A newly formed association of licensed villa rental companies in Bali is gearing up to tackle illegal villa operations, particularly those run by foreign owners. The Bali Villa Rental and Management Association (BVRMA) was officially launched by Bali Deputy Governor I Nyoman Giri Prasta.
BVRMA chairman Kadek Adnyana said on Thursday that around 70 companies managing 1.000 villas across the island have joined forces to protect the industry from unlicensed competitors, which they say are becoming increasingly common.
“We need to strengthen Bali’s position by ensuring that local people and culture remain the pillars of our tourism industry. We cannot allow unqualified and illegal foreign operators to run businesses here without proper permits,” he said.
Unlicensed Villas on the Rise
BVRMA was established in response to what its members say is a growing trend of illegal villa operations, particularly in Canggu, Uluwatu, and Ubud. The association was formalized through a legal decree on 28 August 2024.
The group says the issue has become evident as licensed brokers and operators observe discrepancies between tourist arrivals and occupancy rates at registered accommodations.
“These areas are densely populated. When we compare the number of visitors staying there with the official occupancy rates, the figures don’t add up. Through our surveys, we found hidden communities engaging in illegal villa rentals,” Adnyana said.
He added that some tourists may be staying in unauthorized villas, while others might be operating their own properties without detection.
Strengthening Enforcement
To protect the interests of legitimate businesses, BVRMA is committed to supporting local authorities in cracking down on unlicensed operations. The association has already gathered data on suspected illegal villas and intends to assist the government in drafting new regulations.
“A lot of people don’t understand the legal requirements for running a business in Bali. They assume all they need is an Online Single Submission (OSS) license, while locals have to go through additional licensing processes. On top of that, the government has set the foreign investment threshold too low—at just Rp1 billion—making it too easy for foreigners to open businesses here,” Adnyana said.
Deputy Governor Giri Prasta welcomed BVRMA’s support, emphasizing that the provincial government is preparing a regulation targeting the use of nominee agreements—loopholes that allow foreigners to acquire property under the names of local partners.
“I have made it clear that Bali urgently needs a regional regulation on nominee ownership. This will help us take action against illegal villas,” Giri said.
He also called on the association to help ensure that foreign investors follow local laws and customs.
“Foreign visitors must respect Bali’s traditions, culture, and established systems. We must be the ones setting the rules, not the other way around,” he added.
