Indonesia closes door on Airbnb ban after Bali governor seeks to curb unlicensed rentals
Bali’s governor wants to ban the online platform but the island’s problems with illegal rentals go beyond Airbnb, critics say
The split underscores the growing tension between Bali’s push to rein in illegal accommodations and Jakarta’s preference for regulation over platform bans. Analysts also say that a ban on Airbnb alone would not fix deeper problems such as unregistered guest houses, weak enforcement and foreigners subletting properties.
“The government is currently undertaking the structuring of illegal tourism accommodations. This measure is not a restriction on [online] platforms. The policy is part of the government’s broader effort to enhance service quality, ensure visitor safety and promote fair business competition,” the ministry said in a statement shared with This Week in Asia on Tuesday.
Koster had announced plans last week to pursue a ban on Airbnb, arguing it was necessary because unlicensed accommodations were undermining Bali’s economy. He said the more than 2,000 unlicensed hotels in Bali contributed nothing to local revenue.