JAKARTA/BALI — The Indonesian government has rejected a proposal by the Bali provincial government to ban Airbnb rentals, saying that the platform plays an important role in the tourism ecosystem and should continue operating across the island.
The proposal, put forward by Bali Governor I Wayan Koster, aimed to stop Airbnb-style short-term rentals on the popular holiday island, arguing that many such properties operate without proper licenses, do not pay hotel taxes and fail to contribute to local revenues. Bali officials warned that unregulated rentals could weaken the income of licensed hotels and complicate efforts to manage tourism sustainably.
Indonesia’s Ministry of Tourism intervened in the debate and rejected the idea of an outright ban. They stated that online travel platforms like Airbnb remain vital for attracting visitors and supporting the broader tourism economy. Officials said that instead of banning these platforms, authorities will focus on stronger regulation and ensuring compliance with licensing and tax rules.
Under the agreed approach, villa and guesthouse owners listed on Airbnb will be required to obtain proper permits, comply with service standards, and pay applicable taxes. Properties that fail to meet regulations may be delisted from Airbnb and similar online travel agencies, according to statements from the tourism ministry.
Tourism industry stakeholders had expressed concern about the impact of a possible ban. They said digital platforms help travellers access more accommodation options and support local guesthouse owners and small-scale hosts.
The discussion shows efforts to balance tourism growth with fair rules in Bali. While local authorities worry about unlicensed rentals and revenue loss, the central government is choosing to improve regulations rather than introduce a ban.
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