Using Bali’s Tourism Revenue Advantage to Gain Central Government Support for Strategic Infrastructure Development
DENPASAR — Bali Governor Wayan Koster continues to intensify efforts to optimize the Foreign Tourist Levy (PWA), positioning it as a key driver for the development of Balinese culture and the preservation of the island’s natural environment.
After holding discussions with Coordinating Minister for Law, Human Rights, and Immigration Yusril Ihza Mahendra, Minister of Immigration and Corrections Gen. (Ret.) Agus Andrianto, and other relevant ministers in Jakarta, Governor Koster has now gathered all key tourism stakeholders in Bali to work together in maximizing the implementation of the Foreign Tourist Levy (PWA). The goal: to strengthen Bali’s Culture-Based, High-Quality, and Dignified Tourism.
The meeting, held at the Ksirarnawa Building, Bali Art Center, Denpasar, on Thursday (October 30, 2025), was attended by major tourism figures including the Chairman of PHRI Bali, Prof. Tjok Oka Sukawati, and the Chairman of GIPI Bali, Ida Bagus Agung Partha Adnyana.
During the event, it was explained that the collection of the Foreign Tourist Levy could be implemented in cooperation with third parties, including:
a) Collecting Agents,
b) Benefit Partners, and
c) Endpoints.
These partnerships will be formalized through cooperation agreements, with each partner entitled to a service fee of up to 3 percent of the total levy collected.
Governor Koster emphasized that the PWA plays a vital role in funding cultural development and environmental preservation through Desa Adat (traditional villages).
“As of October 30, 2025, the total PWA collected has reached IDR 318 billion — the same as in December 2024,” said Koster. He projected the figure could reach up to IDR 380 billion by December 2025.
Although this amount is still below the target, Koster underscored that it remains crucial for supporting culture and environmental programs. Each Desa Adat is expected to receive around IDR 300 million per year.
“If all traditional villages receive funding, the total would be around IDR 450 billion,” he explained. “So when people ask what the PWA is for — it’s for culture and waste management.”
In addition to optimizing the levy, the former three-term Member of Parliament from PDI Perjuangan revealed that he is actively negotiating with the Central Government to secure infrastructure support for Bali.
Koster’s negotiation strategy rests on Bali’s strong contribution to Indonesia’s tourism foreign exchange earnings. In 2024, Bali welcomed 6.3 million international visitors, generating IDR 167 trillion in tourism revenue — representing 53 percent of Indonesia’s total tourism foreign exchange income of IDR 312 trillion.
“I hope these negotiations will proceed smoothly so that we can accelerate infrastructure development to support Bali’s tourism. This is my focus — ensuring Bali’s tourism continues to thrive,” he asserted.
Koster emphasized that without robust infrastructure, Bali’s tourism competitiveness would decline.
“If we continue to fall behind and become the subject of negative narratives online, tourists will turn away from Bali. That’s why we must build a system that enables us to compete effectively in the future. We cannot rely on a single gateway — our fortune lies in tourism, and we must use it wisely to sustain Bali’s economy,” he said.
In his closing remarks, Governor Koster called on all tourism stakeholders to unite and take collective action.
“This must be our shared understanding. So I ask everyone — don’t be indifferent. Let’s move forward together, with the same spirit and purpose, so that the PWA can reach its target and make Bali’s tourism stronger, more resilient, and more competitive,” he concluded. (*)
