Despite recent headlines, Indonesia has no plans to ban Airbnb or other online travel platforms in Bali. Instead, the Ministry of Tourism is shifting its focus toward regulating illegal and unlicensed accommodations operating across major destinations. In this article, you’ll learn what the government actually intends to regulate, how OTA platforms are involved, and what accommodation owners need to know moving forward.

OTAs Remain Strategic Partners

Indonesia’s Ministry of Tourism has clarified that Online Travel Agents (OTAs)—including Airbnb—remain strategic partners in strengthening the national tourism ecosystem. Reports suggesting a suspension or ban of OTA operations in Bali were described as inaccurate and misleading.

Rather than restricting digital platforms, the government recognizes OTAs as essential tools for:

  • Expanding market reach and global visibility.

  • Increasing occupancy rates for compliant businesses.

  • Promoting Indonesian destinations to a diversified audience.

The policy direction is clear: platforms are not the problem—non-compliant operators are.

The Real Target: Unlicensed Accommodations

The ministry’s current priority is identifying and regulating tourism accommodations operating without proper business licenses, as required under Indonesian law. These unlicensed villas, guesthouses, and short-term rentals are viewed as risks to service quality, tourist safety, and fair competition.

Since March 2025, authorities have identified a significant number of illegal accommodations in Bali, Yogyakarta, West Nusa Tenggara, and West Java. In response, the government has launched nationwide efforts focused on:

  • Data collection to map the rental landscape.

  • Guidance and education for local operators.

  • Active supervision of accommodation providers.

Mandatory Licensing Through OSS

To formalize these efforts, the Ministry of Tourism issued Circular Letter No. 4 of 2025, urging all tourism accommodation operators to complete their licensing through Indonesia’s Online Single Submission (OSS) system.

This initiative aligns with Indonesia’s risk-based licensing framework and aims to ensure that all accommodation businesses meet minimum standards for safety, professionalism, and tax compliance.

OTAs Required to Enforce Compliance

Following coordination meetings with OTA representatives in October 2025, the government formally requested platforms to ensure that all listed accommodations are properly licensed.

The Critical Deadline

A clear deadline has been set: by 31 March 2026, all accommodations marketed through OTA platforms must possess valid business licenses. Listings that fail to comply will be removed from OTA platforms.

To support this transition, the government and OTAs have agreed on joint actions such as licensing education, registration assistance, and targeted outreach to accommodation providers.

Why Licensing Matters Beyond Paperwork

The Ministry emphasized that licensing is not merely administrative. Licensed accommodations contribute to regional and national tax revenues, support public services, and create a fairer tourism economy.

Bali Governor I Wayan Koster has previously noted that the rapid growth of unregistered villas has weakened the government’s ability to collect revenue—especially as foreign tourist arrivals continue to rise while hotel tax income lags behind.

What This Means for Bali’s Tourism Industry

There is no Airbnb ban—but there is a tightening of enforcement. Bali’s tourism future is moving toward greater regulation, transparency, and accountability, particularly in the short-term rental market.

For accommodation owners, the message is simple: get licensed or get delisted.

If you operate, invest in, or plan to develop accommodation in Bali, compliance is no longer optional—it’s the foundation of staying competitive in the island’s evolving tourism landscape.