Bali Government Assures Prudent Management of Foreign Tourist Tax Revenues

Bali, Indonesia — February 2, 2025
Bali’s Provincial Secretary, Dewa Made Indra, recently reassured stakeholders about the management and allocations of revenues generated from the Foreign Tourist Tax (PWA), which was introduced on February 14, 2024. This announcement came during a meeting with the Bali Ombudsman aimed at enhancing the province’s accountability and transparency in handling tourism-related levies.

Transparency in Revenue Usage

According to Dewa Made Indra, the PWA has successfully generated over IDR 318 billion (approximately USD 21 million) by the end of December 2024, surpassing the initial target of IDR 250 billion. He emphasized that all funds collected from this tax are deposited into the regional treasury and allocated strictly according to established legal frameworks outlined in Bali Provincial Regulation (Perda) Number 6 of 2023. "The revenues from the Foreign Tourist Tax are allocated for vital areas including the protection of our culture, preservation of the natural environment, and waste management initiatives across Bali," stated Indra.

Allocations for Cultural and Environmental Initiatives

The funds raised through the PWA are designed to support various cultural projects, enabling the provincial government to provide financial assistance to traditional villages, temples, and artists. This initiative aims to ensure that religious ceremonies can be performed in accordance with traditional practices.

In terms of environmental management, Dewa Indra mentioned that the tax revenue is also directed towards enhancing waste management systems, including financial assistance for districts to promote waste reduction, recycling efforts, and the establishment of waste processing facilities (TPS3R) throughout Bali.

Challenges in Tax Collection

While the PWA is intended to bolster Bali’s tourism infrastructure and support local culture, Dewa Made Indra acknowledged that collection remains a significant challenge. He noted that more than half of foreign tourists visiting Bali currently do not pay the IDR 150,000 PWA fee.

"In 2025, we aspire for an increase in revenue alongside improvements initiated in various sectors," he expressed.

Ombudsman’s Role and Recommendations

Ni Nyoman Sri Widhiyanti, head of the Ombudsman RI Representative Office for Bali, remarked that the meeting served as an assessment of local governance regarding the collection and utilization of the tourism tax. She highlighted the need for improved public service delivery in order to enhance local tax revenues and elevate the quality of cultural tourism services for international visitors.

Sri Widhiyanti raised several concerns regarding the current foreign tourist levy system, including issues related to application constraints, insufficient socialization efforts, and unclear guidelines on how tax revenues are utilized.

"Governance improvements are essential for increasing Bali’s Provincial Tax Revenues and enhancing the quality of cultural tourism services," she stated.

Looking Ahead

As Bali continues to recover from the impacts of the pandemic and re-establish its position as a premier tourist destination, the management of the Foreign Tourist Tax will play a vital role in supporting sustainable tourism practices. The Bali government remains focused on ensuring that the tax serves its intended purpose of protecting the region’s rich cultural and natural heritage while fostering economic recovery.

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