Indonesia’s Tourism Law Has Changed Again: What Law No. 18 of 2025 Means for Investors and Operators

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On 29 October 2025, Indonesia quietly but decisively 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 officially came into force.

While it has received limited mainstream attention, this amendment carries significant implications for how tourism is developed, regulated, and financed — particularly in destinations like Bali, where regulatory enforcement and sustainability pressures are intensifying.

At its core, this amendment reflects one clear direction: tourism in Indonesia is moving toward a data-driven, ecosystem-based, and sustainability-oriented model.

Below is what investors, tourism operators, and destination managers need to understand.


1. Tourism Is Now Officially “Ecosystem-Based”

For the first time, Indonesian tourism law mandates that tourism development must be built around tourism ecosystems, not isolated projects.

The law introduces 12 ecosystem elements, covering areas such as:

  • Strengthening the tourism industry
  • Culture-based tourism
  • Digital integration
  • Sustainable destination management
  • Human resource development


This is not symbolic language. Government planning, budgeting, and policy decisions must now be grounded in research, data analysis, and policy studies, provided by stakeholders such as universities, local governments, and tourism institutions.

Why this matters:

Ad-hoc development, short-term licensing strategies, and speculative tourism models are increasingly out of alignment with national policy. Projects that cannot demonstrate ecosystem alignment will face greater scrutiny — especially at the provincial and regency levels.


2. A National Tourism Data System Is Coming

The amendment also mandates the creation of an integrated national tourism data and information system. This system will track:

  • Tourism destinations and attractions
  • Strategic tourism areas
  • Types of tourism activities
  • Tourism businesses and human resources
  • Visitor statistics and tourist behavior


For investors and operators, this signals tighter coordination between ministries, regions, and enforcement bodies. Over time, it will become much harder to operate outside formal licensing, zoning, and reporting structures.


3. Destination Management Rules Are Tightening

The law now clearly regulates who can guide tourists in Indonesia.

Key points:

  • Destination managers must use certified Indonesian tour guides
  • Certified guides must collaborate with local guides
  • Foreign tour guides may only operate if accompanied by certified Indonesian guides


This reflects a broader policy objective: local empowerment and protection of domestic tourism labor.

For destination owners, villa operators, resorts, and experience-based tourism businesses, this is not optional. Compliance procedures will need to be built into daily operations.


4. Rights and Obligations: More Responsibility for Businesses

While older prohibitions (such as damaging tourism sites) have been removed as standalone articles, they now reappear as explicit obligations for tourists and citizens.

More importantly for operators, tourism businesses are now required to:

  • Maintain non-discriminatory services (as before)
  • Implement local empowerment initiatives, including community-based programs


This aligns closely with Bali’s regional policies emphasizing community involvement, cultural preservation, and sustainability.


5. Foreign Tourist Levies Are Now Legal — Details Pending

One of the most closely watched changes is the formal legal basis for foreign tourist levies (pungutan). The law allows the government to collect levies from foreign tourists, with proceeds earmarked for:

  • Tourism sector development
  • Destination management and sustainability


The technical details — rates, collection mechanisms, and allocation — will be set out in a forthcoming Government Regulation.

Key takeaway:

Operators should anticipate cost implications, but also potential reinvestment into infrastructure, destination quality, and enforcement. This is not a “Bali-only” concept anymore — it is now anchored in national law.


6. Incentives Are Promised — But Still Undefined

The amendment reiterates that tourism businesses may receive:

  • Fiscal incentives (tax facilities)
  • Non-fiscal incentives (simplified licensing, immigration facilitation, infrastructure support)


However, as with previous versions of the law, no clear procedures or eligibility criteria are provided yet. This creates a familiar reality in Indonesia: incentives exist in principle, but proactive engagement with regulators is essential to actually access them.


7. Financing Access Has Expanded — With One Notable Omission

The law expands access to tourism financing to include:

  • Medium-scale enterprises
  • Cooperatives (alongside micro and small businesses)


However, the previous explicit prioritization of small-island tourism development has been removed — a subtle but notable policy shift.

What This Means in Practice

This amendment confirms what we are already seeing on the ground:

  • Tourism regulation is becoming more structured and enforceable
  • Data, zoning, licensing, and sustainability are now interconnected
  • Informal, poorly structured, or non-compliant tourism models face growing risk
  • Community integration and local empowerment are no longer optional narratives — they are legal expectations


For investors and operators in Bali and across Indonesia, this is a moment to reassess structure, licensing, and long-term positioning, not just market opportunity.

At Seven Stones Indonesia, we see this amendment as a necessary evolution. Sustainable, compliant, and community-aligned tourism is not a constraint — it is the only viable path forward.

Thank You for Your Inquiry

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To maintain our professional standard, we have established a strong presence in the center of Jakarta and Bali, and are expanding to Lombok to serve you better. Visit us at:

Jakarta
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Seminyak, Bali – 80361

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Opening Soon

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Name

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.