There is a lot of talk happening in Bali right now about policy changes that could affect Airbnb listings.
For more than five years, leaders in Bali have been working to crack down on accommodation providers operating outside the law, including some listings on Airbnb.
For leaders in Bali, the presence of Airbnb has long been a contentious issue. While the platform is legal in Indonesia, and the company is an official partner of the national tourism board, some leaders in Bali have had issues with the booking platform.
This is because of ongoing concerns that some listings are not compliant with local business licensing laws, and concerns that listings are being owned, operated, and therefore profited from by hosts based outside of the province. This, in turn, as local leaders have been concerned about, would drive down local tax revenue.
As of 31st March 2026, all private rental properties in Bali Province, including Airbnb listings, must be able to show their NIB (Business Identification Number) and a KBLI (a code that defines what the business can and cannot do).
While most accommodation businesses and private rental villas registered on online booking platforms like Airbnb operate legally, local leaders and stakeholders in the accommodation sector are concerned that many do not.
If a rental properly listed on Airbnb has not added its NIB and KBLI to its listing by the 31st March 2026, it could be removed from the site.
Tourists who have bookings pending on Airbnb are within their rights to contact their host to confirm that these licences and permits are complete and that there will be no issue with their booking come vacation time.
Since Bali has experienced a surge in tourism following the pandemic, there are concerns that many villas and vacation rental properties have been built without the required construction and development permits and are operating without the required business licenses and permits.
To help combat the issue and enable tourists to book with greater confidence, while ensuring that all vacation property rental owners and companies are compliant with the law, Bali’s Villa Rental & Management Association set up an accreditation system and a status check website for guests who want to double-check their booking is all above board.
Back in January 2026, the Bali Villa Rental & Management Association (BVRMA) confirmed that it had been receiving an increasing number of reports of villa fraud and scamming on the island, with more than 100 open cases.
The Chairman of the association, Kadek Adnyana, told reporters his forecast for a worst-case scenario if serious action is not taken quickly.
He shared, “Bali’s tourism image will definitely plummet. Because if something like this and that happens and it’s exposed on social media, it becomes public knowledge, it becomes global knowledge. Ultimately, Bali’s image will inevitably be tarnished as an unsafe tourist destination.”
He noted, “The losses are already hundreds of millions of rupiah for tourists alone. A single booking can be worth anywhere from 10 million to hundreds of millions of rupiah. The villas on offer are quite luxurious and quite expensive.”
According to Adnyana and his team, one of the safest way for tourists to book private villas in Bali is directly with the property, or via a reputable online provider, after checking the property’s status on the BVRMA Official website. This process is quick and simple to complete, enabling tourists to book with confidence and supporting businesses that play an active role in the local economy.
Airbnb remains a safe and reputable platform to book stays in Bali, and following speculation that the province was set to ban the platform in December 2025, the Indonesian Ministry of Tourism clearly confirmed, “The government has never banned, and does not intend to halt, operations of online travel agencies in Indonesia.”
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Made in Made
Monday 23rd of March 2026
What’s not mentioned here is that the government has partnered with the tech companies to build a data base of every Airbnb transaction ever preformed on every villa and every host on the island. With this they can determine who hasn't been submitting the tourism tax. All of the business license violations are secondary to the back tax agenda. I do not believe people quite understand what’s going on. No more customizing scooters lol.
Randy
Monday 30th of March 2026
@Exp, you do not even own an Airbnb Villa to know the inside facts. But you pretend to talk as if you are defending the foreigners who may need to follow the rules. An NIB license is needed now thanks to unscrupulous foreigners in Bali exposing their some level of greed.
M
Tuesday 24th of March 2026
@Made in Made, the fun fact is that this is something which is enforced in whole Indonesia. Good luck by working down the list... more than else they should now really remove all the illegal buildings, not just try to milk the cow and leave afterward the problems unresolved as ever.
Exp
Monday 23rd of March 2026
@Made in Made, Foreigners are (to make it simple) not permitted to run a short term villa rental business in the first place?
It will not be "legal" business even if they are "forced to pay taxes". Who are getting the "tax" money if the money cannot be recorded under a legal business?
When they finally get rid of all the foreign owned short term rental villas they will discover 1. The local villa owner too are not paying much taxes as they bother even less with permits. 2. Huge unemployment among locals. 3. Spike in hotel rates. 4. Less tourists as Bali will be unaffordable.
Ferdi
Monday 23rd of March 2026
‘ there are concerns that many villas and vacation rental properties have been built without the required construction and development permits and are operating without the required business licenses and permits’
Oh there are concerns! I guess this new information has only just come to light. Who would have thought this had happened?!? I think no one had any suspicions.
Good job the authorities are always on the ball.
Exp
Monday 23rd of March 2026
The problem right now is that just before Nyepi, the Denpasar gov. decided to stop picking up organic waste. We can compost to some degree, but the locals in our area apparently do not. So now a lingering smell of decaying waste. Visited Sanur and I spotted piles of trash and trash fires meters from the beach.
This is heading into a health emergency.
Randy
Monday 30th of March 2026
@Exp, most of the workers in construction and other trades in Bali are Javanese and went home during the Eid holidays. Lazy Balinese people do not work. Regardless since they are all back now, things will be back to normal again.
So YES no need to bash Javanese like many Aussies would do...just simply they are not not HIndus.
Chubs
Tuesday 24th of March 2026
@Exp,Not just organic but other waste removal is a problem, My brother inlaw in Denpasar who looks after his elderly father who is completely incontinent and relies on adult nappies is having a problem of trash not being picked up on a regular basis due to no where to take it … so as well as having the stress of looking after a demented, difficult and incontinent father he also has to find creative ways to dispose this waste… Your spot on “ This is heading into a health emergency” .
Alan
Sunday 22nd of March 2026
On balance this is a good move because nobody wants illegal operators who don't pay tax, however the current situation means that even if a villa is registered to pay tax, if it is owned by a foreigner there is no KBLI code available which allows short term rental. Why? If this situation continues it will cause unemployment for local workers, reduced investment and less tourists to the island, so all businesses will suffer.
Randy
Monday 30th of March 2026
@Alan, KBLI will state as tourist lodging on Airbnb once you have acquired the NIB license.
Shorty
Saturday 21st of March 2026
Very few if any tourists will check BVRMA website.