Bali to Restrict Online Transportation Services to Local Drivers and Locally Registered Vehicles
In a significant move aimed at supporting local employment and regulating online transportation services, Bali’s Regional Representative Council (DPRD) and the Provincial Administration have agreed to introduce new legislation restricting online taxi operations to Balinese drivers using vehicles registered in Bali.
The decision, finalized during a plenary session held on October 28, 2025, at the Governor’s office in Denpasar, mandates that drivers operating online transport apps must possess a Bali Identity Card (KTP) and that the vehicles used carry the distinctive "DK" license plates that signify registration within Bali. This draft regulation on online tourism transportation, known as ASKP, is now set to be submitted to Indonesia’s Ministry of Home Affairs for review and final approval.
Legal Certainty and Local Employment
I Nyoman Suyasa, chairman of Commission III of the DPRD-Bali, emphasized the importance of the new regulation in providing legal certainty to the rapidly growing online transportation sector on the island. “This law will bring order to the operations of these transportation vendors, establish reasonable and fair pricing, and importantly, prioritize employment for locals who hold Balinese identification and use locally registered vehicles,” he explained.
Ensuring Quality Tourist Services
Beyond regulatory enforcement, the new law aims to enhance service quality. Suyasa highlighted plans to improve driver competency through standardization efforts that require tourism drivers to possess knowledge of Balinese cultural tourism. Furthermore, vehicles utilized for tourist transportation must display the official "Kreta Bali Semita" label, a mark intended to signify authorized and culturally-informed transport services for visitors.
Support from Provincial Authorities
Bali Deputy Governor I Nyoman Giri Prasta stressed that once ratified by the Ministry of Home Affairs, all drivers and online transportation companies operating on the island will have to comply with the regulation. He pointed out that this policy would open broader job opportunities for Bali’s residents, helping to ensure that economic benefits of the tourism sector remain within the local community.
In addition, the provincial government plans to develop a unified official online application platform. This system would allow for the systematic registration and supervision of all online taxi drivers and vendors, improving transparency and regulatory oversight.
Community Response and Context
The proposed regulation comes in response to ongoing concerns voiced by local drivers and community groups. Early in 2025, the Bali Tourism Driver Struggle Forum held peaceful demonstrations calling for restrictions on the number of online taxis, a requirement for drivers to hold Bali KTPs, and the exclusive use of Bali-registered vehicles. The new law is seen as a positive step addressing those demands by balancing the interests of local drivers and the island’s tourism industry.
Questions and Future Outlook
While supporters commend the emphasis on local empowerment, some observers question the practical ability of Bali’s authorities to enforce restrictions on large online transportation companies that currently dominate the market. The effectiveness of the new regulation will depend on the cooperation of app operators and thorough implementation.
If successfully enacted, Bali’s new approach to online transportation could serve as a model for other regions seeking to promote local involvement while managing the challenges of digital-era transport services.
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