Bali Governor Wayan Koster has announced plans to revise the regional regulation governing the mandatory foreign tourist levy, citing implementation challenges and low compliance rates.
Speaking at a plenary session of the Bali Regional Legislative Council (DPRD) on 19 March 2025, Koster noted that out of 6.333.360 foreign tourists visiting Bali in 2024, only 2.121.388—approximately 33.5%—had paid the levy.
“The foreign tourist levy serves as a funding source for protecting Bali’s culture and natural environment. However, after more than a year of implementation since 14 February 2024, we have encountered several obstacles in the field,” Koster said.
Key Revisions to the Regulation
Following a comprehensive evaluation, the governor outlined six key changes aimed at optimizing the levy’s effectiveness:
- Expanded Scope – Adjustments to the regulation’s scope to ensure broader and clearer application.
- Exemptions – The inclusion of new provisions specifying categories of foreign tourists who will be exempt from the levy.
- Use of Funds – While the levy was initially earmarked solely for cultural and environmental preservation, the revision will allow funds to be used for improving tourism services, enhancing tourism destinations, strengthening tourism industry standards, and supporting marketing efforts.
- Partnerships – The new regulation will permit the provincial government to collaborate with third parties through formal agreements to facilitate levy collection.
- Service Fees – A provision allowing individuals or groups assisting in levy collection to receive a service fee of up to 3% of the collected amount.
- Administrative Sanctions – The introduction of penalties for foreign tourists who fail to comply with the levy requirement.
Revised Regulation Expected in Two Weeks
Koster emphasized that the amendments aim to improve compliance and ensure smoother enforcement.
“I am committed to ensuring this levy functions as intended. The regulation will be finalized within two weeks,” he said.
