Casinos are often a major draw for tourists in many countries, offering entertainment and high-stakes gaming. However, in Indonesia, the situation is different. Despite the popularity of casinos in neighboring nations like Singapore and Malaysia, Indonesia currently has no casinos. This gap has led some Indonesian entrepreneurs, particularly those from the Young Indonesian Entrepreneurs Association (HIPMI), to propose the establishment of an international casino in Bali to boost local revenue. But how has the government responded to this bold suggestion?
The Ministry of Tourism and Creative Economy (Kemenparekraf) has firmly dismissed the idea of introducing an international casino in Bali. Minister Sandiaga Uno made this clear during a media briefing titled “The Weekly Brief with Sandi Uno” on Monday, August 5, 2024.
“Let me make it unequivocally clear, there are no plans to build a casino. We have no such plans,” he said, as reported by CNBC Indonesia.
Nia Niscaya, a senior expert at Kemenparekraf, echoed this stance, underlining that the construction of casinos is strictly prohibited by Indonesian law.
“Indonesia does not tolerate casinos at all. Unlike our neighbors, Singapore and Malaysia, which have casinos as part of their tourism strategy, Indonesia is governed by the rule of law, and such establishments are not permissible,” Nia explained.
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The push for a casino in Bali came from Agung Bagus Pratiksa Linggih, Chairman of the Bali branch of HIPMI. He argued that a casino could substantially increase Bali’s local revenue (PAD), which currently stands at around Rp4 trillion per year. Citing Singapore’s success with casino revenue, Bagus Pratiksa proposed that a similar establishment could boost Bali’s PAD to Rp12-13 trillion annually.
“Currently, Bali’s PAD is around Rp4 trillion, and we face various challenges, including waste management, which costs about Rp3 trillion annually,” Bagus Pratiksa said, as reported by CNN Indonesia.
He also highlighted the additional economic benefits a casino could bring, including increased revenue from surrounding hotels, restaurants, and other businesses, as well as taxes from casino employees.
Despite the potential advantages, he acknowledges that casino construction in Bali is not yet feasible. Bagus Pratiksa remains hopeful that if a casino were to be approved, it could be located in specific zones like the Injourney Tourism Development Corporation (ITDC) to ensure equitable economic development.
He also suggested that regulations could be implemented to restrict local residents from gambling, a measure that could help mitigate negative impacts and promote fair economic distribution.
“It may be necessary to prohibit local residents from gambling at the casino, similar to how Malaysia handles this issue. This approach would keep the focus on attracting international tourists while ensuring balanced economic growth,” he proposed.
