Indonesia’s New Tourism Law: Towards Sustainable and Inclusive Growth
In October 2025, Indonesia passed a major amendment to its Tourism Law, marking a new direction for the nation’s travel and hospitality sector. The goal is to create a system where tourism serves not only as an economic driver but also as a foundation for local community empowerment, cultural preservation, and environmental protection.
Why Was the Change Needed?
In recent years, Indonesia—especially Bali—has experienced explosive tourism growth. However, this expansion brought significant challenges:
- Overloaded infrastructure,
- Environmental degradation,
- Unequal benefits for local communities, and
- The rise of unregulated, digital-platform-based tourism services.
The new law, often called the “third amendment” to the 2009 Tourism Law, aims to address these problems comprehensively.
Key Highlights of the New Law
1. Inclusive and Sustainable Tourism
The law prioritizes community-based tourism, ensuring that local residents actively participate in and benefit from the industry’s growth while promoting sustainability.
2. Adapting to the Digital Era
Recognizing the role of technology, the legislation supports a more flexible, innovation-friendly environment for businesses operating through apps, online booking systems, and digital platforms.
3. Introduction of a Tourism Levy
The amendment introduces the option for a national tourism levy on foreign visitors. The collected funds will support sustainable projects, infrastructure, and cultural preservation.
4. Emphasis on Cultural and National Values
Tourism is recognized as more than an economic activity—it’s an expression of Indonesia’s identity and cultural diplomacy. The law emphasizes the integration of heritage protection and cultural promotion into tourism policies.
What Does This Mean in Practice?
- Local communities will gain a fairer share of tourism-related income.
- Businesses will be expected to follow sustainability and social responsibility standards.
- Travelers may encounter new community-driven tourism experiences and possibly new entry levies.
Industry Concerns
Some stakeholders, including the Indonesian Tourism Industry Association (GIPI), have voiced concerns that the law may centralize decision-making and reduce private sector influence in national tourism strategy.
What’s Next?
The parliament has passed the bill, and it now awaits presidential ratification. Implementation details will be defined through follow-up regulations in the coming months.
Conclusion
Indonesia’s revised Tourism Law signals a shift from mass tourism toward quality, inclusive, and sustainable tourism.
If implemented effectively, Indonesia could become a regional model for how to balance economic growth with environmental stewardship and community wellbeing.