Bali's Foreign Tourist Levy: Toward Accountability or Just Formality?

Bali is more than a tourist destination — it is the face of Indonesian tourism to the world. Contributing roughly 55% of national foreign-exchange earnings from tourism in the 2025/2026 period, the Island of the Gods remains a key pillar of regional and national economic stability, with visitor arrivals surpassing 7 million confirming its strategic position.

Behind those figures lies a basic question: tourists pay a levy to enter "paradise" — but where does the money actually go? The Foreign Tourist Levy (Pungutan Wisatawan Asing, or PWA) was introduced with a worthy aim: preserving culture and the environment. Without clear transparency, however, the policy risks being perceived as simply an added burden on visitors.

An investigation by the Attorney General's Office into alleged abuse of authority in managing PWA funds is a serious signal. Some Rp671.35 billion collected between 2024 and early 2026 is now under scrutiny. The gap between target and realisation is no longer merely an administrative issue — it goes to the heart of accountability, and raises an important question: is the current system effective enough?

Legally, the Bali Provincial Government's authority to collect the PWA rests on solid ground under Law No. 15 of 2023 on Bali Province, in line with the development vision of "Nangun Sat Kerthi Loka Bali," which emphasises balance between nature, people, and culture. Further arrangements are set out in Bali Regional Regulation No. 6 of 2023, which requires foreign tourists to pay a levy of Rp150,000, later updated through Regional Regulation No. 2 of 2025 (Perda 2/2025), with three main areas of focus: cultural protection, environmental preservation, and improving the quality of tourism services. The newer regulation also underlines the importance of managing the fund with integrity and free from corrupt practices.

In implementation, the Bali Provincial Government relies on a digital system through the Love Bali application, designed to facilitate cashless payment from registration through to the issuance of proof of payment — aimed at improving efficiency, transparency, and accuracy in recording transactions.

In practice, however, a number of problems remain:

1. Low collection effectiveness

Fund collection realisation in 2024 reached only around 30–40%, pointing to a low level of compliance. Many tourists have not paid the levy, partly because the collection system remains passive and not yet optimally integrated at points of arrival.

2. An imbalance in budget allocation

Findings from the Ombudsman of the Republic of Indonesia's Bali representative office point to an imbalance in budget distribution: Rp218 billion was allocated for cultural protection, while waste management received only Rp40 billion — even as Bali faces serious challenges in waste management and public safety. A lack of infrastructure such as street lighting and CCTV has contributed to a rise in crime, reaching 4,498 recorded cases in 2025.

Accountability for the fund cannot be demonstrated through financial reports alone. The public and tourists expect tangible results — a clean environment and a real sense of safety. An imbalance between what tourists contribute and the quality of service they receive risks eroding the policy's legitimacy.

3. Escalation into criminal law

The Attorney General's Office's investigation, underway since March 2026, shows this issue is no longer purely administrative. Its examination of budget documents and related officials points to indications of serious irregularities.

4. Regulatory reform as a solution

Perda 2/2025 introduces an incentive scheme for third parties, such as hotels and travel agencies, to help with fund collection, alongside administrative sanctions for tourists who fail to pay — including restricted access to tourist attractions. The PWA is an important fiscal instrument, but its success depends heavily on transparency and accountability. Concrete steps are needed, including accelerating cooperation with immigration authorities so collection can take place directly at points of entry.

Ultimately, public trust can only be built through tangible benefit. Tourists and the community are entitled to feel the direct impact of this levy — whether through a well-maintained environment, adequate infrastructure, or a strong security system. Compliance with the regulation is not merely an administrative obligation; it is part of safeguarding the quality and dignity of Bali's tourism industry going forward.