Indonesia Kicks Off New Airbnb Rules: How It Will Affect Your Bali Trip

As Indonesia works to reshape its rapidly growing tourism landscape, the country is now tightening rules for Airbnb‑style rentals to ensure higher standards, stronger legal compliance and safer stays for visitors. In an Instagram post shared on February 27, Tourism Minister Widiyanti Putri Wardhana stressed that “quality tourism” depends not just on large visitor numbers but on good governance and responsible accommodation practices. Her message sets the tone for Indonesia's latest regulatory push, one that will directly influence how travellers book villas, homestays and short‑term rentals across the country.

Also Read: Israel-Iran Conflict: What Airlines Are Offering If Your Flight Is Cancelled

Indonesia Teams Up With Major OTAs

Photo: Unsplash

In her announcement, the Minister revealed that the Ministry of Tourism is working closely with 10 major national and international online travel agencies (OTAs) operating in Indonesia. These include:

• Traveloka
• Tiket.com
• Airbnb
• Trip.com
• BVRMA
• Booking.com
• Agoda
• RedDoorz
• Expedia

This collaboration aims to ensure that all accommodation listings, whether traditional hotels or independently run villas, are fully compliant with licensing requirements before being offered to travellers.

What The New Regulations Require

According to the Minister's post, Indonesia's updated accommodation oversight is based on key government regulations that OTAs and property owners must follow.

1. Government Regulation No. 80 of 2019 (Trading Through Electronic Systems)

Under this rule, OTAs are prohibited from accepting domestic or international accommodation providers who fail to meet the legal terms and conditions set by Indonesian law. This includes proper documentation, registration and valid business permits. Listings that don't meet these standards risk being removed from platforms.

2. Government Regulation No. 28 of 2025 (Risk‑Based Business Licensing)

All accommodation operators are now required to hold a Business Licence (PB).
Failure to comply may result in administrative sanctions, including temporary suspension of the accommodation business. This regulation directly affects villas, guesthouses, homestays and short‑term rentals that previously operated without formal licensing.

What This Means For Travellers Booking Airbnb‑Style Stays

Photo: Unsplash

Indonesia's updated guidelines are designed to create a safer, more transparent accommodation ecosystem. For travellers, here's what to expect:

1. More verified and legally compliant listings

OTAs will be required to display only properties that meet licensing rules, providing clearer assurance to travellers.

2. Possible removal of unlicensed villas and homestays

Some popular vacation rentals may temporarily disappear until their owners secure the required permits.

3. Improved safety, service and accountability

With operators required to meet higher standards, travellers can expect more regulated, reliable stays.

4. Fewer last‑minute cancellations

Because only legally compliant listings can operate, unexpected shutdowns or forced cancellations may decrease.

5. Changes in pricing and availability

Some hosts may adjust rates after moving into formal compliance, though this will vary depending on region and property type.

Also Read: Kuwait Makes Declaring Cash Mandatory For Travellers: How It Affects You

Why Indonesia Is Tightening These Rules

Photo: Unsplash

The new regulations follow growing concerns around:

• Lost regional tax revenue, especially in Bali
• Illegal rentals operated without oversight
• Unequal competition between hotels and unlicensed properties
• The need for improved traveller safety and host accountability

The Minister's message underscores the government's broader goal: a tourism system that supports local economies while maintaining high standards for travellers.

How It Will Affect Your Bali Trip

Bali, Indonesia's most popular island for villa and homestay rentals, is expected to feel the new Airbnb rules most strongly, as many properties have been operating without full permits. Travellers may see some villas temporarily disappear from booking platforms while owners update their licences. The government says the changes will lead to safer, more reliable and legally compliant stays across Bali, ultimately improving the overall visitor experience.

What Travellers Should Do Before Booking

• Check whether an Airbnb or villa listing mentions licensing or verification
• Book through reputable OTAs that comply with the new rules
• Expect platforms to display clearer compliance indicators by the 31 March deadline
• Reconfirm bookings made months in advance, especially for Bali and major tourist areas

As Indonesia continues refining its tourism framework, visitors can expect a more dependable and well‑governed travel experience across the archipelago.