Indonesia has formally reshaped its tourism governance framework with the enactment of Law No. 18 of 2025, the Third Amendment to Law No. 10 of 2009 on Tourism, which came into force on 29 October 2025.
Although the amendment has attracted limited mainstream coverage, legal and industry observers say it introduces far-reaching structural changes to how tourism is planned, regulated, and financed—particularly in high-pressure destinations such as Bali, where sustainability, zoning, and enforcement issues have drawn increasing government attention.
At its core, the revised law signals a clear policy shift: Indonesia’s tourism sector is moving toward a data-driven, ecosystem-based, and sustainability-oriented governance model.
Tourism Development Must Now Follow an “Ecosystem-Based” Approach
For the first time, Indonesia’s tourism law explicitly requires tourism development to be structured around tourism ecosystems, rather than stand-alone projects.
The amendment defines 12 core ecosystem elements, including:
- Tourism industry strengthening
- Culture-based tourism development
- Digital integration
- Sustainable destination management
- Human resource and competency development
Under the new framework, government planning and budgeting must be grounded in research, data analysis, and policy studies, involving universities, regional governments, and tourism institutions.
According to policy analysts, this provision effectively limits ad-hoc development, speculative projects, and short-term licensing strategies, particularly at the provincial and regency levels. Projects unable to demonstrate ecosystem alignment are expected to face greater regulatory scrutiny.
Similar ecosystem-based approaches have been highlighted by UNWTO, as governments seek to balance tourism growth with environmental and social pressures.
Integrated National Tourism Data System Mandated
The law also mandates the creation of a national, integrated tourism data and information system, designed to consolidate data on:
- Tourism destinations and attractions
- Strategic tourism areas
- Types of tourism activities
- Tourism businesses and workforce
- Visitor numbers and tourist behavior
Industry observers say this will strengthen coordination between ministries, regional governments, and enforcement agencies. Over time, operating outside formal licensing, zoning, and reporting frameworks is expected to become increasingly difficult.
This move mirrors broader digital governance trends reported by The World Bank and covered by Bloomberg, which note that data integration is becoming central to regulatory enforcement in emerging markets.
Stricter Destination Management and Tour Guide Rules
Destination management rules are also tightened under the amended law, particularly regarding tour guiding activities.
Key provisions include:
- Tourists must be guided by certified Indonesian tour guides
- Certified guides must work in coordination with local guides
- Foreign tour guides may operate only when accompanied by certified Indonesian guides
The policy reflects a broader objective of local workforce protection and empowerment, a theme increasingly emphasized in regional regulations, especially in Bali.
For villa operators, resorts, and experience-based tourism businesses, compliance is no longer optional. Legal practitioners note that operational procedures will need to integrate certification and guide compliance checks.
Expanded Obligations for Tourism Businesses
While earlier prohibitions—such as damaging tourism sites—have been removed as standalone offenses, they reappear as explicit obligations for tourists and citizens.
More importantly, tourism businesses are now legally required to:
- Maintain non-discriminatory services
- Implement local empowerment and community-based programs
This aligns with Bali’s regional sustainability policies and reflects international best practices highlighted by UNESCO and reported by Reuters in the context of cultural destination management.
Legal Basis for Foreign Tourist Levies Established
One of the most closely watched provisions is the formal legalization of foreign tourist levies.
Under the new law, the government may impose levies on foreign visitors, with funds earmarked for:
- Tourism sector development
- Destination management and sustainability initiatives
The specific rates and collection mechanisms will be detailed in a forthcoming Government Regulation.
Analysts note that this policy is no longer confined to Bali. With its inclusion in national legislation, foreign tourist levies now have a clear legal foundation across Indonesia, echoing practices in destinations such as Thailand and Japan, as reported by Bloomberg.
Incentives Promised, but Details Remain Unclear
The amendment reiterates the availability of:
- Fiscal incentives, including tax facilities
- Non-fiscal incentives, such as simplified licensing, immigration facilitation, and infrastructure support
However, as with previous versions of the tourism law, implementing regulations and eligibility criteria have yet to be issued. Legal experts caution that businesses will need active regulatory engagement to access these incentives in practice.
Financing Access Expanded, Small-Island Priority Removed
Access to tourism financing is expanded to include:
- Medium-scale enterprises
- Cooperatives, alongside micro and small businesses
Notably, the law removes the previous explicit prioritization of small-island tourism development, signaling a subtle shift in national funding focus.
What the New Tourism Law Means for Investors and Operators
The amendment reinforces trends already visible across Indonesia’s tourism sector:
- Regulation is becoming more structured and enforceable
- Data, zoning, licensing, and sustainability policies are increasingly interconnected
- Informal or non-compliant tourism models face higher legal and operational risk
- Community integration and local empowerment are now legal expectations, not voluntary commitments
