The Bali Observer

Monday, 21 September 2026

Koster vows tighter oversight of Bali revenue and tourist levy in 2026 budget

Bali Governor Wayan Koster has pledged to strengthen the provincial government’s management and oversight of regional revenue, including the foreign tourist levy, as part of deliberations on amendments to the 2026 regional budget.

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Editor: Mursyid Sonsang

· 4 min read

Denpasar — Bali Governor Wayan Koster has pledged to strengthen the provincial government’s system for managing and overseeing regional revenue, including the foreign tourist levy, as part of deliberations on amendments to Bali’s 2026 regional budget.

Speaking after a plenary session of the Bali Regional House of Representatives (DPRD Bali) on Monday, 14 September 2026, Koster responded to factional views on the draft regulation for changes to the 2026 “Semesta Berencana” Regional Budget, according to state broadcaster RRI’s Denpasar service. Local daily Bali Post also reported that the governor framed the move as part of efforts to ensure that local receipts, including retributions and the foreign tourist levy, are properly managed and monitored.

According to RRI, Koster said the provincial administration would “continue to strengthen the system of management and oversight of regional revenue, including retributions and the foreign tourist levy (Pungutan Wisatawan Asing, PWA).” Bali Post reported that he stressed each receipt must be accountable and directed to development programmes that benefit residents while maintaining Bali’s environmental sustainability and cultural heritage.

The governor linked revenue oversight to wider improvements in budget execution. He said monitoring and verification of programme implementation would be reinforced so official reports more accurately reflect conditions and achievements in the field, according to the RRI account of his remarks.

Focus on tourism-linked revenue

The foreign tourist levy, introduced in 2024, has become an important source of regional revenue, and its use has attracted scrutiny from legislators. A separate Bali Post report on DPRD discussions noted that the Gerindra-PSI faction requested detailed disclosure of how PWA funds are being used and questioned why the 2025 realization of the levy, at about Rp369.02 billion, fell short of the Rp500 billion target.

Tribun Bali likewise reported that the faction has pressed the provincial government for greater transparency on the PWA scheme and broader regional financing.

In his September 14 statement, Koster did not announce changes to the levy rate, new collection mechanisms or specific additional administrative requirements for tourists or tourism businesses. The RRI report on the plenary session focuses on the governor’s commitment to strengthen management and oversight, without detailing revised levy parameters or operational controls.

Legislators have also highlighted risks that could affect tourist arrivals and, by extension, regional revenue. According to RRI, Koster said the provincial government is preparing scenarios and preventive measures to anticipate external disruptions to connectivity and mobility. These remarks come as Bali continues to rely heavily on tourism income while seeking to reduce vulnerability to shocks.

Broader economic and spending priorities

Koster’s comments on revenue oversight were framed within a broader push to strengthen Bali’s economic structure. RRI’s coverage notes that the provincial government aims to bolster sectors such as agriculture, fisheries, industry, trade, micro, small and medium enterprises (MSMEs), digitalisation, connectivity and tourism to improve regional resilience.

Budget changes under discussion in the 2026 amendment include a planned increase in regional income and spending. An earlier DPRD session in early September heard the governor explain that regional income is projected to rise from more than Rp6.5 trillion to over Rp6.6 trillion, with locally generated revenue (Pendapatan Asli Daerah, PAD) climbing from more than Rp4.2 trillion to above Rp4.3 trillion.

Retribution income is set to increase from around Rp614 billion to Rp649 billion, while total regional spending would grow from about Rp7.2 trillion to Rp7.5 trillion.

Koster has said that higher expenditure in the amended 2026 budget should be directed to productive priority programmes, including basic infrastructure such as roads, sidewalks and markets, as well as education, health services and preparations for a provincial hospital. He has also emphasised that efficiency should be understood as achieving maximum public benefit from every rupiah spent, rather than simply cutting costs.

Legislative factions have urged the administration to accelerate priority projects while maintaining construction quality, and to ensure that increased budget allocations translate into tangible benefits across Bali’s districts and municipalities. The governor’s latest pledge to tighten revenue management and oversight positions the foreign tourist levy and other local receipts as central to funding these development goals.

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