PHRI Bali Urges Easier Licensing for Villas Already Built in Green Zones

The Indonesian Hotel and Restaurant Association (PHRI) Bali is requesting that the local government ease the licensing process for villas that have already been constructed in green zones. This request comes in response to the high number of villas in Bali being listed for sale on digital platforms.

“The solution, in my opinion and estimation, is that they wish to regularise their permits. However, the government must be open to facilitating the licensing process for those already situated in green zones that are caught between existing villa developments,” said the Vice Chairman of PHRI Bali, I Gusti Agung Ngurah Rai Suryawijaya, on Wednesday (30/09/2026).

Nevertheless, Rai provided a caveat. Property owners must modify their designs and Detailed Spatial Plans (RDTR) and obtain Regional Taxpayer Identification Numbers (NPWPD) to be permitted for marketing on digital platforms. For Rai, this would also increase government revenue through Hotel and Restaurant Taxes (PHR).

According to information obtained by Rai, many villas in Bali are being sold due to incomplete licensing resulting from their construction in green zones. These buildings are unable to operate once completed due to strict government regulations.

“Anyone listed on Airbnb or other Online Travel Agencies (OTAs) must follow the rules set by the government; permits and NPWPD must be complete. Therefore, they are finding it difficult to manage their licences,” Rai explained.

Rai also suggested that the government conduct research on Bali’s future carrying capacity. This would allow current issues to be resolved and facilitate an evaluation regarding the existing moratorium.

“That is what is suggested. If the development of tourism accommodation—including hotels, villas, condotels, guest houses, and apartments—continues in this manner, it will have a negative impact on future tourism development and trigger a price war,” Rai clarified.

Rai expressed concern that a price war in Bali’s accommodation sector would disadvantage all parties. Business turnover would decline, employees would face threats to their service incentives, and government tax revenue would plummet.

Rai hopes that competition within Bali’s accommodation business can become healthier and more conducive. “That is what must be done, especially as the Bali Provincial Government plans to develop tourism that is culture-based, high-quality, and dignified,” he concluded.