bali airbnb

Bali Airbnb: Governor Koster Proposes Ending Digital Accommodation Services in 2026

Share:

Bali Governor Wayan Koster has announced that he will propose stopping Airbnb-style accommodation services across the island, arguing that digitally marketed lodgings do not contribute to Regional Original Revenue (PAD).

Koster made the statement during the 15th Regional Conference of the Indonesian Hotel and Restaurant Association (PHRI) Bali in Denpasar on Wednesday, 3 December 2025.

“We will review it and propose that it be stopped,” he said, as quoted by Antara.

According to him, accommodation managed through digital platforms affects regional income, particularly revenue from hotel and restaurant taxes.

Koster noted that tourist arrivals are increasing, yet official hotel occupancy rates are not rising at the same pace. He said this mismatch is linked to the large number of online-based lodgings operating outside formal regulations.

He stated that there are more than 2,000 unlicensed hotels and villas operating in Bali. These establishments, he said, must be monitored and included in regulatory oversight.

“Airbnb doesn’t fully support Bali’s local economy; that’s what’s happening now. Not to mention those that are illegal and unscrupulous. We will regulate them all, with no mercy. We must work together; it’s not just the government’s responsibility, but everyone’s,” he said in his address to PHRI members.

Koster encouraged collaboration between industry players and the provincial government to ensure that accommodation businesses contribute to Bali’s tax base. He added that the use of digital platforms to advertise daily rentals has created competition with regulated hospitality operators.

Industry Responds as Data Shows Imbalance in Accommodation Sector

PHRI Bali Chairperson Tjok Oka Artha Ardana Sukawati shared that his organisation currently has 378 registered accommodations, a figure that contrasts sharply with an estimated 16,000 properties marketed online.

Oka said that online accommodation practices include situations in which foreigners rent homes or villas and then re-list them as daily rentals via digital platforms. “

This is very detrimental, as the increasing trend in tourist visits is not in line with regional revenue and occupancy rates,” he said.

Data from the Bali Provincial Office of the Directorate General of Treasury (DJPb) shows that Bali’s PAD reached IDR 15.3 trillion as of October 2025, or 71 per cent of the total budget of IDR 21.5 trillion.

The realisation grew 9.58 per cent compared with the same period in 2024. Regional taxes contributed IDR 12 trillion, with IDR 7.13 trillion coming from the Certain Goods and Services Tax (PBJT), which includes food, beverages, hotels, arts, and entertainment.

In a separate statement quoted by BeritaBali.com, Koster reaffirmed his intention to address online accommodation operations. “We will review it, and we will propose that it be stopped,” he said.

Koster said that some private houses and villas are being rented to foreigners at low prices because owners do not pay taxes. He argued that this situation puts licensed hotels, which comply with tax rules, at a disadvantage.

Find this article helpful? Check out our other articles from Social Expat!

Related News

A forest fire in the Ranu Kembang Block area of Mount Semeru, East Java, has prompted the temporary closure of all hiking trails and the evacuation of hikers from the mountain. The fire was detected on the night of Wednesday, 26 August 2026, in an area close to the Mount Semeru hiking route. Following the […]

An Australian national has been arrested at I Gusti Ngurah Rai International Airport in Bali after video footage depicting an indecent act outside a local resident’s property went viral across social media platforms. The incident occurred in Gang Family, situated off Jalan Pantai Berawa in Tibubeneng Village, North Kuta, Badung Regency. CCTV footage captured a […]

Jakarta is facing a busy day of public demonstrations on Thursday, 27 August 2026, with police preparing for 62 public-assembly activities across the capital and surrounding areas. For expats living, working or travelling in Jakarta, the main concern is likely to be traffic disruption and avoiding areas where crowds are gathering. The demonstrations are taking […]

The US Centers for Disease Control and Prevention (CDC) has issued a Level 2 Travel Health Notice over the risk of Zika virus in Bali, advising travellers to take precautions against mosquito bites. Indonesian authorities, meanwhile, have confirmed that no Zika cases have been reported in Bali to date. The advisory, issued on August 7, […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery