DENPASAR – Bali Governor I Wayan Koster has proposed that the provincial government collaborate with third parties to improve the collection of the foreign tourist levy. Under the proposal, third-party entities would receive a service fee of up to three percent of the total levy transactions.
Koster made the statement during a plenary meeting at the Bali Provincial House of Representatives (DPRD Bali) on Wednesday (March 19), where discussions focused on revising Regional Regulation No. 6 of 2023 concerning the levy on foreign tourists for the protection of Bali’s culture and natural environment.
“A person or group that cooperates with the provincial government in collecting the levy from foreign tourists may be given a service fee of up to three percent of the total transactions,” Koster stated.
He emphasized that third-party involvement is necessary to enhance levy contributions, as the current collection rate remains low. Since the implementation of the levy on February 14, 2024, only 33 percent of eligible foreign visitors have paid.
Out of the 6,333,360 foreign tourists who visited Bali in 2024, only 2,121,388 made the mandatory payment of IDR 150,000 per person. As a result, the total revenue collected in 2024 reached only IDR 318 billion—far below the expected IDR 945 billion.
“The total amount collected from February 14 to December 31, 2024, was around IDR 318 billion. This is still far from our expectations,” Koster noted.
He attributed the low compliance rate to an imperfect collection system, where payments have so far remained voluntary.
“This is not the fault of the tourists, but rather a flaw in the system,” he added.
To address this issue, Koster is also preparing administrative sanctions for foreign tourists who fail to pay the levy. However, he did not specify what these penalties would entail.
“Sanctions for tourists who do not fulfill their obligations will be regulated in the revised regional regulation,” he stated.
Meanwhile, Bali Tourism Office Head Tjokorda Bagus Pemayun mentioned that airlines could be one of the potential third-party partners for levy collection.
“We are considering airlines or other mechanisms, which will be determined in the regulation revision,” he said.