The Indonesian House of Representatives – Commission VII has proposed a new provision in the Tourism Bill that would impose a tax for foreign visitors entering Indonesia for tourism purposes. The proposal, initiated by Commission VII Chairman Saleh Partaonan Daulay, aims to boost state revenue through the tourism sector.
According to Saleh, this issue is a key focus of DPR Commission VII in the discussion of the Tourism Bill, aiming to increase state revenue through the tourism sector. For instance, an individual tax may be imposed on foreign visitors.
“So, foreign visitors coming to Bali or other parts of Indonesia will be required to pay a tax. The exact amount and other details will be determined later.” Saleh stated at the Parliament Complex in Jakarta on Tuesday, as reported by antaranews.com.
He further emphasized that many foreign tourists travel on a budget and do not significantly contribute to Indonesia’s economy. By implementing a tourist tax, the country can generate additional revenue while ensuring sustainable tourism development.
Developing Rural Tourism and Strengthening Indonesia’s Global Tourism Appeal
The proposed Tourism Bill also aims to promote rural tourism, commonly referred to as Tourism Village (Desa Wisata). By supporting the growth of tourism in these areas, the initiative seeks to create direct economic benefits for local communities and strengthen regional economies.
Additionally, Saleh highlighted Indonesia needs need to accelerate our efforts to compete in other ASEAN countries, particularly Thailand, as well as in the global tourism sector.
He also emphasized the potential of tourism as a tool for cultural diplomacy, allowing Indonesia to showcase its rich heritage and national identity to the world. However, he acknowledged that this concept has yet to receive full support from the Ministry of Foreign Affairs, which holds exclusive authority over international diplomacy.
As for information, Commission VII of the DPR oversees industries, the creative economy, tourism, MSMEs, and public information infrastructure.
Travel Insurance for Foreign Visitors
Meanwhile, DPR Commission XIII has proposed a policy requiring foreign tourists to obtain travel insurance before entering Indonesia. This initiative aims to reduce the government’s financial burden in covering costs associated with the detention and deportation of foreigners with administrative violations.
“When foreign nationals are held in detention for one or two years, the state is responsible for their living expenses. This creates an unnecessary financial burden that could be mitigated through a mandatory travel insurance policy,” said Sugiat, a member of Commission XIII, during a working meeting with the Minister of Immigration and Correctional Affairs Agus Andrianto on Wednesday (February 19, 2025), as cited by integritasnews.com.
Sugiat proposed that the Ministry of Immigration enforce a policy requiring all foreign visitors to hold valid travel insurance, similar to regulations in other countries.
“If a foreigner is detained in an immigration facility, their food and deportation expenses should be covered by insurance. This would significantly reduce the financial strain on the government,” he added.
Commission XIII member Dewi Asmara supported the proposal, stating that Indonesia should implement policies aligned with international standards.
“As a nation, we should be welcoming to visitors, but we must also apply fair and equal regulations. When Indonesians travel abroad, they must comply with local regulations, including mandatory travel insurance. Indonesia should adopt a similar policy for foreign tourists,” she said.
She further explained that mandatory travel insurance could not only ease government expenses but also serve as an additional source of non-tax revenue.
Bali’s Foreign Tourist Levy Already in Effect
Responding to the DPR’s proposal, Bali’s Head of Tourism, Tjokorda Bagus Pemayun, noted that the province had already implemented a similar policy, known as the foreign tourist levy.
“Our legal basis for imposing this levy is outlined in Law No. 15 of 2023 on the Province of Bali. Article 8 of the law explicitly states that the Bali Provincial Government has the authority to collect fees from foreign visitors,” Pemayun said on Wednesday (February 26, 2025), as reported by tirto.id.
This law was further detailed in Regional Regulation No. 6 of 2023, which establishes a foreign tourist levy for the protection of Balinese culture and natural environment. The implementation mechanism is governed by Governor Regulation No. 2 of 2024. These regulations have been in effect since February 14, 2024.
Under this policy, all foreign tourists visiting Bali for leisure are required to pay a fee of USD 9,12. The collected funds are allocated for preserving local traditions, safeguarding the environment, and improving tourism services in Bali.
“Our primary focus remains on optimizing the collection and management of the existing foreign tourist levy in Bali. We continuously evaluate and refine its implementation based on past assessments,” Pemayun added.
Source: antaranews.com, integritasnews.com, tirto.id
Special Photo Credit: Ministry of Law & Human Rights
