Bali is Removing Unlicensed Airbnb Listings: Everything Villa Owners Need to Know in 2026
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Bali Removing Unlicensed Airbnb Listings | 2026 Compliance Guide
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Bali is enforcing new rules requiring Airbnb and Booking.com listings to be licensed. Learn the legal requirements, deadlines and how to register.
Bali Is Removing Unlicensed Airbnb Listings – Here’s What Every Property Owner Needs to Know
Bali’s short-term rental market is entering its biggest regulatory change in years.
Contrary to sensational headlines, Airbnb has not been banned in Bali. Instead, the Indonesian Government has introduced stricter enforcement requiring all short-term accommodation providers to operate legally. Properties without the required licences and registrations face removal from online booking platforms such as Airbnb and Booking.com.
For villa owners, investors and property managers, this represents a significant shift from years of relatively inconsistent enforcement towards a far more regulated tourism industry.
In this guide we’ll explain:
- Why Bali is removing unlicensed listings
- Which properties are affected
- The legal requirements
- How to register your property correctly
- What happens if you don’t comply
Is Airbnb Being Banned in Bali?
No.
The Indonesian Ministry of Tourism has confirmed that Airbnb, Booking.com and other Online Travel Agencies (OTAs) remain legal.
The enforcement targets illegal accommodation businesses, not the booking platforms themselves.
Properties that cannot demonstrate they meet Indonesia’s licensing requirements may be removed from OTA platforms, meaning they can no longer legally advertise short-term accommodation online.
This distinction is important.
The government is not preventing tourists from booking villas.
Instead, it is ensuring accommodation providers operate under the same legal framework as hotels and licensed hospitality businesses.
Why is Bali Cracking Down?
Several factors have driven this new enforcement campaign.
1. Tax Revenue
Thousands of villas have been operating without registering accommodation businesses or paying applicable hospitality taxes.
According to industry estimates cited by legal and consultancy firms, more than 2,000 accommodation businesses are believed to be operating without complete licences, while OTA listings greatly exceed officially registered accommodation providers.
2. Fair Competition
Licensed hotels, resorts and legal villa operators have long argued they compete against unlicensed rentals that avoid:
- accommodation licensing
- local taxes
- safety standards
- reporting obligations
Government officials have repeatedly stated the objective is to create a level playing field across Bali’s tourism sector.
3. Tourist Safety
Licensed accommodation must comply with Indonesian building regulations including:
- building approvals (PBG)
- Certificates of Feasibility (SLF)
- zoning compliance
- tourism accommodation standards
These requirements help ensure guest safety while improving accountability throughout Bali’s tourism industry.
What Happens to Unlicensed Airbnb Listings?
Under the government’s compliance programme, OTA platforms are expected to verify that accommodation providers hold the appropriate business licences.
Properties that cannot demonstrate compliance risk:
- Removal from Airbnb
- Removal from Booking.com
- Administrative sanctions
- Business licence revocation
- Additional enforcement action depending on the severity of non-compliance.
For many operators, losing OTA visibility effectively means losing the majority of their bookings.
Who Needs to Comply?
The regulations generally apply to:
- Private villas
- Holiday homes
- Guest houses
- Boutique accommodation
- Serviced villas
- Vacation rentals
- Property management businesses
- Commercial short-term accommodation providers
If your property is generating income through nightly bookings, it is likely considered an accommodation business under Indonesian law.
How to Register Your Property in Bali
Every property is unique, and the correct licensing pathway depends on ownership structure, zoning and intended use. Professional legal advice should be obtained before relying on general guidance.
For most operators, compliance involves the following steps.
Step 1 – Confirm Zoning
Your property must be located within zoning that permits tourism accommodation.
Operating accommodation in unsuitable zones can create significant legal issues regardless of other licences obtained.
Step 2 – Obtain an NIB
Every accommodation business requires a Nomor Induk Berusaha (NIB).
The NIB is Indonesia’s Business Identification Number issued through the Online Single Submission (OSS) system.
It forms the foundation of business licensing.
Step 3 – Register the Correct KBLI
Indonesia classifies businesses using KBLI (Klasifikasi Baku Lapangan Usaha Indonesia).
Choosing the correct KBLI code is critical.
Incorrect business classifications may prevent legal operation even where an NIB has been obtained.
Step 4 – Building Compliance
Most accommodation businesses must also hold:
- PBG (Building Approval)
- SLF (Certificate of Feasibility)
These documents demonstrate that the property satisfies Indonesian building regulations.
Step 5 – Tourism Licensing
Depending on the ownership structure and accommodation type, additional tourism business licences may be required.
Foreign investors generally cannot simply operate accommodation as private individuals and often require an appropriate Indonesian business structure to obtain the relevant licences.
Step 6 – Register for Tax
Operators must register for relevant taxation obligations, which may include:
- income tax
- local accommodation taxes
- business reporting obligations
Proper tax registration is a key component of remaining compliant.
Can Foreigners Register an Airbnb Property?
Foreign investors should be particularly careful.
Indonesian property ownership and tourism regulations differ significantly from many Western countries.
Depending on the ownership structure, foreign investors may need:
- a PT PMA company
- the appropriate tourism business classification
- the relevant operational licences
- ongoing tax compliance
Operating accommodation without the correct legal structure may expose investors to significant regulatory risk.
Why Compliance is Actually Good News
While the new rules create additional administrative work, they also improve the long-term health of Bali’s property market.
Benefits include:
- greater investor confidence
- improved professionalism
- reduced unfair competition
- stronger consumer trust
- higher accommodation standards
- more sustainable tourism growth
Many legal experts view the current changes as a natural evolution of Bali’s rapidly expanding tourism industry rather than a restriction on investment.
Need Help Registering Your Bali Property?
Navigating Indonesian property regulations can be complex, especially for overseas investors.
Working with experienced professionals can help ensure your property is structured correctly, licensed appropriately and positioned to continue operating legally as Bali’s regulatory environment evolves.
If you’re unsure whether your villa complies with current regulations, obtaining professional advice before enforcement action affects your listing may save considerable time, cost and lost rental income.
Frequently Asked Questions
Is Airbnb banned in Bali?
No. Airbnb remains legal. The government is targeting unlicensed accommodation businesses rather than banning booking platforms.
Will my Airbnb listing be removed?
If your property does not satisfy Indonesia’s accommodation licensing requirements, it may be removed from OTA platforms once compliance verification is enforced.
What is an NIB?
An NIB (Nomor Induk Berusaha) is Indonesia’s Business Identification Number issued through the OSS system and forms the basis of legal business registration.
Can foreigners legally operate Airbnb properties?
Yes, but generally only through compliant legal structures and with the appropriate licences. Foreign investors should obtain specialist legal advice before commencing operations.
Disclaimer: This article provides general information only and should not be relied upon as legal advice. Indonesian property, taxation and tourism regulations can change, and compliance requirements vary depending on ownership structure, zoning and the nature of the accommodation business. Property owners should seek advice from a qualified Indonesian legal or licensing professional before making operational decisions.