Governor Koster Urges Airbnb to Remove Unlicensed and Non-Tax Compliant Tourism Businesses in Bali

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Encourages Partnership with Love Bali Platform

DENPASAR — Bali Governor Wayan Koster has called on Airbnb, the global digital marketplace connecting villa accommodations and tourism services to travelers in Bali, to comply with Bali Provincial Government regulations in order to realize a high-quality, dignified, and culture-based tourism governance system.

The statement was delivered during a meeting with Airbnb’s Southeast Asia representatives based in Singapore — Shanta Arul, Public Policy Lead for Southeast Asia; Ishwinder Kaur, Public Policy Manager; and Matius Roland, Senior Associate — on Wednesday (February 11, 2026) at Jayasabha, the Governor’s official residence.

Governor Koster stressed that Airbnb must ensure that all villas and tourism services promoted on its platform in Bali meet legal licensing requirements and fulfill their tax obligations.

“If they are not compliant, I expect Airbnb to remove those villa operators and tourism service providers from its digital platform listings,” Governor Koster firmly stated.

He also encouraged Airbnb to collaborate with the Bali Provincial Government’s digital platform, Love Bali, particularly in facilitating the payment of the Foreign Tourist Levy and other regulatory mechanisms, so that both parties can contribute mutual benefits to Bali.

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Governor Koster emphasized that under his leadership, Bali remains open to anyone wishing to invest and conduct business on the island. However, all businesses must adhere to government regulations and share responsibility in maintaining the quality of Bali’s tourism.

“It is unfair if the responsibility for maintaining tourism quality rests solely on the provincial, regency, and municipal governments, as well as the Balinese people, while those who profit from tourism contribute nothing to Bali. If Bali does not receive justice, nature will find its own way to restore balance,” he asserted, accompanied by the Head of the Bali Tourism Office and the Head of the Bali Communications and Information Office.

He reiterated that before being promoted on Airbnb, all villa operators and tourism service providers in Bali must possess valid business licenses and comply with tax regulations. He further referred to the Indonesian Ministry of Tourism’s directive requiring all tourism service providers to be fully licensed and tax compliant by the end of March.

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“For those who fail to comply, I expect Airbnb to take action and remove them from its promotional listings. As for non-compliant operators, the Bali Provincial Government will initiate legal proceedings,” Koster explained.

According to the Governor, enforcing discipline in Bali’s tourism sector is essential to protect the island from degradation. If Bali suffers environmental or cultural damage, its tourism image will deteriorate — ultimately affecting visitor arrivals.

“We are working hard to organize Bali’s tourism sector to ensure sustainability. All stakeholders must support the regulatory framework established by the Provincial Government before irreversible damage occurs,” he said.

In closing, Governor Koster reaffirmed his commitment to taking firm action to safeguard the sustainability of Bali’s tourism industry. He pointed out that the rapid growth of unlicensed villas and residential properties operating as tourist accommodations without paying taxes has resulted in financial losses for Bali, while the government continues to invest substantial resources in preserving the environment and culture.

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“Remember, without Balinese culture, there would be no tourism in Bali. And without a thriving tourism sector, no business can survive here,” he concluded.

Airbnb Commits to Complying with Government Regulations

Responding to the Governor’s directives, Shanta Arul, Public Policy Lead for Southeast Asia at Airbnb, expressed the company’s commitment to complying with all applicable regulations in Bali and encouraging tourism service providers to fulfill their tax obligations.

Airbnb also pledged to disseminate Bali Provincial Government regulations to its partners and ensure that its hosts are informed about the applicable legal requirements.

“Airbnb takes licensing matters very seriously, and we are ready to collaborate with the government,” she stated.***

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