COMPARATIVE STUDY OF TOURISM POLICY ARRANGEMENTS OF BALI OF THE INDONESIA, AND PROVINCES OF THE MALAYSIA IN PROVIDING LEGAL PROTECTION...

RJOAS February 2025

by Poetra Rizal Akbar Maya, Nurjaya I Nyoman, Koeswahyono Imam, Permadi Iwan (Faculty of Law, University of Brawijaya, Malang, Indonesia)

This study aims to conduct a comparative study related to tourism policy arrangements in the provinces of Bali, Indonesia, and Malaysia, with a focus on legal protection for local tourists. This study explores the differences and similarities in the regulatory framework implemented by the two countries in the tourism industry, especially in the aspect of protecting the rights of tourists. Through the use of normative research methods and legislative approaches, this study examines various policies, laws, and regulations that govern the tourism sector, as well as analyzes the government's efforts to ensure the safety, comfort, and rights of local tourists are guaranteed. In providing legal protection for local tourists, Bali seeks to strengthen the existence of indigenous peoples in tourism development, while Malaysia issues policies through the development of "Halal Tourism". The results of this study are expected to provide insight into the effectiveness of tourism policies and the role of the government in providing optimal legal protection in both countries, as well as provide recommendations for future policy improvements.

Tourism is a major economic sector worldwide, with significant impact on economies, including those of Indonesia and Malaysia. This sector makes a substantial contribution to the nation's income, job creation, and infrastructure development (Yakup, 2019). In Indonesia, Bali is known as a global tourism icon (Somantri, 2011), while Malaysia also has various excellent destinations such as Kuala Lumpur, Langkawi, and Penang that attract millions of tourists every year (Mabrruroh, 2020). As one of the economic drivers, the governments of both countries have an interest in maintaining the sustainability and development of this sector. Behind the significance of the part of the tourism division, there is a big challenge that often goes unnoticed, namely legal protection for tourists, especially local tourists. Legal protection covers various aspects, such as tourist safety, consumer protection, information rights, and complaint mechanisms in case of violations. In many tourist destinations, including Bali and Malaysia, the issue of legal protection is often an issue that has not been completely resolved.

In the two countries mentioned above, law enforcement in the tourism sector is a challenge in itself. Many policies and regulations are issued by the government, but their implementation is often weak. As is the case in Bali, the lack of supervision of service quality is also a problem, where local tourists often get lower facilities than foreign tourists. This example can be seen in accommodation services, restaurants, or tourist activities that provide better treatment to foreign tourists than local tourists, especially in terms of facilities and services. This creates injustice and dissatisfaction among local tourists, who should also be entitled to the same protection rights (Tarubali PUPRKIM Prov. Bali MaSIKIAN, 2024). In Malaysia, despite strong regulations, there are still obstacles in its implementation in the field. As is known that as a country that has international tourism, Malaysia is visited by many foreign tourists with ingredients from various foreign tourists, so there are a lot of culinary businesses that are developing and worried about the halalness of the culinary, while Malaysia is a Muslim country where halal status is very important (Haryanti, 2020).

Sustainable tourism is not only about the environment, but also involves social and legal aspects. Legitimate security for neighborhood sightseers is portion of endeavors to preserve the maintainability of the tourism industry so that it can continue to develop well in the future. If tourists feel unprotected, this can have an impact on the image of the destination and reduce interest in traveling. While international tourists are often the main focus of tourism policy, local tourists also play an important role in sustaining the industry, especially during the pandemic when the number of international tourists is declining. Therefore, local and national governments need to pay more attention to protect local tourists, in addition to promoting, also for legal protection.

The legal systems in Indonesia and Malaysia have fundamental differences that affect the way tourism policies are regulated and legal protection. Indonesia with a civil law-based legal system, while Malaysia as a former British colony, Malaysia still maintains the United Kingdom's customary legal tradition (Common Law System) (Syaefudin et al., 2021). This difference creates variations in the regulations and legal protection mechanisms implemented in both countries. A comparative study between the Provinces of Bali, Indonesia and Malaysia in the context of legal protection for local tourists is important to understand the differences in policies and legal approaches applied by the two countries. Although Indonesia and Malaysia are both committed to developing the tourism sector, the policy approaches implemented can differ significantly. These differences can affect how well local tourists are protected during the trip of the two countries. From the results of this study, it is hoped that new policy recommendations that are more effective in protecting local tourists can be found, both in the provinces of Bali, Indonesia and Malaysia, they need to continue to update their policies to be in line with the development of the global tourism industry and the increasingly complex needs of local tourists.

