DENPASAR, Bali — In a significant move to regulate the island’s lucrative digital tourism economy, Bali Governor Wayan Koster has announced plans to formally summon major Online Travel Agents (OTAs), including global giant Airbnb, for failing to pay taxes to the local government.
Governor Koster stated he has received explicit backing from National Tourism Minister Widiyanti Putri Wardhana to address the issue. The Ministry has directed the provincial government to convene a meeting with the platforms to ensure they comply with existing Indonesian regulations.
“We have been given direction by the Minister of Tourism, and the provincial government will invite these actors together with the Ministry of Tourism for an integrated approach,” Koster said at a briefing in Denpasar on Sunday, January 4.
The Governor framed the issue as one of fairness and shared benefit, acknowledging the platforms’ role in driving tourist traffic while stressing Bali’s right to a share of the revenue. “So that we both benefit. Right now, it’s only they who get the benefit, we don’t. This is what we need to organize; it must be done step-by-step, of course, as it can’t be immediate. Actually, they all have a role, as long as good corridors are created,” he explained.
The push for regulation follows a formal request from Indonesia’s Investment Minister, who earlier asked Governor Koster to draft a specific Regional Regulation (Peraturan Gubernur) concerning Airbnb’s operations. This aligns with a national crackdown on unlicensed accommodations. Minister Widiyanti has previously warned that unlicensed homestays and villas would be removed from OTA listings starting this year.
Parallel to this regulatory tightening, the provincial government continues its long-term strategy to disperse tourism beyond the saturated southern hubs of Denpasar, Badung, Gianyar, and Tabanan (known as Sarbagita). Koster pointed to areas like Buleleng in the north, where tourist numbers and the resulting Hotel and Restaurant Tax (Pajak Hotel dan Restoran) are rising, as examples of successful dispersal driven by “special interest” travelers.
However, he emphasized that this broader geographic distribution is contingent on improved infrastructure. “We can only push for that if the connectivity is already good, the infrastructure from south Bali to north, from west Bali to east Bali is good, then it can happen,” Koster noted, outlining that major infrastructure projects slated for 2026 will begin to show their impact by 2027, enhancing mobility across the island.
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