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Indonesia against the idea of banning Airbnb accommodation in Bali

Thursday, 11 December 20253 min read
Indonesia against the idea of banning Airbnb accommodation in Bali

The Indonesian government has pushed back against Bali’s proposal to ban Airbnb rentals, saying short-term rental platforms remain essential to supporting tourism in Southeast Asia’s largest economy. The information was recently reported by news agency Reuters.

Instead of imposing a prohibition, national regulators plan to encourage villa and guesthouse owners on the resort island to obtain proper licenses to ensure they meet service standards and fulfill tax obligations, the Tourism Ministry said in a statement on Dec. 8. Officials said Airbnb will be asked to remove listings whose owners fail to comply with local rules.

The government has never banned, and does not intend to halt, operations of online travel agencies in Indonesia,” the ministry explained, seeking to clarify its position amid rising public debate.

Bali Governor I Wayan Koster declared last week to Indonesia news agency Antara that the provincial government was weighing a ban on Airbnb-style accommodations as the island struggles with rapid growth in visitor numbers. He argued that the proliferation of unregistered short-term rentals has diverted tax revenue away from traditional hotels, even as international arrivals surge.

Bali remains Indonesia’s tourism powerhouse, drawing 45% of the country’s 1.3 million foreign visitors in October, according to official data. But the influx has brought challenges, including worsening traffic congestion, environmental strain and higher living costs, intensifying pressure on local officials to tighten oversight of the sector.

(Source: Reuters)