Legal research is the process of finding the truth about a legal issue that occurs using legal research methods, legal systems, and consistency (Angkasa et al., 2019). In other words, legal research is an analytical process that uses techniques, systematics, and special thinking to study certain legal phenomena and then try to solve the problems that arise (Purwati, 2020). Therefore, the right research method is needed to help the research process in accordance with the formulation of the problem to be studied and the goals that have been set and achieved.

This research is included in the type of normative legal research because it is centered on applicable laws and regulations and is relevant to the research subject (Benuf & Azhar, 2020). This research focuses on how the tourism policies of Bali Province in Indonesia and Malaysia provide legal protection to local tourists. Because of the type of approach, this study uses a legislative approach. In accordance with Article 7 paragraph (1) of Law of the Republic of Indonesia Number 12 of 2011 concerning the Establishment of Laws and Regulations, the legislative approach is an approach related to laws and regulations (Marzuki, 2017). This method is centered on written legal investigations related to tourism policy in Indonesia and Malaysia. In this study, laws, government regulations, and local policies governing the tourism sector as well as regulations that provide legal protection to local tourists will be studied. This research will study Malaysia's federal tourism laws, such as the Tourism Industry Act 1992 and the development of "Halal Tourism", as well as the local regulations of the Province of Bali.

To collect data for this study, researchers used literature studies, or literature studies, i.e. reading, studying, and analyzing journals, books, articles, and other sources relevant to the research topic. In addition, researchers use supporting tools such as electronic documents, photographs, and drawings to help them write (Ansori, 2019). Other libraries, such as books, journals, articles, legislation, and proceedings, are the source of data for this research.

The authors use critical analysis methods to analyze the data to ensure accuracy and correctness. The critical analysis approach emphasizes that when researchers conduct research, they are not always objective. The views or principles held by researchers are often the basis of critical analysis. Therefore, the way researchers see problems affects the way text or data is interpreted. In this study, the critical analysis technique aims to assess and evaluate in depth the regulations and policies that apply in the two regions and their impact on legal protection for local tourists. With this critical analysis technique, the research will be able to provide a comprehensive and objective picture of tourism policies and legal protection in the Provinces of Bali and Malaysia, as well as how they can be improved to better protect local tourists.

Both the existing infrastructure and facilities are very important for tourism growth. To maintain the sustainability of tourism, community participation is essential, including protecting the environment and helping local communities. For sustainable tourism, local communities must play the role of receiving tourists to preserve culture, traditions, and agriculture. In addition, the picking system itself is used by local farmers to provide fruits and vegetables. This is considered to be able to provide new jobs for the community. Tourist destinations allow for the introduction of the country's cultural diversity, such as traditional arts, traditional ceremonies, and religious rituals that appeal to local and international tourists, and the rapid growth of the tourism industry allows for intercultural interaction through tourist visits, which provides opportunities for tourists to understand and appreciate the local culture and background (Sugiyarto & Amaruli, 2018).

Marine and cultural tourism, including local wisdom, which is the core of the existing cultural diversity, is considered to have the greatest potential and should be a priority for its development (Tamaratika & Rosyidie, 2017). However, local wisdom is still not an important part of Indonesia's tourism. The development of the tourism industry usually focuses on economic growth, which often results in unfavorable consequences, namely unsustainable tourism. The importance of sustainable tourism is outlined in Law of the Republic of Indonesia Number 10 of 2009 concerning Tourism. The tourism sector, according to Article 14 of Law of the Republic of Indonesia Number 10 of 2009 concerning Tourism, includes various activities such as tourist destinations, tourist areas, transportation, travel, food and beverage services, accommodation, meetings, incentive trips, conferences, and exhibitions, information, consultants, tour guides, water tourism, and spas. The tourism industry involves a variety of different parts, including travel agents, tour guides, tour operators, accommodations, restaurants, souvenir shops, currency exchange, transportation, and more, and includes the traveler's journey from the place of origin to the destination and back to the place of origin. Additionally, tourism offers a wide range of products and experiences, including natural, cultural, historical, artificial, and experiences that appeal to individuals.

People, especially in tourism destinations, are greatly influenced by tourism. Because tourism is considered a strategic sector that has the potential to improve the regional economy, the main focus in the local government's development planning program is its development. In this regard, national tourism development policies must consider environmental conservation, economic progress, and socio-cultural interests in a balanced manner. This is because communities, customary law, and their culture are important components of national cultural heritage identity that must be protected. As a result, sustainable tourism must consider local cultural values, especially local wisdom, which is part of its society. The following can be described below the tourism policy arrangements in Indonesia, especially in the Province of Bali Indonesia which will also be compared with the tourism policy arrangements in Malaysia.

