Indonesia’s Bali wants illegal rentals to be legitimate as operators flag red tape
Authorities want to help unregistered accommodation providers secure permits to plug the tax collection gap
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.
The 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.
To 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.