Talks about banning Airbnb in Bali turned out to be just noise without real consequences. The platforms remain. What's changing is the way properties can be rented. Now the focus shifts to documentation, licenses, and taxes.
Looking at the numbers makes it clear why the topic was raised in the first place. There are approximately 378 hotels registered with the official hotel association in Bali, while Airbnb and similar services list around 16,000 properties, including villas, apartments, and guesthouses. Most of these operate without a complete set of permits and are effectively considered 'informal' rentals.
Until When Can You Continue 'As Before'
All properties listed on online platforms must comply with the regulations by March 31, 2026. Otherwise, the listings may be removed from Airbnb, Booking, and other sites.
For tourists, not much changes—bookings remain available. However, for property owners renting without proper documentation, it becomes increasingly challenging to operate under the old model.
Why Having an Airbnb Account Isn't Enough
It usually starts simply: a company is registered, an NIB (business number via the OSS system) is obtained, and an Airbnb account is created. But this is where legality ends.
Important restriction applies for foreign-capital companies (PT PMA): they cannot rent out residential properties on a daily basis. If a villa or apartment is registered as residential, renting it out via Airbnb under a PT PMA without a hotel license is not allowed.
Once a property is used for short-term accommodation, it is no longer 'just a home.' Accommodation requirements emerge: Sertifikat Standar, a permit for commercial use of the building (PBG), a safety certificate (SLF) may be needed, and sometimes registration at the desa adat level. Additionally, local tax PHR must be arranged.
KBLI — The Foundation of the Whole Scheme
KBLI is an activity code that shows what exactly the business is engaged in. Licenses, audits, and taxes depend on it.
PT PMA often uses codes 55900 and 68111, but it's crucial to understand: 68111 does not grant the right for short-term rentals by itself. It relates to property management, not guest accommodation, thus requiring additional legal settings.
Indonesian companies (PT PMDN) have more options—codes exist for villas and guesthouses. However, there is no universal solution: everything depends on the region, property, and business model. A single KBLI for Airbnb is a myth.
PHR Tax: 10% With No Automatic Deduction
Almost all short-term rentals in Bali are subject to PHR — Hotel & Restaurant Tax at a rate of 10%.
Important: Airbnb does not withhold this tax. The platform does not pay it for the owner. The business registers itself, obtains NPWPD, accounts for revenue, and pays PHR monthly. Airbnb's commission is unrelated to this tax.
What Is Practically Needed to Rent Without Risk
To operate smoothly in 2026, an account on the platform is not enough. Requirements include:
- choosing a KBLI matching the actual business model
- obtaining licenses and certificates
- if necessary, converting the property into a commercial category
- registering and paying PHR.
Without this, the risk of fines and removal of the property from platforms increases.
How Investors Usually Set Up Their Scheme
Several approaches are practically used.
1. In the first option, the property is converted to a commercial format, registered as an accommodation facility, and PHR is paid. Airbnb serves merely as a sales channel in this case.
2. In the second option, the property is rented by PT PMDN, which acts as the owner or official landlord and operates within local regulations.
3. The third option is a scheme with a management company. The owner remains PT PMDN or an individual, while PT PMA operates as the manager, handling marketing, listings, bookings, and guest services. Income is structured as management fees rather than rent, reducing legal risks.
How Legal Indonesia Can Help
Legal Indonesia helps design a clear and legal rental scheme through Airbnb: selecting the company format and KBLI, handling KITAS, obtaining licenses, and setting up PHR payment.
Analyzing the situation in advance can avoid fines and advertisement blocks when the new rules become fully effective.
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