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.
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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.