The island of Bali in Indonesia is famous for its green volcanoes, rice terraces, beaches, and beautiful coral reefs. Religious attractions such as the cliff-top Uluwatu Temple and the coastal town of Kuta, which is famous for its bustling nightlife, attract many visitors. In addition, Seminyak, Sanur, and Nusa Dua are famous places for their popular resorts. Bali is a popular place for yoga and meditation, which offers relaxation for visitors. Bali is an island that has many tourist attractions that have their own attractions and uniqueness. In addition, there are many vacation activities to choose from to meet the needs of tourists with different interests. As a result, Bali has become one of the most preferred tourist attractions in Indonesia (Adnyani, 2021)

Bali's tourism sector has not yet achieved the justice and sustainability necessary for the growth of national tourism based on the cultural heritage and traditions of the Balinese people and customary law. In Bali, the influence of globalization has been felt for a long time before other Indonesian people experienced a similar phenomenon. The development of the tourism sector, which has been going on for many years, was one of the early causes of globalization in the region (Kartika, 2019). This condition reflects differences in various aspects, including in the fields of work, profession, education, and interests. The diversity of society is also reflected in the emergence of various groups and new social relationships that arise in response to the dynamics of modern life. Community involvement should start from the early stages of planning, setting plan objectives, determining policies, and up to the implementation stage. By involving the community comprehensively, which means treating the community as a subject rather than an object, efforts to preserve tourist destinations will be more effective, and supervision can be carried out with the community, so that the system can function properly. The relationship between tourism and culture is an opportunity and a challenge for traditional villages and the Balinese people. The hope is that tourism can grow by taking advantage of cultural wealth, while traditional villages, acting as cultural custodians, can take advantage of this economic opportunity for their residents.

The attraction of Balinese culture has made Bali a tourist destination with an international reputation. Therefore, culture must be the main component of Bali's tourism development. However, according to Suksma Prijandhini Devi's research, the culture of the Balinese customary law community mainly functions as a source of foreign income for local and national economic growth (Prijandhini Devi Salain, 2017), but the Balinese people are relatively unable to enjoy these economic benefits optimally for the welfare of the local community. This is because the conditions that have been developing in Bali show how culture is one of the important assets in the implementation of tourism service businesses, but what is prioritized is the interest of national economic growth.

The following are the tourism policy arrangements in the Province of Bali Indonesia:

• Law of the Republic of Indonesia Number 15 of 2023 concerning the Province of Bali;
• Government Regulation of the Republic of Indonesia Number 50 of 2011 concerning the National Tourism Development Master Plan for 2010-2025;
• Bali Provincial Regulation Number 9 of 2012 concerning Subak;
• Bali Provincial Regulation Number 4 of 2019 concerning Bali Traditional Villages;
• Bali Provincial Regulation Number 1 of 2020 concerning Tourist Contribution to the Protection of Bali's Natural and Cultural Environment;
• Bali Provincial Regulation Number 5 of 2020 concerning Standards for the Implementation of Bali Cultural Tourism;
• Decree of the Regional House of Representatives of Bali Province Number 1 of 2020 concerning the Establishment and Composition of the Joint Membership of the Discussion Commission of the Draft Regional Regulations of the Province of Bali concerning the Standards for the Implementation of Bali Tourism;
• Governor of Bali Regulation Number 27 of 2020 concerning Acceptance of Tourist Contributions for the Protection of Bali's Natural and Cultural Environment;
• Bali Governor Regulation Number 28 of 2020 concerning Bali Tourism Governance;
• Bali Governor Regulation Number 29 of 2020 concerning the Establishment of Balinese Local Plants as Banten Gumi Park, Puspa Dewata, Usada, and Greening;
• Governor of Bali Regulation Number 52 of 2021 concerning Implementation Regulations of Regional Regulation Number 5 of 2020 concerning Standards for the Implementation of Bali Cultural Tourism;
• Governor of Bali Regulation Number 64 of 2022 concerning the Implementation of Balinese Cultural Digital Tourism;
• Joint Agreement Between the Indonesia Chamber of Commerce and Industry and the Bali Provincial Government Number MOU/245/DP/XII/2021 NUMBER: 075/20/KB/B.PEM. KESRA/XII/2021 of 2021 concerning Disaster Management Cooperation in the Tourism Sector;
• Instruction of the Governor of Bali Number 8324 of 2021 concerning the Implementation of Source-Based Waste Management in Villages/Kelu.

