Indonesia's State Audit Agency (BPK) has recommended a thorough review of plans to expand visa-free entry, citing that suspending the policy contributed to a rise in immigration non-tax revenue to Rp 7.61 trillion (approximately $424.95 million) in 2023, according to a recent report.
The BPK's recommendation comes as the government considers broadening visa-free access to boost tourism, which was severely impacted by the COVID-19 pandemic. However, the agency warns that the potential loss of revenue from visa fees must be weighed against the economic benefits of increased tourist arrivals.
In 2023, Indonesia suspended visa-free entry for several countries, which led to a significant increase in immigration revenue. The BPK report suggests that any future expansion should be based on comprehensive data analysis, including tourist spending patterns and the impact on local economies.
The government has not yet responded to the BPK's recommendation, but tourism officials have previously expressed support for expanding visa-free entry to attract more visitors, particularly from key markets like China and Australia.
