JAKARTA – The Indonesian House of Representatives (DPR RI) is advocating for a new regulation that would require every foreign tourist visiting the country to pay a tourism tax. This proposal is part of the Tourism Bill currently under discussion, aiming to increase government revenue through the tourism sector.

Chairman of Commission VII DPR RI, Saleh Partaonan Daulay, stated that the initiative is designed to ensure that Indonesia benefits more from international tourism. “At the moment, many foreign tourists can visit Indonesia without significantly contributing to state revenue. This tax will help the country maximize its economic potential,” Daulay said, as quoted by Antara on Tuesday, February 25, 2025.

Proposed Tax Structure for Foreign Visitors

According to Daulay, the proposed tax will be applied to individual travelers upon entry into Indonesia. While the exact amount has yet to be determined, the government is assessing a fair rate that aligns with international standards.

“This means that when people come to Bali or other tourist destinations, they won’t be able to enter for free. They will need to contribute through this tax,” he explained.

Daulay highlighted that, in many cases, visitors arrive in Indonesia with limited budgets, which results in minimal financial benefits for the local economy. “Some travelers spend only a small amount of money, and that doesn’t significantly impact our national income. We need to rethink how we can generate more revenue from tourism,” he added.

Strengthening Local Tourism and Economy

Beyond the financial benefits, the Tourism Bill also aims to promote local tourism by supporting rural tourism initiatives. By enhancing tourist villages, the government hopes to encourage economic activity in local communities and increase employment opportunities.

“We want people in rural areas to see tourism as an opportunity to improve their livelihoods. Developing tourist villages will allow locals to benefit directly from the industry,” Daulay said.

Indonesia is currently working to strengthen its tourism sector to compete with other ASEAN countries like Thailand, which has successfully leveraged international tourism as a major economic driver.

Cultural Diplomacy Through Tourism

In addition to boosting revenue, DPR RI is exploring the idea of utilizing the tourism industry for cultural diplomacy. The goal is to promote Indonesian culture globally through its embassies and diplomatic missions.

“Tourism can be a tool for cultural diplomacy. If properly managed, it can help introduce Indonesia’s identity to the world,” Daulay explained.

However, he acknowledged that this initiative faces challenges, particularly because the Indonesian Ministry of Foreign Affairs currently holds exclusive rights over diplomatic activities.

“We are still working on the right approach to integrate tourism into our diplomatic strategy,” he added.

With this new proposal, Indonesia aims to create a more sustainable tourism sector that not only attracts visitors but also contributes significantly to national economic growth.