Based on some of the arrangements mentioned above, it shows that in the Province of Bali, Indonesia, many tourism-related policies have been issued that aim to regulate and develop the regional tourism sector comprehensively. Bali, as a major tourist destination in Indonesia, has issued several policies to encourage the growth of the tourism industry, maintain its cultural wealth, and protect the environment and local communities. The most important policy is Law Number 10 of 2009 concerning Tourism, which provides a legal framework for the development of the tourism industry throughout Indonesia, including Bali. This law establishes the basic principles of tourism development, destination management, and the protection of the rights of tourists and local communities.

At the provincial level, Bali also issues specific policies such as Regional Regulations (Perda) on Tourism that govern the governance and management of tourism in the region. This Regional Regulation covers various aspects, ranging from regulating tourism business licenses, standardizing services, to managing the environmental impact of tourism activities. The purpose of this policy is to ensure that tourism growth is in line with local needs and characteristics and to ensure that the community is involved in the decision-making process. In addition, the Regional Tourism Development Master Plan (RIPDA), which also includes Bali, regulates sustainable tourism growth. RIPDA includes long-term plans regarding infrastructure development, destination promotion, cultural conservation, and social and environmental impact management (Setiyono, 2022). The purpose of this policy is to ensure the preservation of natural resources, tourism growth, and the preservation of local culture. Other policies, such as the Tourism Village Program, aim to empower local communities by encouraging the development of villages as tourist destinations. The program not only promotes the uniqueness of local culture and traditions but also provides direct economic benefits to the village community through the provision of tourism services, handicrafts, and local products.

Until the 1970s, tourism was not the main focus of the Malaysia government. The Tourism Development Corporation of Malaysia (TDC) was established in 1972 with the aim of boosting Malaysia's tourism industry. Despite this, tourism was still not a priority for Malaysia at the time. As a result, Malaysia, which was previously not well-known as a tourist destination, lags behind while neighboring countries such as Singapore, Thailand, and Indonesia begin to build a reputation. As a result, Malaysia, which was previously less known as a tourist destination, lags behind while neighboring countries such as Singapore, Thailand, and Indonesia begin to build a reputation as a tourist destination. However, in the 1980s, Malaysia's tourism sector grew rapidly and developed into an industry worthy of reckoning and starting to be prioritized. Investment in the development of new facilities and capital accumulation amounted to about $350 million USD per year, which reflected 7.3% of the total investment in Malaysia at that time. Around 6.5% of the population works in the tourism sector. This rapid growth is due to several factors, including increased income and individual needs for leisure time, improvements in the international transportation system, increasing public awareness of tourist destinations, as well as effective promotion of the tourism sector (Indonesia, 2009).

Tourism policy in Malaysia is further regulated in the "Tourism Industry Act 1992". The Tourism Industry Act 1992 in Malaysia is a law that regulates the tourism industry, aiming to supervise and regulate tourism activities in the country. Some of the main contents of this regulation include:

• Tourism Business Registration and License: All companies engaged in tourism, such as travel agents and tour operators, are required to register and obtain an official license from the tourism authority of Malaysia. It aims to ensure that the services provided to tourists are in accordance with the standards that have been set;
• Setting Service Standards: This law establishes minimum standards of service that tourism industry players must adhere to, including safety, comfort, and consumer protection;
• Sanctions and Supervision: The Tourism Industry Act 1992 authorizes authorities to supervise, inspect, and sanction violations of the law committed by tourism industry players, including revocation of licenses or fines;
• Consumer Protection: The law also provides protection to travelers, by ensuring that they receive services that comply with applicable legal agreements and standards.

With the Tourism Industry Act 1992 and the Malaysia Tourism Promotion Board Act 1992, Malaysia's tourism sector is essential to maintain the integrity, quality, and sustainability of Malaysia's tourism industry and protect the rights of tourists. The newly formed Ministry of Culture, Arts and Tourism has the responsibility to develop and implement policies, licensing, and implementation of all parts of Malaysia's tourism industry.

Malaysia has become a country with its own charm. In addition to being a place to work for hundreds of thousands of workers from Indonesia, Malaysia is also a tourist destination visited by thousands to millions of tourists from all over the world. The country has grown to become one of Asia's most modern cities, supported by the brand image of "Malaysia: Truly Asia," which promotes Malaysia as an ideal place to witness, feel, and interact with Asian culture. Thanks to its modernity and brand image, Malaysia managed to become one of the favorite tourist destinations according to the magazine "Global Traveller 2006" and ranked third as the favorite destination of Indonesia tourists according to a METRO10 survey broadcast on METRO TV on April 14, 2008 (Indonesia, 2009).

