APOA: new tenant registration rules in Bali from April 2025 — what this means for owners

From April 2025, Bali has tightened control over property rentals. The main change is mandatory registration of all tourists through the APOA app (Aplikasi Pelaporan Orang Asing). What is required: Every property rented to foreigners — hotel, guesthouse, villa, short-term rental apartment — must upload each guest’s passport to APOA at check-in. The information goes directly to immigration. This applies to both Airbnb and direct rentals. This is not a one-time inspection, but an ongoing operational burden. Raids are underway in Canggu, Bukit, and Ubud — checking for a Pondok Wisata license (for homeowners) or TDUP (for businesses), tax payments, and guest registration. Penalties: — Up to 25 million rupiah (~$1500) for registration violations. — Possible imprisonment for individuals who systematically violate the requirements. — Forced closure of the property, up to demolition (as in the Bingin-2025 case, where 45 illegal beachfront structures were demolished). What this means for investors: 1. Illegal villas are being pushed out of the market. Those who rented out "off the books" without a license, without NPWP, without registration — can no longer do so. Competition in the legal rental segment is decreasing. 2. Demand is rising for legal properties. Tourists, especially from countries with strict tax regimes, are increasingly asking for a fully compliant property. This is changing the pricing benchmark. 3. Annual returns of 8–15% for legal projects have growth potential due to reduced supply. 4. Licensing and tax requirements are now de facto mandatory. Without a management company, it is becoming difficult to handle this alone. What to do: — If you are buying a property, check whether the developer has a Pondok Wisata or TDUP license. If management through a management company is planned, check its license as well. — If you are already renting out, connect to APOA yourself or through a management company. At minimum, obtain an NPWP and pay tax on rental income. — If you are planning to buy in an individual’s name without a business structure "for friends off the books," reconsider the model. That era is over. The key principle of the new market: legal infrastructure is a competitive advantage, not just paperwork.