Indonesia has confirmed it will not ban holiday rental platform Airbnb after Bali said it was considering doing so to curb unlicensed hotels and villas that have mushroomed on the island.
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.
Indonesia’s Ministry of Tourism sought to clarify the issue after Bali Governor I Wayan Koster publicly declared he would seek to ban the rental platform, stressing that the government “has never banned and does not intend to halt” the operations of online travel agencies, including the platform.
“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.