Indonesia Partners with Asian Development Bank to Revitalize Bali Tourism Sector
Denpasar, August 29, 2025 — The Indonesian Coordinating Ministry for Economic Affairs has formed a strategic partnership with the Asian Development Bank (ADB) aimed at revitalizing Bali’s tourism industry. This collaboration focuses on sustainable development and effective management of the sector, rather than immediate financial assistance.
During a meeting held in Denpasar on Friday, Herfan Brilianto Mursabdo, Assistant Deputy for Tourism Development at the Coordinating Ministry for Economic Affairs, emphasized that ADB’s involvement would primarily leverage its expertise in project risk management and international best practices. This approach is intended to help minimize risks related to tourism infrastructure and management challenges on the island.
“We, along with the Asian Development Bank team, are international partners with whom we regularly discuss issues. They possess international best practices, so we can also leverage their expertise, particularly in infrastructure and tourism,” explained Herfan. He added that the current phase is focused on conceptualizing improved tourism development strategies before progressing to funding discussions. “We need to effectively manage financing from the state budget, regional governments, and the private sector. This requires synergy with partners like the ADB, as their expertise in project risk management helps us minimize risks, not just secure funding.”
Key challenges identified for Bali’s tourism sector include infrastructure gaps, waste management problems, beach maintenance, and sustainable energy and natural resource use. Given Bali’s status as a major international tourist destination, balancing the influx of foreign visitors with the island’s environmental and resource limitations is crucial.
“Given Bali’s large number of foreign tourists, we must carefully consider how to balance their presence with the island’s limited resources. This is being discussed because Bali is Indonesia’s main gateway,” Herfan said.
I Wayan Sumarajaya, Head of the Bali Tourism Office, acknowledged the necessity for guidance despite the existing development roadmap. “Bali’s future tourism development will focus on high-quality and dignified cultural tourism. However, Bali’s tourism sector is heavily influenced by foreign tourist arrivals. Although our industry has developed, many problems remain,” he noted.
The Bali Provincial Government has categorized the issues requiring intervention into three main areas: environmental and natural resource concerns, waste management, and the over-concentration of development in South Bali. Sumarajaya highlighted increasing congestion, rising waste production, and regional disparities on the island, underscoring the need for sustainable solutions.
“We are witnessing increasing congestion, mounting waste production, and regional disparities. Hopefully, the presence of the Coordinating Ministry for Economic Affairs and the Asian Development Bank can help provide solutions and assistance,” he said.
This partnership aligns with broader efforts in Indonesia to bolster sustainable tourism and addresses long-standing concerns associated with tourism growth on Bali, including environmental sustainability and infrastructure resilience.
Related developments:
- Bali tourism continues to thrive, despite a rise in violations by foreign visitors.
- Indonesia intensifies collaboration with various stakeholders to tackle tourism sector challenges in Bali.
- Government initiatives to promote sustainable tourism in Bali include partnerships with local brands.
- Bali and Japan explore deeper cooperation in tourism and education sectors.
As Bali strives to maintain its position as a leading global tourist destination, the collaboration between Indonesia’s government agencies and the Asian Development Bank represents a pivotal step toward sustainable and balanced tourism growth.
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