Bali to tighten checks on hotels’ use of local products

Denpasar — Bali Governor Wayan Koster said on Friday, 23 October 2026, that the provincial government will issue staged warnings to hotels and restaurants that fail to comply with Bali’s rules on using local products.

Why it matters: Hotels, restaurants and catering businesses across Bali could receive three staged warnings and face operating-permit review if they fail to meet local-product requirements.

Koster made the announcement at a Bank Indonesia Bali event in Denpasar, according to Metro TV and Koran Jakarta. The sanctions would begin with a first warning, followed by second and third warnings, before the government considers reviewing a business’s operating permit.

The policy is set out in Bali Gubernatorial Regulation No. 99 of 2018 on the marketing and use of local agricultural, fisheries and industrial products. Koster said the regulation had not yet been followed by all businesses in the hospitality sector.

Products covered by the policy include rice, eggs, fruit, vegetables, meat, beverages and salt. The regulation also requires hotels, restaurants and catering businesses to use local products for specified portions of their agricultural, livestock and fisheries needs, according to The Jakarta Post.

The Jakarta Post reported that the regulation sets a minimum local share of 30% for agricultural, livestock and fisheries products used by hotels, restaurants and catering services. It also sets a 10% minimum for local products used in meat processing.

Koster said Bali had sufficient local commodities to supply the tourism industry and argued that greater use of those products would create opportunities for farmers and small businesses. The provincial administration’s enforcement plan focuses on businesses that do not follow the existing regulation.

Sources

• NusaBali
• Metro TV News
• The Jakarta Post