Indonesian Ombudsman Launches Investigation into Bali Tourism Tax Mismanagement
The Indonesian Ombudsman has committed to examining allegations of mismanagement in the tourism sector, with particular emphasis on Bali and the Bali Tourism Tax Levy introduced on February 14, 2024. There are growing concerns that the policy has fallen short of its intended objectives.
Ombudsman’s Press Conference Highlights Key Issues
On January 27, 2024, the Indonesian Ombudsman held an informal press conference titled “Bali Cultural Tourism Service Governance for Foreign Tourists in Bali Province.”
During the event, Hery Susanto, a representative of the Indonesian Ombudsman, spoke about the ongoing investigation. Susanto emphasized, “We have a lot of tourism potential, but much remains underutilized. This is unfortunate. Meanwhile, numerous issues exist within this sector.”
He identified limited infrastructure and transportation routes as primary concerns. Susanto also highlighted the prevalence of extortion, stating, “This is a shame. We aim to uncover what regulatory issues persist in this sector.”
Critiques of the Bali Tourism Tax Levy
Ni Nyoman Sri Widhiyanti Sri, the Head of the Indonesian Ombudsman’s Bali Representative, addressed media concerns regarding the implementation of the Bali Tourism Tax Levy. Widhiyanti acknowledged the policy’s potential benefits, stating, “It can be useful in improving the quality of tourism services.”
However, she critically noted, “The policy has not been effective over the last year. Despite its great potential, it has not delivered the intended results.”
Low Compliance and Misallocation Concerns
Only 35% of international tourists reported paying the Bali Tourism Tax Levy, with many avoiding the mandatory IDR 150,000 fee. Widhiyanti stressed the importance of both increasing compliance and ensuring that collected funds are used effectively and transparently.
She explained, “The funds must be allocated to cultural preservation and environmental management, as stipulated by Regional Regulation (Perda) Number 6 of 2023 regarding the Pay for Foreign Tourists. We want the Cultural Service to distribute these proceeds directly to Bali’s traditional villages.”
Widhiyanti outlined several areas for improvement, including facilitating easier payment methods and implementing sanctions against non-payers. She concluded, “We need to improve the payment system system and find, including how to sanction foreigners who do not pay.”
