Indonesia Collaborates with Asian Development Bank to Revitalize Bali’s Tourism Sector
Denpasar, August 29, 2025 — Indonesia’s Coordinating Ministry for Economic Affairs has joined forces with the Asian Development Bank (ADB) to spearhead the revitalization of Bali’s tourism industry, prioritizing sustainable development and effective management over immediate financial aid.
The collaboration was highlighted during a recent meeting in Denpasar, where Herfan Brilianto Mursabdo, Assistant Deputy for Tourism Development at the Coordinating Ministry for Economic Affairs, emphasized the value of ADB’s expertise in managing tourism infrastructure and mitigating project risks. “The ADB partnership is not about funding alone,” Herfan stated, “but about leveraging their international best practices to help us overcome Bali’s tourism challenges effectively.”
A Strategic Approach Ahead of Funding Discussions
Currently, the ministry is focused on defining a more suitable development concept for Bali’s tourism before moving forward with funding negotiations. This measured approach aims to coordinate financing from multiple sources, including the state budget, regional governments, and private stakeholders.
“We want to ensure synergy among all parties involved,” Herfan explained. “ADB’s role in project risk management is crucial—not only to secure funding, but to minimize potential risks that could impact Bali’s tourism sustainability.”
Key Challenges in Bali’s Tourism Growth
The discussions identified several critical issues impeding Bali’s tourism sector. Infrastructure gaps remain a significant concern alongside operational challenges such as waste management and maintenance of the island’s beaches. Furthermore, sustainability issues regarding energy use and natural resource conservation were underscored.
“Bali’s popularity with foreign tourists is a double-edged sword,” Herfan remarked. “While tourism drives economic growth, we must carefully balance visitor numbers with the island’s limited environmental capacity. Given Bali’s status as Indonesia’s primary tourism gateway, these concerns require urgent attention.”
Local Government Calls for Guidance and Support
I Wayan Sumarajaya, Head of the Bali Tourism Office, acknowledged the existing development roadmap but highlighted the ongoing need for expert guidance. “Our focus remains on fostering high-quality, culturally dignified tourism,” he said. “However, despite progress, numerous challenges persist, especially those related to environmental sustainability and regional disparities.”
Summarizing the provincial government’s priorities, Sumarajaya outlined three main areas requiring support: environmental and natural resource protection, waste disposal solutions, and addressing the over-concentration of development in South Bali. These issues have contributed to increased congestion and waste, impacting the quality of life for residents and the overall tourist experience.
A Collaborative Path Forward
The partnership between Indonesia’s Coordinating Ministry for Economic Affairs and the Asian Development Bank represents a concerted effort to provide practical solutions for the island’s tourism issues. By combining fiscal prudence, expert risk management, and sustainable development strategies, the collaboration aims to secure Bali’s future as a premier global tourist destination without compromising its unique cultural and environmental heritage.
As Bali continues to attract millions of visitors annually, the ongoing dialogue and joint efforts with international partners like the ADB will be essential in addressing the sector’s complex challenges and sustaining tourism growth for generations to come.
Add a comment