DENPASAR — Bali Governor Wayan Koster welcomed Indonesian Minister of Tourism Widiyanti Putri Wardhana in a high-level meeting held at Gedung Kertha Sabha, Jayasabha, Denpasar, on Friday (July 18, 2025).
The meeting served as a strategic forum to discuss the challenges and policy direction for Bali’s future tourism development.
Also attending were Deputy Minister for Industry and Investment Rizki Handayani Mustafa, Deputy Minister for Marketing Ni Made Ayu Marthini, Deputy Minister for Destination and Infrastructure Development Hariyanto, along with regency representatives including the Regents of Buleleng, Karangasem, and Gianyar, and key tourism organizations such as ASITA, GIPI, and PHRI.
Governor Koster shared both the progress and ongoing challenges of Bali’s development. He raised concerns about demographic issues, notably the decline in the native Balinese population, which has prompted the government to promote a “four-child family” campaign, shifting away from the previous two-child policy.
“We are promoting four children per family to preserve the cultural and social structure of Balinese society,” he said.
Bali recorded an economic growth rate of 5.48% in 2024 with a GRDP of IDR 67.32 million per capita, exceeding pre-pandemic levels. Poverty stands at 3.45%, while the Gini ratio of 6.48 reflects a disparity that requires urgent action. Bali also boasts one of the lowest unemployment rates and the fifth-highest Human Development Index (HDI) in Indonesia.
Regional Imbalances and Overdependence on Tourism
The Governor highlighted regional development disparities. Around 71% of hotels and 69% of restaurants are concentrated in South Bali, particularly in Badung, Gianyar, Tabanan, and Denpasar.
“Locally generated revenue (PAD) is heavily skewed. Badung, for example, earns more than IDR 6 trillion, while other regions only manage around IDR 1 trillion,” Koster noted.
In 2024, Bali welcomed 6.4 million international visitors, surpassing pre-pandemic numbers. The island contributed 46% of Indonesia’s total foreign tourist arrivals, generating IDR 107 trillion in foreign exchange from the national total of IDR 243 trillion. However, the Governor warned of the island’s 66% economic dependence on tourism, which makes it vulnerable to shocks such as the COVID-19 pandemic.
Pressing Environmental, Cultural, and Social Challenges
Governor Koster outlined several pressing issues facing Bali:
-
Conversion of productive land for tourism accommodations
-
Clean water scarcity, increasing waste volume, and ecosystem degradation
-
High internal migration to South Bali, leading to congestion
-
Surging foreign investment, including land purchases by foreigners under the guise of local marriages
-
Irresponsible tourist behavior, including disrespect for sacred sites and violations of cultural norms
-
Cultural dilution, as traditional arts are distorted and development disregards local wisdom
Long-Term Vision and New Tourism Regulations
Governor Koster emphasized Bali’s long-term development vision, guided by the 100-Year Development Plan and supported by Law No. 15/2023 on the Province of Bali. Priorities include energy independence (without coal-fired plants), food sovereignty, clean water access, infrastructure, and transportation systems.
In tourism, Bali adopts a culture-based, high-quality, and dignified tourism model. This is reflected in Regional Regulation No. 5/2022, Governor Regulations, and circulars on tourism governance that encourage the arrival of tourists who truly care about Bali.
“Tourists will be more strictly regulated. They must have financial proof, return tickets, and pay the tourism levy. Entry will no longer be casual. We are cracking down on illegal villas and unregistered accommodations, and controlling hotel development to protect productive land,” he stated.
The Governor also outlined plans for new destinations, including the Turyapada Tower in North Bali and the Bali Arts and Cultural Center (PKB) in Klungkung, with support from Badung, Denpasar, and Gianyar to decentralize economic growth.
OSS System Under Scrutiny
Governor Koster openly criticized the implementation of the Online Single Submission (OSS) system in Bali, which he said has triggered numerous issues, particularly in tourism licensing that conflicts with local values and needs.
“We are conducting a review of the OSS system, as it has created problems on the ground. We hope the Ministry of Tourism will support a more adaptive licensing framework aligned with Balinese wisdom,” he said.
He also called for stronger national budget (APBN) support for Bali’s strategic infrastructure development, particularly national roads and public transport systems.
“This is not just about revenue-sharing. It’s about commitment. Bali generates massive foreign exchange, and we need real support to boost competitiveness,” he said.
Minister Widiyanti: MRT, Waste Management, and Equitable Development
Tourism Minister Widiyanti Putri emphasized Bali’s strategic role as Indonesia’s tourism gateway.
“Many people know Bali more than they know Indonesia. That’s a big opportunity—and a big responsibility,” she said.
She acknowledged key challenges including:
-
Overcrowding and traffic in South Bali (especially Canggu)
-
The rise of unlicensed alternative accommodations, with over 5,000 villas identified
-
Waste management and the need for better tourist education
The Minister also praised Bali’s single-use plastic ban, which is supported by both the ministry and the central government.
She stressed the importance of building infrastructure such as MRT or subway systems, and of unlocking the tourism potential of areas outside South Bali by improving accessibility and ecosystem support—including further discussions on the North Bali Airport project.
The Ministry also backs specialized tourism branding, such as gastronomy and wellness tourism in the Sanur Special Economic Zone (SEZ).
“We’re ready to support a large-scale ‘Do & Don’t’ campaign to help educate tourists on respecting local culture,” she added.
Toward Quality Tourism and Accommodation Reform
Minister Widiyanti reaffirmed the central government’s commitment to quality tourism, aimed at attracting visitors who stay longer, spend more, and respect Balinese culture.
“It’s no longer about quantity. We want tourists who value what Bali truly offers,” she said.
To address illegal accommodation issues, a joint task force will be formed and a Memorandum of Understanding (MoU) will be established with the Bali Provincial Government to strengthen coordination and legal enforcement.
The meeting concluded with a shared commitment to build a more inclusive and sustainable tourism landscape in Bali.
Governor Koster closed with a powerful reminder:
“Bali is an inseparable part of Indonesia—and the world. Even the smallest incident here echoes globally. That’s why managing Bali must be done with sincerity and vision, so that it truly benefits the people and preserves our heritage,” he stated. (*)
