The pause is part of the government's bid to reform tourism on Bali, one of Indonesia's main attractions, to try to boost quality and jobs while preserving the island's indigenous culture.
Hermin Esti, a senior official at the Co-ordinating Ministry of Maritime and Investment Affairs, told Reuters on Monday the government had agreed to set the moratorium, although the exact timeline was still being discussed.
On Saturday, Bali's interim governor Sang Made Mahendra Jaya said he suggested the moratorium in four of Bali's busy areas to the central government, taking aim at over-development for commercial purposes, such as hotels, villas, and beach clubs.
The governor's office and Indonesia's tourism ministry did not immediately respond to requests for comment on Monday.
The moratorium could stretch up to 10 years, senior minister Luhut Pandjaitan was quoted by news website Detik as saying on Sunday.
Luhut has previously said about 200,000 foreigners lived in Bali, contributing to problems such as crime, overdevelopment and competition for jobs.
Foreign arrivals in Bali have surged since it reopened for tourism after the COVID-19 pandemic.
Videos of misbehaving tourists often go viral, angering residents and sparking harsh responses from social media users in Indonesia.
Government figures show 2.9 million foreign visitors arrived through Bali airport in the first half of the year, making up 65 per cent of total foreign arrivals in Indonesia by air.
There were 541 hotels in Bali in 2023, the figures show, up from 507 in 2019.
