Faisal Maliki Baskoro, Jakarta – Indonesia risks losing tourists to competing destinations if it doubles the fee for visitors obtaining a Visa on Arrival, the country's tour and travel industry has warned, as immigration authorities propose raising the cost to as much as Rp1 million ($56).
Budijanto Ardiansjah, deputy chairman of the Association of Indonesian Tour and Travel Agencies (Asita), said the proposed increase could undermine Indonesia's competitiveness, particularly as neighboring Southeast Asian countries attract far more international visitors.
"Every increase will have an impact, depending on how large it is. A 100% increase could give other countries an opportunity to attract tourists who might otherwise come to Indonesia," Budijanto said.
During the first half of 2026, Malaysia led ASEAN in international tourism with 21.12 million arrivals, followed by Thailand with roughly 17.36 to 18.5 million visitors, Vietnam with 12.3 million, and Indonesia recording 7.45 million foreign arrivals
He also questioned whether the government had conducted a sufficiently comprehensive feasibility study and whether higher visa fees would be accompanied by improvements in immigration services.
The Immigration Directorate General has proposed raising the current Rp500,000 Visa on Arrival fee to Rp750,000 for travelers who apply for an electronic Visa on Arrival (e-VoA) before traveling and Rp1 million for those who apply upon arrival.
Director General of Immigration Hendarsam Marantoko said the current fee was too low given fluctuations in the rupiah exchange rate and the costs of administering the visa.
"Our Visa on Arrival is currently only Rp500,000. Given the fluctuations in our exchange rate, we feel this is too low and therefore needs to be adjusted," Hendarsam said at a press briefing in South Jakarta on Wednesday.
The proposed structure is designed both to increase state revenue and encourage travelers to complete immigration procedures before departure, Hendarsam said.
"If they apply for the VoA online from their home country, they pay Rp750,000. If they apply for it at the arrival location, they pay Rp1 million," he said.
Immigration authorities hope greater use of the online system will reduce queues and congestion at airports by allowing travelers to complete the process before reaching immigration counters.
Immigration authorities have not yet announced when the new tariffs would take effect. The proposal must go through the relevant government approval process before becoming effective.