Bali Shares Mixed Feelings About Proposed Tourist Casino

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Leaders in Bali have responded to proposed ideas for building a casino in North Bali.

The idea has caused quite a stir on the island since gambling in almost all forms is illegal in Indonesia, and there are no legal casinos operating anywhere in the country. 

The conversation hit the headlines last week, when the Chair of the BPC HIPMI, Putu Bayu Mandayana, shared his backing for the project, which could be developed in Buleleng Regency in North Bali.

Buleleng Regency is considered by many to be the poorest of Bali’s nine regencies, and it is certainly one of the least established in terms of tourism, just ahead of neighboring Jembrana Regency. 

The BPC HIPMI is the Islamic Students Association, and Mandayana’s comments have caused quite a response from tourism and political leaders in Bali.

At a media event held in Buleleng Regency last week, Mandayana said, “We should not look at the casino solely as a place for gambling, but from the perspective, we should see it as a tourist destination.”

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He added, “It will be the only strong, unique selling point here [in Buleleng]. And I think the people who will come in the future will be exclusive tourists with a more generous type.”

However, Mandayana’s desire to shake things up in Buleleng Regency, which would have a huge impact on Indonesia more broadly, has not been supported by those who he would need to get on his side in order for the brains behind the project to bring it to life. 

The Bali Province Tourism Office, led by Tjok Bagus Pemayun, has confirmed that “casino gambling in Bali is not yet possible,” least not because of the huge amounts of laws and policies that would need to be amended in order to legally affiliate such business operation. 

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Pemayun told reporters, “What is clear is that the basis of Bali’s tourism is culture. It is not a matter of rejecting casino gambling; this is cultural tourism.”

He rejected the idea that the casino could help plug a gap in government funding that could be used to support the development of more sustainable tourism initiatives and much-needed infrastructural upgrades.

One gap in government revenue is the Bali Tourism Tax Levy initiative; Pemayun confirmed that the policy is not generating as much income for the provincial government as expected due to many international tourists not paying their contribution despite it being a legal requirement. 

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Pemayun explained, “We will look at the problems and evaluate the shortcomings of this program. We will find solutions for all cases in the field.”

He was clear that any further tourism development that would be supported by the Bali Tourism Office would have to be established in strict alignment with cultural tourism values. 

Yet, there are young, up-and-coming leaders in Bali who feel that the debate about a tourist casino in Buleleng Regency should not be dismissed just yet.

The Chairman of the Indonesian Young Entrepreneurs Association of Bali Province, Agung Bagus Pratiksa Linggih, is clear that his proposal of an international-standard casino in Bali could help increase the region’s Regional Income (PAD), boost working opportunities for the area’s residents, and greatly benefit tourist experiences.

He feels that the revenue generated by a casino could help fund solutions to many of Bali’s most pressing issues, such as waste management, traffic, and infrastructure.

Linggih told reporters, “Indeed, now it is very much needed. Because PAD in Bali is around IDR 4 trillion, there are several Bali problems. One of them is that we need about IDR 3 trillion to manage 100% of the waste produced in Bali.”

He was clear that his idea for the development of a casino would be strictly for use by tourists, not for local people, much like the system in place in Cambodia and Sri Lanka or those in place in South Korea and Singapore, which implement additional barrier to entry for citizens and residents but make it seamless for tourists to use the facilities.