The Indonesian Ombudsman has launched an investigation following allegations of poor management in the country’s tourism sector, particularly in Bali. Concerns are growing that the tourism tax, introduced a year ago, has not delivered the expected results.
Ombudsman representative Heri Susanto stated that the investigation will focus on assessing Bali’s tourism sector and developing plans to improve existing regulations that have failed to yield positive outcomes. Susanto also acknowledged that bribery is rampant in Bali’s tourism industry, calling it a disgrace.
Ni Nyoman Sri Widiyanti, head of the Indonesian Ombudsman’s Bali office, criticized the implementation of the tourism tax over the past year. She noted that the tax has the potential to be beneficial, particularly in enhancing the quality of tourist services.
It was revealed that only 35% of international tourists actually pay the levy. Widiyanti emphasized the need not only to increase compliance but also to ensure that the collected funds are used transparently and efficiently. She stressed that the revenue should go toward cultural preservation and environmental protection, as outlined in Regional Regulation No. 6 of 2023 regarding the foreign tourist tax. Additionally, she highlighted the importance of fairly distributing the funds among Balis traditional villages.
The Ombudsman called for improvements in the infrastructure related to the tourism tax, suggesting that the payment process should be simplified for tourists and that penalties should be introduced for those attempting to evade payment.
Since its introduction in February 2024, the tourism tax has generated IDR 318 billion. However, the Bali provincial government has yet to disclose how or where these funds will be allocated.
Despite criticism over ineffective tax collection, the revenue has already exceeded the 2024 budget target of IDR 250 billion. However, if all foreign tourists (6.3 million visitors in 2023) had paid the mandatory IDR 150,000 tax, the total potential revenue would have been IDR 945 billions 297% higher than the actual tax income.
Balis Regional Secretary, Dewa Made Indra, outlined the priorities for tax revenue allocation in 2025. These funds from foreign tourists are intended for cultural preservation and addressing waste management issues, he said.
As a reminder, the tourism tax is a mandatory IDR 150,000 fee for all international tourists visiting Bali, including children. Payment can be made online via lovebali.baliprov.go.id or through the Love Bali app, either before arriving in Bali or upon arrival at I Gusti Ngurah Rai International Airport.
Sources: nusabali.com
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