Over the past week, Bali’s tourism and property community has been shaken by dramatic headlines claiming that Governor I Wayan Koster intends to “ban” Airbnb in Bali.
Several media outlets ran with statements such as “Bali to Close Airbnb!” — creating a wave of confusion among investors, hospitality operators, and everyday residents. But once the noise is cleared away, the real story is much more nuanced — and far less alarming.
What Governor Koster Actually Said
During the recent PHRI Bali Conference, Governor Koster addressed a long-standing problem that is well known within the industry : the rise of illegal accommodation units operating without permits, without zoning compliance, and without contributing to local tax revenues (PHR).
His message was clear:
- Many accommodations listed on Airbnb-type platforms do not have legal permits.
- Many operators do not pay PHR tax, which undermines Bali’s regional revenue.
- Some properties are illegally sub-let by foreigners, undercutting hotels and legally compliant villas.
- Enforcement has been weak, allowing a shadow market to grow.
This is a real issue that affects both Bali’s economy and the credibility of its tourism sector.
A Reporter Asked: “Will You Stop Airbnb?”
After the speech, one journalist pushed the Governor with a direct question:
“Will you stop Airbnb?”
To which he answered: “Yes.”
This one-word response — given without context — became the foundation of the sensational headlines that followed.
But we must remember: He had just spent several minutes speaking specifically about illegal operators.
The “yes” almost certainly referred to stopping illegal accommodation activity, not shutting down Airbnb as a global platform.
Why a Total Ban on Airbnb Doesn’t Make Sense
Legally, a provincial governor cannot ban a global digital platform. Only national ministries such as Kominfo or Kemendag have this authority. No such directive has been issued.
Operationally, Airbnb is simply a marketplace. What can be regulated — and what Koster was clearly referring to — is:
- Licensing
- Zoning (KKPR)
- PHR hotel tax
- Legality of property use
- Compliance of operators
These are reasonable and necessary regulatory tools.
The Problem: Headlines & Politics Beat Facts
Sadly, what followed the conference became a predictable pattern:
- Click-bait headlines prioritised controversy over accuracy.
- Some politicians and commentators amplified the misunderstanding to fuel their own narratives.
- Social media recycled the simplified version: “Bali bans Airbnb,” leaving out all context.
This harms public confidence, confuses investors, and undermines trust in Bali’s policy environment.
What Should Investors and Property Owners Know?
1. Legal Airbnb operations are not under threat.
2. Illegal, unlicensed, untaxed accommodation is what the Governor is targeting.
3. Enforcement will likely increase — meaning compliance is more important than ever.
4. Bali is not moving away from digital platforms — it is moving toward better regulation.
What Bali Actually Needs: Clarity, Not Chaos
The real solution lies in:
- Transparent enforcement
- Proper licensing education
- Collaboration between government, industry, and communities
- Aligning with national risk-based licensing (PP 28/2025)
- Protecting legal operators while curbing tax evasion
At Seven Stones Indonesia, we believe that sustainable tourism and a fair playing field depend on compliance — not confusion.
Final Word
Airbnb is not being banned in Bali. What is being addressed is the long-ignored issue of illegal accommodation operations — and that is ultimately a step in the right direction for Bali’s tourism future.
Seven Stones Indonesia will continue to monitor policy developments and provide accurate, balanced updates for our clients and partners.