The island has also reinstated its visa on arrival policy for visitors from 23 countries.
However, fully vaccinated travellers will still need to take a PCR test on arrival and wait in their hotel room for the result. Another PCR test must be taken on the third day.
All arrivals must have proof of a hotel booking for four days and show vaccination credentials.
Several sources, including The Bali Sun, have confirmed the change of policy, with the island acting as a pilot scheme for the rest of Indonesia.
The publication quotes Bali governor I Wayan Koster confirming the zero quarantine policy is implemented.
Until now, tourists have had to remain in their hotel until a day three PCR test was conducted.
Changes to the rules will come in time for the island’s peak season, which coincides with the UK summer.