Bottom line: The Indonesian government has identified around 1,600 unlicensed Airbnb/Villa properties, and the list was submitted to platforms like Airbnb on June 2. Owners have a 2-month grace period to obtain permits (NIB, KBLI, NKU). If they fail to legalize by August 1, their listings will be removed and unable to accept online bookings. Our advice: for now, steer clear of suspiciously cheap, unknown Airbnb listings and book licensed private villas or正规 hotels instead to avoid last-minute cancellations.
Bali’s villa scene has been a bit unsettled lately. I recently attended the Bali Villa Connect 2026 forum, where industry heavyweights gathered, and it became clear the government is serious—not only about establishing an official grading system but also about cracking down on unlicensed illegal rentals. For many villa owners, this is both a challenge and an opportunity to reset market order.
The Era Without a Grading System Is Ending
Have you ever wondered why five-star hotels have star ratings but high-end villas don’t? The result is that luxury villas and ordinary rentals are lumped together in a price war, making it impossible to tell which properties are truly premium.
The Bali Villa Rental & Management Association (BVRMA) has had enough and decided to introduce a one-to-five-star grading system, similar to hotels. It will evaluate building quality, service standards, facilities, infrastructure, and operational management. They’re currently working with several universities to develop the criteria, with finalization expected by year-end and official rollout in 2027. Honestly, this is great news for well-run villa owners—finally, they can be priced according to their true quality.
1,600 Unlicensed Rentals to Be Removed
The biggest bombshell from the forum: the government has identified around 1,600 unlicensed accommodations/villas and plans to delist them from online platforms and Airbnb this summer.
Currently, Bali has 12,000 officially registered accommodations, but many operators are running without completing legal procedures. To tackle this chaos, the government is collaborating directly with international booking platforms like Airbnb to cross-check license data and strengthen oversight.
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Kicked Off the Platform When Time’s Up
Starting June 2, the list of these non-compliant properties will be submitted to booking platforms like Airbnb. Owners will have two months to submit the missing documents—obtaining a NIB (Business Identification Number), KBLI (Business Activity Classification Code), and NKU (Business Activity Registration Number). If they haven’t sorted it out by August 1, they’ll be removed from online platforms like Airbnb and won’t be able to accept online bookings anymore.
Time to Change Your Booking Habits Now
I recommend temporarily avoiding booking Bali homestays on Airbnb until this policy is fully enforced. Why? The reason is simple:
The cheap listings you see right now could very well be among those 1,600 illegal properties on the blacklist. The worst-case scenario is that you book and get ready to go, only to receive a sudden cancellation notice a few weeks before departure. You’ve already paid, but your vacation is gone—nobody wants to deal with that.
Even worse, staying at an unlicensed homestay comes with its own risks. Without government oversight, there’s no one checking building safety, hygiene standards, or fire equipment—you never know if the place you’re staying in has issues.
For now, instead of gambling on Airbnb, opt for licensed hotels and villas. Spending a bit more gives you peace of mind and security.
Once the new tiered system rolls out in 2027 and Airbnb is fully integrated, all properties on the platform will be government-certified—then it’ll be safe to book again. A little patience over these two months is worth it for long-term travel quality.
