Community-based tourism is a concept where tourism is developed and managed by the community so that the benefits of tourism can be more optimal. However, in implementation, problems sometimes arise that make tourism not run as it should. This chapter aims to discuss examining the importance of community-based tourism initiatives in Indonesia, emphasizing how they affect local communities, socioeconomic growth, and sustainable tourism practices. The method applied in this study was the qualitative descriptive method in order to describe the relationship between the phenomenon or phenomenon under study in a systematic, factual, and accurate manner. Data collection was done by collecting and analyzing the data through the literature relating to issues to be investigated; such as the textbooks, scientific journals, and other legal sources. Descriptive interpretive methods were also used to analyze the data. The results of the analysis show that community-based tourism has provided great benefits for the development of sustainable tourism. Community-based tourism is an activity that facilitates resilience, if managed effectively, becomes an activity that can increase people’s incomes, strengthen communities, and increase market connections. Conversely, if it is not managed properly, it can create a development mirage, increase internal conflict and socio-economic differences, and build dependency on intermediary agents who control the entry of tourism.