Indonesian Tourism Ministry Rejects Bali’s Dreams To Ban Airbnb

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Bali’s Governor Wayan Koster has been considering banning the accommodation booking platform Airbnb in the province.

The proposal has caused panic across the tourism sector, and the Indonesian Ministry of Tourism has stepped in to confirm its approval of the company as an essential business partner.

Speaking to reporters last week, the Governor of Bali, Wayan Koster, suggested that Airbnb could be banned in the province.

Governor Koster and the Provincial Government are on a mission to crack down on illegally operating accommodation businesses in Bali, and are concerned that some dodgy business owners are using Airbnb as the platform to generate bookings.

Governor Koster has concerns that some properties registered on the platform are not paying sufficient taxes, and could have violated building regulations and spatial planning laws. 

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Governor Koster told reporters that, based on provincial government investigations, there are more than 2,000 unlicensed hotels and villas operating in Bali that must be brought into alignment with regional and national regulations.

He explained, “Airbnb isn’t fully supporting Bali’s local economy, that’s what’s happening now. Not to mention those that are illegal and unscrupulous. We will take action against them with no mercy. We must work together; it’s not just the government’s responsibility, it’s all ours.”

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However, these comments have caught the attention of both Airbnb and the Indonesian Tourism Ministry, who have spoken out and given their support for the platform. The Ministry of Tourism has confirmed, “The government has never banned, and does not intend to halt, operations of online travel agencies in Indonesia.”

Nevertheless, accommodation businesses in Bali are being urged to ensure their paperwork is all in order and that all relevant licenses, permits, and taxes are being paid properly. Following up on a Coddiantion Meeting held between the Ministry of Tourism and Online Travel Agents (OTAs), including Airbnb, in October, updated guidance has been issued this week.

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Indonesia’s Tourism Minister Widiyanti Wardhana shared, “Business legality is not just an administrative formality. Permits through the OSS system are a prerequisite for tourism accommodations to meet safety, professionalism, and fiscal standards, which directly impact Regional Original Income (PAD) and Central Government tax revenue.”

The Ministry of Tourism reiterated that in managing the tourism industry, the government continues to prioritize collaboration, not restriction, to create an inclusive, high-quality, and globally competitive tourism industry.

Tourists traveling to Bali can confidently make accommodation bookings through Airbnb and other online accommodation platforms. Airbnb has been present in Bali for over a decade, and the company has this year partnered with UNESCO to help promote Balinese culture to travellers and tourists. 

Back in September, Airbnb and UNESCO launched the “Bali Cultural Guidebook” to support tourists during their travels and help them explore lesser-visited cultural destinations.

Speaking at the launch of the initiative, Mich Goh, Director of Public Policy for Airbnb Asia Pacific, shared, “At Airbnb, we believe that travel becomes more meaningful when we can create genuine connections, not just with places but also with people and cultures.”

The guidebook was created after intensive cultural mapping conducted by UNESCO in the second half of 2024.

The investigation, research, and mapping documented everything from local cuisines and arts and crafts to living traditions and historical sites across five regions of Bali, of most interest to tourists: Badung Regency, Bangli Regency, Buleleng Regency, Gianyar Regency, and Tabanan Regency. 

This is not the first time that Bali Governor Wayan Koster has threatened to ban Airbnb. While the provincial government’s mission to crack down on illegally operating businesses, especially those in the tourism sector, will continue, tourists must opt for the accommodation that is right for them.

Irrespective of the current crackdown in Bali, it is highly advisable that tourists book accommodation after they have taken out a travel insurance policy.