Is Airbnb legal in Bali?

Airbnb regulations in Bali are specifically designed to ensure that property rentals comply with local laws and zoning requirements, particularly due to the island's popularity with tourists and expatriates. To start an Airbnb business in Bali, you need to establish a PT PMA (Foreign-Owned Company), which requires obtaining a Business Identification Number (NIB) and a Company Registration Certificate (SKDP).

Attention must also be paid to zoning permits, which dictate where short-term rentals can legally operate. Properties in the Tourism Zone (Pink Zone) are most suitable for Airbnbs, while areas in the Green Zone prohibit such commercial activities. Properties in Residential (Yellow Zone) and Mixed-Use (Orange Zone) zones may have different regulations that could limit short-term rentals, and Commercial Zones (Red Zone) are generally not suitable for Airbnbs.

Key licenses and permits include the Pondok Wisata License for renting properties to tourists and building permits like the PBG (Building Approval Permit) and the SLF (Certificate of Proper Function) to certify building safety and usability. Depending on your business activities, additional licenses such as a trade business license (SIUP) or even specific licenses like the Tourism Business License (TDUP) may be required, particularly if offering food and beverage services or guided tours.

Lastly, compliance with consumer protection laws is essential, requiring businesses to provide accurate information and quality services. If hiring employees, adherence to employment regulations, including enrollment in Indonesia’s social security programs, is mandatory. Overall, potential Airbnb operators in Bali should consult with legal experts or business consultants familiar with local regulations to ensure full compliance.