Indonesia To Investigate Mismanagement Of Bali Tourism Tax System

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The Indonesian Ombudsman has committed to examining allegations that tourism is being mismanaged in the country, with a special focus on Bali and, even more specifically, the Bali Tourism Tax Levy, which was introduced on the 14th of February 2024.

There are increasing concerns that the policy has not delivered the changes it promised.

On Monday, 27th January, the Indonesian Ombudsman held an informal press conference event, described as a coffee morning titled “Bali Cultural Tourism Service Governance for Foreign Tourists in Bali Province.”

Speaking to reporters during the event, a representative of the Indonesian Ombudsman, Hery Susanto, explained that the investigation will highlight the potential that the Bali tourism sector is sitting on while working to create strategies to mitigate existing policies and regulations that are not delivering positive results.

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Susanto shared, “We have a lot of tourism potential, but many have not been developed. This is very unfortunate. Meanwhile, we know that the problem exists, many problems occur in that sector.”

He added,d “There is one neglect due to limited infrastructure, and transportation routes, for example.”

Susanto acknowledged, “Extortion is rampant there. This is a shame.” He was clear: “We actually want to know what regulatory problems are occurring in this sector.” 

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The Head of the Indonesian Ombudsman, Bali Representative Ni Nyoman Sri Widhiyanti Sri, spoke to the media about the less-than-optimal way in which the Bali Tourism Tax Levy has been implemented over the last year. She explained, “In terms of its benefits, it can actually be useful. How to improve the quality of tourism service.”

She added, “It’s just that the last year has been running. But we see this lease has not been effective.” Noting “The point is, this is a great potential. If it is done well in terms of its benefits, it can be very helpful in how the service is.”

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It is now clear that as few as 35% of all international tourists have been paying their Bali Tourism Tax Levy. Initial figures suggested that only 40% of arrivals were paying their dues, but the latest figures show that even fewer tourists were making the mandatory IDR 150,000 contribution than first thought. 

Widhiyanti was clear that she not only wants to see more tourists paying the fee but that funds already generated by the policy must be spent wisely and transparently.

She emphasized that the funds must be used for cultural preservation and environmental management as stipulated by the Regional Regulation (Perda) Number 6 of 2023 regarding the Pay for Foreign Tourists. She has asked that the Cultural Service go directly to Bali’s traditional villages to distribute the proceeds of the foreign tourists tax levy.

She also called for improvements to be made to the infrastructure surrporting the Bali Tourism Tax Levy, to help make ti easier for tourists to make payment, and implement sanctions for those caught dodging the fee. Widhiyanti concluded, “Improvement of the payment system, including how to sanction foreigners who do not pay.”

Since it was introduced in February 2024, the Bali Tourism Tax Levy has generated IDR 300 billion, around USD 185,000, but so far, the Bali Provincial Government has not released details about how or where these funds will be spent. 

The Regional Secretary of the Bali Provincial Government, Dewa Made Indra, outlined the government’s priorities when it comes to spending Tourism Tax Levy funds in 2025. He shared, “This collection for foreign tourists is used for cultural preservation and handling garbage problems.”

He confirmed, “This is our top priority in 2025. This is also our commitment in preserving Bali in the future.”

The Bali Tourism Tax Levy is a mandatory IDR 150,000 payment for all international tourists visiting Bali, including children. The fee can be paid online or via the Love Bali app prior to arriving in the province, or on arrival at I Gusti Ngurah Rai International Airport.