Indonesia and Asian Development Bank Collaborate to Revitalize Bali’s Tourism Sector
Denpasar, August 29, 2025 — In a significant move to enhance Bali’s tourism industry, Indonesia’s Coordinating Ministry for Economic Affairs has partnered with the Asian Development Bank (ADB) to support the revitalization of the island’s vital tourism sector. The collaboration aims to leverage ADB’s international expertise in project risk management and sustainable development, focusing on long-term improvements rather than immediate financial aid.
During a meeting held in Denpasar on August 29, Assistant Deputy for Tourism Development at the Coordinating Ministry, Herfan Brilianto Mursabdo, emphasized that ADB’s role extends beyond funding. “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,” he said.
Addressing Key Challenges in Bali’s Tourism
The partnership emerged from the shared goal of finding more effective ways to manage Bali’s growth as a premier tourist destination while addressing persistent challenges. At this initial stage, the focus is on developing a suitable tourism development concept before entering formal financial discussions. Herfan noted, “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 issues identified by the Coordinating Ministry include infrastructure deficits, ineffective tourism management such as waste disposal and beach maintenance, and sustainability concerns tied to energy consumption and natural resource use. Managing the environmental impact of a large influx of foreign visitors remains a top priority, given Bali’s status as a major gateway for international tourism.
Provincial Perspective: Focus on Sustainable and Quality Tourism
I Wayan Sumarajaya, head of the Bali Tourism Office (Dispar), acknowledged the need for continued guidance despite existing development roadmaps. He stated, “We all understand that 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.”
The Bali Provincial Government has grouped its concerns into three broad categories:
- Environmental and natural resource management
- Waste management
- Over-concentration of development in South Bali
Sumarajaya highlighted the consequences of unchecked growth: “What we are witnessing and experiencing is 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.”
Looking Ahead: Collaboration for Balanced Growth
This collaboration signals the Indonesian government’s commitment to ensuring Bali’s tourism sector grows sustainably and responsibly. By combining local insights with ADB’s global experience and risk management capabilities, the partnership aims to craft innovative solutions that balance economic growth with environmental preservation.
As Bali continues to welcome millions of visitors each year, efforts like this are crucial to maintaining the island’s cultural heritage and natural beauty while fostering a prosperous and resilient tourism industry.
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