Jakarta. Indonesia’s tourism industry players have voiced frustration following the removal of the Indonesia Tourism Industry Association (GIPI), the country’s umbrella organization for tourism associations, from the newly revised Tourism Law, passed by the House of Representatives (DPR) on October 2, 2025.

GIPI chairman Hariyadi Sukamdani said the group was “deeply disappointed” with Commission VII of the DPR for eliminating the national body from the Tourism Law without prior discussion.

“We are very disappointed with the DPR, especially Commission VII. In three meetings and one special session with GIPI and the commission, there was never any talk about removing GIPI from the law,” Hariyadi said in a press conference on Sunday.

He noted that GIPI was established in 2012 as mandated by the 2009 tourism law, serving as a unifying platform for tourism industry associations nationwide. “GIPI has played an active role in supporting the government’s tourism development efforts,” he added.

However, with its removal from the legal framework, GIPI now lacks any formal recognition. Hariyadi said the association would send a letter to President Prabowo Subianto, urging him to review the issue.

“This feels like a massacre; we were erased without any dialogue,” he said.

Tourism Industry “Pushed Aside”
Hariyadi argued that the revision reflects a diminishing role for the tourism sector, as the term “tourism industry” appears only twice in the new law, compared to 18 times in the previous law.

He also expressed concern that tourism continues to be underprioritized in national development. “Since the Republic was founded, tourism has never really been a main program for any administration,” he said.

Limited authority and budget allocation have constrained the sector’s growth compared to neighboring countries, he added.

Funding Gaps and BLU Proposal
To address chronic underfunding, GIPI has long proposed the creation of a Tourism Public Service Agency (BLU Pariwisata), financed partly through levies on foreign visitors. The plan aims to ensure that tourism taxes, such as hotel, restaurant, and entertainment taxes, are reinvested in the sector.

Currently, those taxes are collected by regional governments under the law on fiscal relations between the central and regional governments introduced in 2022, but only a fraction is allocated for tourism development.

“Only Jakarta and Bali provide significant reinvestment into tourism,” Hariyadi said. “Other regions rarely channel tax revenues back to the industry.”

While Article 57A of the revised Tourism Law adopts GIPI’s earlier proposal for a levy on foreign tourists, Hariyadi warned the provision could sideline industry players. “In practice, tourism-related levies collected by the government have rarely been reinvested to develop markets or products,” he said, expressing concern that the new scheme may not benefit the sector as intended.

Government Defends Revision
In response, Tourism Minister Widiyanti Putri Wardhana defended the revision, saying it reflects a broader and more modern approach to the industry.

“The third amendment to the Tourism Law responds to a paradigm shift toward a more holistic and integrated tourism ecosystem,” she said.

Widiyanti said the updated law emphasizes human resource development, community empowerment, and technology-driven destination management. It also strengthens event-based tourism and local initiatives such as village and cultural tourism.

“Tourism is dynamic and constantly evolving. The law must be able to adapt to global challenges and strengthen its role as a key driver of the national economy,” she added.

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