Bali’s tourism sector continues to show strong growth, but it is accompanied by a number of pressing issues. Governor Wayan Koster highlighted issues such as waste, traffic, environmental strain, and tourist misconduct, which increasingly threaten the sustainability of Bali’s tourism.
In response, Governor Koster has proposed a draft regional regulation aimed at comprehensive restructuring of the tourism sector. He presented this initiative during the 31st Plenary Session of the Bali Provincial Regional People’s Representative Council on Monday (April 6).
The session was chaired by Dewa Made Mahayadnya, head of the council, and included the Governor’s explanation of two draft regulations: one on the governance of high‑quality tourism businesses in Bali, and another amending Regional Regulation No. 1 of 2024 concerning local taxes and levies.
“This is an urgent step we must take to ensure the long‑term sustainability of Bali’s tourism. Tourism contributes significantly to Indonesia and to Bali’s economy. If we neglect this, it means we are neglecting the future of the next generation, especially their livelihoods,” said Governor Koster.
Compliance Filter for Your Bali Property Investment
For foreign investors, this is an important signal. Bali Property Investment is no longer just about buying in a good location. It is now about making sure the business behind the property is properly structured, licensed, and compliant.
That includes villas, guesthouses, tourist accommodation, and other property-linked businesses. And to see if your Bali property investment is ready for this new era, you have to pass compliance filter anchored by 3 critical regulations:
- KBLI 2025: Defining Your Bali Property Investment
Think of this as the “Identity Phase.” The update to KBLI 2025 is essentially the government asking, “Who are you, and what exactly are you doing here?” Under the new codes (like 55203 for Villas), the government ensures every business is correctly identified.
If your paperwork says you’re a shoe shop but you’re actually running a luxury rental, your Bali property investment will get flagged by the digital filter.
- Perda Bali No. 4/2026: Protecting Your Bali Property Investment
In English, it’s called Bali Regional Regulation No. 4/2026. The policy bans the conversion of productive agricultural land into villas or commercial property and prohibits nominee land ownership agreements.
This law is the ultimate enforcer of Bali land zoning rules and provides the legal “teeth” to bite back against nominee structures. It ensures that your Bali property investment is not just in the right zone, and held under a legitimate legal entity like a PT PMA.
- Permenpar No. 6/2025: The Standard for Your Bali Property Investment
This is the final exam. Permenpar No. 6/2025 or Minister of Tourism Regulation No. 6/2025 on Standards, Supervision, and Sanctions in Risk‑Based Tourism Licensing sets the bar for professional management and operational standards. It’s the rule that forces OTAs (like Airbnb and Booking.com) to delist properties that don’t have a verified NIB.
It ensures that every Bali property investment isn’t just a building, but a high-standard, professionally managed business that respects the island’s tourism ecosystem.
Reality Check for Your Bali Property Investment
When you look at these three layers together, it becomes clear that a property can look attractive and be in a prime location, but still be a “ticking time bomb” if it isn’t compliant. For any Bali property investment, these regulations imply five critical questions you must answer:
- Is the land zoning suitable for tourism use according to Perda 4/2026?
- Is the business properly classified under the new KBLI 2025 codes?
- Is the accommodation legally licensed to operate under Permenpar 6/2025?
- Is the ownership structure exposing you to unnecessary risk (Nominee vs. PT PMA)?
- Is the property allowed to be listed on OTA platforms like Airbnb?
These are not small details. They determine whether your business runs smoothly or becomes a target for enforcement action.
Bali Property Investment and the Need for a Compliance Check
Bali is definitely still open for business and foreign investment, but the rules are sharper now. If you are considering Bali Property Investment, get in touch with Seven Stones Indonesia today for your compliance check.
Before you launch or expand a villa or tourist accommodation business, we can assist you to review the land status, KBLI classification, licensing, zoning, and ownership structure. That is the best way to avoid future problems and protect the value of the investment.