Indonesia’s Bali wants illegal rentals to be legitimate as operators flag red tape

AdvertisementIndonesiaThis Week in AsiaLifestyle & CultureIndonesia’s Bali wants illegal rentals to be legitimate as operators flag red tapeAuthorities want to help unregistered accommodation providers secure permits to plug the tax collection gap 3-MIN READ3-MIN ListenResty Woro YuniarPublished: 5:48pm, 16 Apr 2026Indonesia’s push to bring thousands of unlicensed tourist stays into the legal fold is running into a familiar administrative obstacle in Bali, with operators saying the government wants faster compliance than the bureaucracy could allow.In December, the Ministry of Tourism said unlicensed accommodation providers in Bali, Yogyakarta, West Nusa Tenggara and West Java had until March 31 to register their hotels, guest houses, villas and homestays, in a move meant to improve service quality, protect visitors and create fairer competition. Those that failed to comply risked being delisted from online travel agency platforms such as Airbnb and Booking.com.AdvertisementThe announcement came after Bali Governor I Wayan Koster said he wanted to ban Airbnb, arguing that the platform enabled unlicensed accommodation businesses to earn untaxed income. The central government has given operators more time, as thousands of unregistered villas and other lodgings try to navigate what many say is an impractical regulatory process. AdvertisementTo support the effort, Bali’s provincial government launched a Tourism Business Licensing Audit programme to help unregistered accommodation providers secure permits while ensuring licensed businesses comply with existing rules and Balinese traditions. AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x