Bali introduces a "licensing barrier" for villa rentals. Nearly half of Airbnb listings risk being removed from the platform.

When Bali Governor Wayan Koster personally oversaw the demolition of 48 illegal structures on Bingin Beach in July 2025, it looked like a show of intent rather than systematic policy. A few months later, it became clear: this was exactly a system.

From March 31, 2026, all villas and guesthouses listed on international travel platforms — Airbnb, Booking.com, Agoda — must have a verified business registration number (NIB) in the state OSS system. Without this document, platforms have started removing listings. According to market operator estimates published in March, between 40 and 50 percent of all Bali listings on major platforms operate without the proper license. That’s tens of thousands of properties.

Authorities insist there is no ban on Airbnb. There is a requirement to operate legally. The official procedure involves obtaining several documents: NIB through the OSS system, a commercial building permit (PBG, replacing the outdated IMB), and an operational eligibility certificate (SLF), confirming the building meets safety standards. Foreign owners acting as individuals cannot obtain certain tourism licenses under Indonesian law — a legal structure requires registration of a PT PMA, a foreign investment company with a minimum investment threshold of around $600,000.

The regulator’s logic is clear. Bali received 6.3 million international tourists in 2024, and the number continues to grow. Meanwhile, tax revenues from the hotel sector grew more slowly than tourist flows — a significant portion of short-term rental income remained in the grey zone. Governor Koster publicly called this a “leakage of the regional budget.”

For investors planning to buy a villa on Bali for investment purposes, the situation creates a new checkpoint during due diligence. Having a full set of licenses — NIB, PBG, SLF, correct KBLI code — has become a key condition affecting real returns. A villa without an SLF is formally not entitled to generate short-term rental income. Its Airbnb listing exists only until the platform performs verification — after that, it disappears.

According to market analysts, properties with a complete set of documents sell on average 6–10% faster and have a lower discount during price negotiations.

Current properties in Indonesia — Bali, villas and apartments: discount-house.com/indonesia