Free Expansion as Revenue Climbs

Indonesia's State Audit Agency (BPK) has advised the government to carefully review plans to reinstate visa-free entry for more countries. The agency noted that suspending the policy actually increased non-tax revenue while tourist arrivals continued to grow.
Why it matters
This highlights the tension between promoting tourism and maintaining national security and state revenue, a common policy dilemma for emerging economies.
August 7, 2026 | 11:24 am SHARE URL berhasil di salin. Foreigners visit the Kertha Gosa park in Bali on May 1, 2026. (Antara Photo/Nyoman Hendra Wibowo) Jakarta. Indonesia should thoroughly review plans to expand visa-free entry, the State Audit Agency (BPK) said, noting that suspending the policy boosted immigration non-tax revenue to Rp 7.61 trillion ($424.95 million) in 2023 even as foreign tourist arrivals continued to rise.
BPK said the government should carefully assess any plan to broadly reinstate visa-free entry by weighing economic benefits, reciprocity, national security, and immigration risks before extending the facility to more countries.
The recommendation was delivered during the handover of BPK's audit report on the 2025 financial statements of the Immigration and Corrections Ministry.
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