Rules & land · Badung

Bali: Koster asks booking platforms not to sell unlicensed villas

Bali Governor Wayan Koster on October 16, 2026 urged online booking platforms to stop listing villas and guesthouses that lack a business permit. He spoke in Jimbaran to hundreds of tourism players. This is an appeal, not a new regulation.

News of Published in DOMA News: 3 min read

Key points

  • Koster wants platforms to check for a permit first and only then allow a property to be sold.
  • He spoke at the 15th regional congress of ASITA Bali, the travel agents' association, in Jimbaran, Badung, on Friday, October 16.
  • The source names no sanctions or deadline for platforms, so for now this is a statement by the head of the region.

What the governor said

Bali Governor Wayan Koster addressed the platforms that sell travel and accommodation online. He asked them not to market villas, rental houses or guesthouses that have no business permit. In his words, an owner should get licensed first, and only then enter the online sales system.

He put it bluntly: if you want to sell, get the permit, and do not sell without one. He spoke at the 15th regional congress of ASITA Bali, an association of Indonesian travel agencies, held in Jimbaran in Badung regency. Hundreds of people from the island's tourism industry were in the room.

His reasoning

Koster's main argument was fair competition. When some properties operate with a permit and others without, the field tilts against those who follow the rules. Compliant owners, he said, should be able to count on their business being protected.

He also pointed to a longer-term risk. If unlicensed competition is left alone, operators who now comply may start ignoring the rules too, because they cannot withstand the price pressure. That would damage the whole tourism system.

More than paperwork

The governor stressed that tidying up the sector is not only an administrative matter. He tied it to the quality and sustainability of Bali tourism and said the industry should grow on healthy, high-quality and dignified business practice.

He also reminded the room about digital promotion. A campaign that brings in visitors, he said, will not deliver lasting benefits if the businesses behind it are badly governed. He asked both property managers and online sales services to look beyond profit and respect the rules and the local community.

What the report does not say

The report gives no deadline, no list of penalties and no mechanism by which platforms would verify permits. It also does not say how many properties operate without one. For now this is a political signal rather than a change in the law.

For context, tourist accommodation in Indonesia is licensed through the national OSS system (the single online licensing window), and the building itself needs construction and occupancy approvals. Those requirements already exist. Koster's appeal tries to link them to the sales channels.

What it means for the market

For villa owners the message is clear. Sales platforms may begin to ask for proof of a permit if the governor gains backing from national authorities or the industry. That remains an expectation, and the source does not confirm it.

For buyers of ready villas intended for rental, it is one more reason to check a property's status before the deal, not after the first bookings.

What happens next

Watch whether Bali authorities turn the appeal into a decree or an agreement with platforms, and what deadlines and checks they name. The source mentions no such steps yet.

What it means for investors

If you buy or already own a villa for short-term rental, check three things: whether the property holds a valid business permit, whether the building matches its construction and occupancy approvals, and in whose name the permit is issued. A property without these papers could lose access to booking channels if the appeal becomes a rule. We check these documents before a deal because they decide whether you can rent the villa at all.

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Q&A

Is this already a law?

No. The source describes an appeal by the governor at the ASITA Bali congress, with no deadline or penalties.

What should a villa owner check?

Whether the property holds a valid business permit and whether the building matches its approvals.

Source
Antara Bali, published October 16, 2026, language: Indonesian

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

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