Observer Claims Foreign Tourist Levy Funds Misappropriated and Used for Corruption

A senior legal practitioner and politician from Bali, Gede Pasek Suardika, has alleged that much of the Foreign Tourist Levy (Pungutan Wisatawan Asing, PWA) fund usage constitutes corruption and funds are allocated inappropriately.

The Bali Provincial Government has legalised the PWA, which mandates all tourists entering Bali to pay Rp150,000 per person for each visit.

Suardika identified two main problematic areas in the PWA system: the upstream and downstream phases. At the upstream level, there is a discrepancy between the number of foreign tourists entering Bali and the amount of levies collected. At the downstream level, PWA funds are allegedly not being used entirely for their primary purpose of protecting Balinese culture and natural environment.

“Upstream, why is there a difference between the number of foreign tourists arriving and the amount of levies received? Downstream, why are many programmes not for the protection of Balinese culture and natural environment?” he stated when contacted on Sunday (15 March).

He noted that these problems could potentially result in state losses, both from suspected revenue leakage and budget usage that diverges from intended purposes. From a potential Rp1 trillion, only approximately Rp300 billion in receipts have been recorded.

Suardika also scrutinised several budget allocations he considered unrelated to Balinese cultural and environmental protection. These include village head incentives of Rp42.9 billion, the Turyapada Ring Road costing Rp10 billion, migrant population health insurance (BKK) of Rp1.5 billion, office public service provision of Rp8.69 billion, and tourism promotion of Rp4.3 billion. “This is clearly PWA fund misallocation and can be prosecuted. The original purpose of PWA was for cultural preservation and environmental protection,” he stated.

He argued that such programmes should not use PWA funds. He also believed the Turyapada Ring Road project should utilise other budget sources, such as motor vehicle tax, as road construction could damage the natural environment. “From trees to concrete and asphalt, which contradicts PWA’s purpose of preserving Bali’s natural environment,” he emphasised.

Another concern was the use of PWA funds for aci-aci yadnya (ceremonial activities) at Pura Sad Kahyangan totalling Rp5.6 billion from foreign tourist contributions. He described this as shameful for Balinese Hindus. “What is shameful for Balinese Hindus is that aci-aci yadnya at Pura Sad Kahyangan has apparently been performed by foreigners,” he said.

Suardika noted that PWA matters have now reached the Attorney General’s Office, known as the centre for handling special criminal cases. This includes the summons of Bali’s Civil Service Police chief Dewa Darmadi to the Attorney General’s Office on Thursday (12 March).

He believed that the Attorney General’s involvement stemmed from potential reluctance at the local level, considering that some Bali High Prosecution Office office land was gifted by the Bali Provincial Government. Nevertheless, he emphasised that legal proceedings must uphold the presumption of innocence.

According to the Bali Ombudsman, PWA receipts until 30 December 2024 reached only Rp317 billion, covering approximately 30 to 40 per cent of total foreign tourists visiting Bali. With 6.3 million tourists in 2024, potential receipts should have reached approximately Rp945 billion.

Data from Bank BPD Bali shows that approximately 92.57 per cent of foreign tourists paid PWA through credit cards, meaning payment occurred before arrival in Bali via the Love Bali system. Regarding regional income, PWA implementation has shown positive impacts on Regional Original Income (PAD).

Based on data from Bali’s Tax Office and Regional Finance Agency, Other Legitimate Regional Original Income increased by 19.50 per cent, from Rp401.4 billion to Rp479.7 billion between 2023 and 2024, with PWA contributing Rp317.88 billion.

PWA implementation has also correlated with increased budgets for Balinese cultural protection. Data from the Bali Provincial Culture Office shows budgets increased from Rp107.1 billion in 2024 to Rp219.0 billion in 2025. Some funds support general allocations to regencies and municipalities for cultural preservation programmes, including the Bali Arts Festival.

In environmental matters, the Bali Provincial Forestry and Environment Office manages Rp40 billion in general allocations in 2025 for waste management programmes, distributed to Bali’s regencies and municipalities: Denpasar City Rp10 billion, Tabanan Regency Rp5 billion, Gianyar Regency Rp5 billion, Bangli Regency Rp4 billion, Buleleng Regency Rp4 billion, Karangasem Regency Rp4 billion, Klungkung Regency Rp4 billion, and Jembrana Regency Rp4 billion.

Subak (traditional irrigation system) preservation programmes have also received attention. The Bali Provincial Indigenous Community Advancement Office recorded Rp10 million distribution per subak to 2,858 subaks in 2024, increasing to Rp15 million per subak to 2,862 subaks in 2025, representing an additional Rp5 million per subak.