Indonesia: Indonesian government considers new tax for foreign tourists

The idea of a new tax for tourists comes in a context marked by controversial incidents concerning tourists, which have been relayed on social networks in recent months. AP - Firdia Lisnawati

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This phase of reflection comes in a context marked by controversial incidents concerning tourists, which have also been relayed on social networks in recent months. If the authorities are paving the way for a possible new tax for tourists, tourism stakeholders remain very cautious.

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With our correspondent in Kuala Lumpur, Juliette Pietraszewski

In Indonesia, the video of a shirtless foreign tourist riding a motorcycle without a helmet and arguing with police officers in Bali has made the rounds of the web for example. Bali has also deported dozens of people for abusing their tourist visas, hence the government's desire to implement a new tax.

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A tax plan is currently under consideration ": this is what the Indonesian Ministry of Tourism said this week. A speech in line with the Minister of Maritime Affairs who also called for a new tax.

According to the ministries, a new tourist tax for foreigners could further develop the country's tourist destinations or be used for environmental conservation.

Fears that tourists will cancel their trips

But this idea does not seem to appeal to all players in the tourism sector, who for some fear negative consequences if this tax were to see the light of day: "This should not lead foreign tourists to cancel their plans to visit Indonesia," warns the Indonesian association of micro, small and medium enterprises.

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Now is not the right time to impose such a tax " says the Indonesian Association of Hotels and Restaurants as Indonesia slowly recovers from the Covid-19 crisis. Others also point to the indirect contribution of tourists to tax revenues, by paying taxes via hotels and restaurants.

Within a few weeks, the tax plan under consideration should be clarified by the Indonesian authorities.

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  • Indonesia
  • Tourism