Indonesia Considers Introducing Foreign Tourist Tax... "To Utilize for Tourism Site Development"

Indonesia, home to world-renowned tourist destinations, is considering imposing a tourism tax on foreign tourists.

Bali, Indonesia.
Photo by Asia Economy DB

On the 14th (local time), according to local media Kompas and others, Luhut Panjaitan, Indonesia's Coordinating Minister for Maritime Affairs and Investment, recently proposed the introduction of a tourism tax targeting foreign tourists through social media (SNS).

Minister Luhut argued that many regions abroad also impose tourism taxes on foreign tourists, which helps secure funds for tourism development and promotion.

He also shared a video of a Western man in Bali who was caught by the police for riding a motorcycle without a helmet and with his upper body exposed, and then protesting to the police, emphasizing that cases of disturbances and security threats caused by foreign tourists are increasing. He added that tourists from nationalities causing many problems should be charged higher tourism taxes as a form of 'disadvantage.'

Minister Luhut said, "To ensure Indonesia is not underestimated, it is necessary to show foreign tourists that we are a country that firmly upholds cultural values, traditions, and discipline."

Recently in Bali, many foreign tourists have been caught riding rented motorcycles without helmets or driving licenses. As this issue became problematic, the Bali local government is pushing for a ban on motorcycle rentals to foreigners.

Sandiaga Uno, Minister of Tourism and Creative Economy, also said, "We are studying the introduction of a tourism tax," adding, "The research results will come out within a few weeks, and the government will discuss it based on that."

Following the news of the government's consideration to introduce a tourism tax, voices of concern have grown in the tourism industry, fearing a decrease in foreign tourists.

Maulana Yusran, Secretary-General of the Indonesian Hotel and Restaurant Association (PHRI), said the tourism industry is still in the recovery phase from the COVID-19 pandemic and that now is not the right time to impose new taxes.

He added, "Foreign tourists themselves are Indonesia's foreign exchange earnings," and argued, "Travelers should not be burdened with additional charges."

This content was produced with the assistance of AI translation services.