Tourism Law 2025 Sets Fiscal and Non‑Fiscal Incentives

JAKARTA, December 12, 2025 – President Prabowo Subianto signed Tourism Law No 18/2025, the third amendment to the Tourism Law, after the House of Representatives approved the bill on October 2, 2025. The law took effect upon the president’s signature.

Inserted Article 17A outlines fiscal incentives, which are tax or financing measures that lower operational costs, and non‑fiscal incentives, such as simplified licensing, easier immigration procedures, and provision of supporting infrastructure. Both incentives are granted in accordance with existing regulations. The measures aim to foster a high‑quality, sustainable tourism sector.

These incentives are expected to reduce investment and operating expenses for tourism businesses and accelerate licensing processes. The resulting benefits could enhance the competitiveness of Indonesia’s tourism industry internationally.