Governor Koster Addresses Land Conversion and Foreign Business Growth in Bali, Urges Caution Against Labeling It as Over Tourism
Denpasar, BaliNews.id — July 4, 2025
As Bali’s tourism industry continues to expand rapidly, Governor Wayan Koster acknowledges the complex challenges that come with this growth. During a specific working visit by Commission VII of the Indonesian House of Representatives (DPR RI) at Jayasabha, Denpasar, on Wednesday, July 2, Governor Koster highlighted pressing issues including agricultural land conversion to tourist accommodation, environmental pressures, water scarcity, severe traffic congestion, dominance of foreign business actors, regional development disparities, high population migration, limited public transport infrastructure, cultural influences from abroad, and the proliferation of illegal businesses managed by expatriates.
Tourism Growth vs. Emerging Challenges
Governor Koster spoke candidly with the visiting parliamentary delegation, led by Dr. Evita Nursanty Iqbal, whose mission was to gather regional insights for the deliberation of several legislative bills, including the Tourism Bill (RUU Kepariwisataan), which is part of the National Legislation Program (Prolegnas).
Dr. Evita expressed appreciation for Bali’s impressive tourism concept but also recognized the severity of ongoing issues. “This visit enables us to see firsthand the real conditions of Bali’s tourism sector, including concerns such as racketeering, potential over tourism, and villa business licensing,” she said.
Economic Significance of Bali’s Tourism
Governor Koster emphasized the vital role tourism plays in Bali’s economy, backing his remarks with data. “Out of 126 million tourists in ASEAN, 13 million visit Indonesia, with approximately 6.33 million coming to Bali alone. Bali contributes roughly 44 percent of Indonesia’s total tourism foreign exchange earnings, equivalent to Rp 107 trillion out of Rp 243 trillion nationwide. Tourism accounts for 66 percent of Bali’s Gross Regional Domestic Product (PDRB),” he stated.
Given this considerable economic contribution, Koster advocated for the Tourism Bill to include special provisions for major tourist destinations. “I suggest the bill includes norms that provide incentives for regions recognized as world tourism hubs, facilitating infrastructure development, strategic facilities, and necessary resources tailored to each region’s characteristics and interests,” he proposed.
Clarifying the Issue of Over Tourism
Despite acknowledging the real problems, Governor Koster urged caution in hastily attributing these challenges to over tourism. “These issues are real, but we should not directly conclude that Bali is suffering from over tourism. Bali’s land area is much larger than Singapore,” he explained. “What’s occurring is more related to the misconduct of tourists. Among approximately 6.4 million visitors, likely fewer than a thousand cause problems, but their impact on Bali’s image is significant.”
Steps Towards Responsible Tourism Management
Addressing the measures taken by the provincial administration, Koster revealed ongoing enforcement actions, including the deportation of hundreds of foreign nationals who violated regulations. However, these actions are calibrated carefully to avoid undermining the ongoing tourism recovery.
“Management and regulation efforts are continuing, ensuring enforcement is balanced and does not inadvertently hamper the tourism sector’s rebounding trajectory,” Koster concluded.
The working visit by Commission VII underscores the centrality of tourism to Bali’s socioeconomic fabric, while shining a light on the delicate balance required to sustain growth alongside cultural and environmental preservation. With the upcoming Tourism Bill, Bali’s government seeks to secure tailored legislative support that reflects its unique status as a global tourist destination.
For further clarifications or to report inaccuracies regarding this article, readers are encouraged to contact the editorial team via email or through the BaliNews.id website.
Tags: Governor Bali, Wayan Koster, land conversion, Tourism Bill (RUU Kepariwisataan), Bali tourism challenges, foreign businesses in Bali, over tourism debate.
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