, stating they are important for tourism, and instead mandated licensing and tax compliance.

What are the new rules for Bali property owners?

Villa and guesthouse owners in Bali must now obtain proper licenses, meet service standards, and pay taxes, with non-compliant properties facing delisting.

Home / Business and Economy / Indonesia Overrules Bali: Airbnb Stays, Owners Must Comply

Indonesia Overrules Bali: Airbnb Stays, Owners Must Comply

11 Dec, 2025

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Summary

Indonesia's government rejects Bali's proposed Airbnb rental ban.
Owners must obtain licenses, meet standards, and pay taxes.
Non-compliant properties will be delisted by Airbnb.

Indonesia Overrules Bali: Airbnb Stays, Owners Must Comply

Bali's proposed ban on Airbnb rentals has been rejected by the Indonesian government, which emphasizes the vital role of such platforms in boosting tourism. The government's stance prioritizes continued operations of online travel agencies, signaling a commitment to supporting the nation's largest economy.

Authorities in Bali will instead implement stricter regulations. Villa and guesthouse owners will be required to secure proper licenses, adhere to defined service standards, and fulfill their tax obligations. This approach aims to regulate the burgeoning short-term rental market without resorting to a complete prohibition.

Properties found to be non-compliant with these new regulations will face delisting from platforms like Airbnb. This decision comes as Bali grapples with the overwhelming effects of increased tourism, including traffic congestion and environmental strain, prompting local leaders to seek solutions for sustainable growth.