BALI is witnessing a paradox: a steady increase in international tourists, yet many licensed hotels and villas remain unusually empty. The root of this issue appears to be a growing trend of foreign visitors opting to stay in unregistered kos-kosan (boarding houses), particularly in Jimbaran, Badung.
Local community leader and former head of the Tegal neighborhood in Jimbaran, I Wayan Artanadana, has voiced strong support for the Badung Regency Government’s plan to establish a multi-agency task force. This team would crack down on foreign nationals living in boarding houses without proper documentation or taxation. “I fully support this and urge immediate action,” he stated on Thursday, April 17, 2025. “This has been happening for years.”
According to Artanadana, waiting for formal legislation would take too long. “Don’t wait for a perda (regional regulation). That’s a long process. Just send a combined team from civil police, immigration, police, and relevant agencies,” he urged.
He noted that many foreign tourists in these illegal accommodations evade taxes that would otherwise contribute to regional income, especially Corporate Social Responsibility (CSR) funds allocated to traditional villages. “This harms the government and local communities. There’s no hotel tax being paid here,” he explained.
Property owners, too, are at risk. Hosting foreign guests means they’re responsible for reporting to immigration and police—especially if legal issues arise. “If anything happens, they’re the ones dragged into legal messes,” he warned.
Artanadana identified specific areas, including around Udayana University (Unud), where Russian nationals often stay long-term. “I’ve personally confronted foreigners in boarding houses—many act entitled and disrespectful when questioned,” he said.
He also revealed a trend of villas being disguised as kos-kosan to dodge taxes and avoid regulation. “Some are even working here on tourist visas,” he added, citing further legal concerns.
Artanadana’s warning reflects growing frustration from locals who believe this situation directly affects the hospitality sector. “Now that hotels are empty despite all the tourists, everyone’s shocked. This should’ve been addressed earlier,” he criticized.
He ended with a clear call for continued and consistent enforcement. “Don’t start strong and fizzle out. This needs long-term commitment,” he concluded.