Bali Under Scrutiny: Indonesian Ombudsman Investigates Tourism Tax Concerns
Concerns about the effectiveness of Bali’s tourism tax levy are mounting, prompting a formal examination by the Indonesian Ombudsman. Introduced on February 14th, 2024, the levy has faced criticism for failing to deliver on its promised benefits.
On january 27th, the Indonesian Ombudsman hosted an informal press conference, dubbed a “coffee morning,” titled “Bali Cultural Tourism Service Governance for Foreign Tourists in Bali province.” During the event, Hery Susanto, a representative of the Ombudsman, announced the investigation, emphasizing the need to identify and address inefficiencies in the system. “The investigation will focus on highlighting the potential of Bali’s tourism sector while working to create strategies to mitigate existing policies and regulations that are not delivering positive results,” he stated.
The Ombudsman’s probe comes in response to growing public pressure and questions surrounding the implementation and impact of the levy.Critics argue that the tax has not translated into tangible improvements in tourism infrastructure or services, leading to a climate of dissatisfaction among both locals and visitors.
This investigation represents a crucial step towards ensuring that Bali’s tourism industry thrives sustainably and benefits both visitors and residents. The Ombudsman’s findings and recommendations will undoubtedly shape the future of tourism policies in Bali and serve as a model for othre destinations grappling with similar challenges.
Concerns are mounting over the effectiveness of Bali’s Tourism Tax Levy, with recent figures revealing a considerably low compliance rate.Only 35% of international tourists are paying the mandatory IDR 150,000 fee, a stark contrast to initial estimates that placed it closer to 40%.
Ni Nyoman Sri Widhiyanti Sri, Head of the Indonesian Ombudsman, Bali Representative, expressed her disappointment during a recent press conference, stating, “In terms of its benefits, it can actually be useful. How to improve the quality of tourism service.” She acknowledged, “It’s just that the last year has been running. But we see this lease has not been effective. 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.”
Widhiyanti emphasized the need for increased compliance and obvious spending of the collected funds. She stressed that the funds, as stipulated by the Regional Regulation (Perda) Number 6 of 2023, should be dedicated to cultural preservation and environmental management. To ensure accountability, she has called for the Cultural Service to directly distribute the levy proceeds to Bali’s customary villages.
Indonesia’s bustling island paradise, Bali, is witnessing a shift in its tourism landscape.
Bali’s tourism industry, a vital driver of its economy, is embracing a new era with the implementation of a tourism tax. This tax aims to regulate tourism, generate revenue for local progress, and ensure the long-term sustainability of Bali’s enchanting attractions.
Calls for improvements to the infrastructure supporting the Bali Tourism Tax Levy have emerged.
Likening the system to a delicate flower, Bali’s tourism stakeholders are advocating for a smoother experience for tourists, aiming to make it as easy as possible for them to fulfill their payment obligations.”advancement of the payment system, including how to sanction foreigners who do not pay,” emphasizes Widhiyanti, highlighting the need for a robust and transparent system that encourages compliance.
This focus on user experience resonates deeply with the image of Bali – a place where welcoming smiles and effortlessly graceful experiences are paramount.
Since its implementation in February 2024, Bali’s tourism tax has raked in a ample IDR 300 billion, approximately USD 185,000. However, the Bali provincial Government has yet to unveil a detailed plan outlining how these funds will be allocated and utilized.
Dewa made Indra, the Regional Secretary of the Bali Provincial Government, shed light on the government’s priorities for spending the tourism tax revenue in 2025. He stated, “This collection for foreign tourists is used for cultural preservation and handling garbage problems.”