Halal tourism, which is considered to have boosted Malaysia's economy, is now a new idea. The increase in Muslim tourist income, the development of tourism infrastructure, and the creation of new jobs indicate the growth of this industry. These results show how important the development of halal tourism is to support economic growth in countries oriented towards Maqashid Sharia (Mustaqim, 2023). Halal tourism refers to the tourism sector that offers facilities that meet the basic needs of Muslim visitors in accordance with Islamic law, such as places of worship, halal food and beverages, and other facilities that are adjusted to sharia rules in tourist destinations.

In terms of legal protection for local tourists, this discussion will not be separated from the discussion of local wisdom. Local wisdom is broad and covers many things. It is very difficult to categorize it in one space because of the diverse and scattered local wisdom around the world. Today's local wisdom is different from traditional local wisdom because local wisdom does not always have to come from the heritage of previous generations and emphasizes more on certain contexts and locations. This is the main difference between the two. Interaction with the natural environment, society, and other cultures can foster local wisdom in a community.

Local wisdom is the perspective, knowledge, and way of life used by local people to overcome various difficulties to meet their needs. Etymologically, the term "local wisdom" consists of two words: "wisdom" and "local". According to the Great Dictionary of the Indonesian Language, "wisdom" refers to the wisdom and intelligence required in interaction, and "local" refers to a particular place or region that may have different characteristics from other places (Njatrijani, 2018). Local wisdom is a component related to people's cultural habits, which can be seen in the physical structure of buildings (architecture) and the spatial layout of the territory in a country in the geographical context (Habibi & Kusdarini, 2020). As a result, local wisdom is not uniform among different ethnic groups in different places and times. This variation is due to differences in natural difficulties and the needs of life, which results in various systems of knowledge related to the environment and its social aspects.

In the context of tourism, local wisdom is expected to provide protection and special attention to local tourists. A local tourist or also commonly called a domestic tourist is someone who travels within the borders of their own country without crossing their borders (Suharto, 2020). Both foreign tourists and local tourists, have tourist attractions, usually more cultural tourism (Kristiana & Liana, 2019). Thus, local tourists and customary law communities play an important role in tourism. Thus, it is very necessary to analyze how to protect local communities in setting tourism policies.

As mentioned in the previous subchapter, the Regional Government of the Province of Bali stipulates regulations in Regional Regulations, as seen in (1) Regional Regulation of the Province of Bali Number 4 of 2019 concerning Balinese Customary Villages; (2) Bali Provincial Regulation Number 4 of 2020 concerning the Strengthening and Promotion of Balinese Culture; and (3) Bali Provincial Regulation Number 5 of 2020 concerning Bali Tourism Implementation Standards. This is as stated in Bali Provincial Regulation Number 4 of 2020 concerning the Strengthening and Advancement of Balinese Culture. This regulation does not take into account Law Number 10 of 2009 concerning Tourism and does not regulate the development of tourism as well as the protection of customary law communities and the preservation of the culture and wisdom of the Balinese people.

In the Province of Bali Indonesia, tourism policies tend to focus on industrial promotion and infrastructure development without placing legal protection for local tourists as a top priority. Despite regulations such as Law No. 10 of 2009 on Tourism, their implementation is often inconsistent, and enforcement of violations of local tourist rights is still weak. In fact, in the application of the concept of halal tourism which has also been implemented by Indonesia in various regions (Pratistawiningrat & Karmilah, 2024), has not been expressly carried out in the Province of Bali, Indonesia. As is known that the Province of Bali Indonesia is one of the tourism areas that are in great demand by foreign tourists or foreign tourists, so that many culinary delights in Bali actually follow the tastes and habits of type food in foreign countries which sometimes overrides the concept of halal for local tourists in the Province of Bali Indonesia.

In contrast, Malaysia is showing a more structured approach with clear and comprehensive policies in place to protect tourists, including local tourists. For example, the Tourism Industry Act 1992 and related regulations at the state level provide a strong legal foundation for consumer protection and industry supervision. Malaysia has adopted the concept of "Halal Tourism" as part of its tourism policy, which is designed to meet the needs of Muslim tourists and is in line with Islamic principles. This policy not only includes the provision of sharia-compliant facilities and services, but also reflects efforts to pay attention to the interests of local communities through inclusive economic development. With the "Halal Tourism" approach, Malaysia integrates religious aspects with tourism, while providing more direct economic benefits to the local community. This comparison shows that while Bali needs to increase its efforts to accommodate the interests of indigenous and local communities more effectively, Malaysia has successfully developed a tourism policy that explicitly considers the specific needs of tourists and supports the well-being of local communities through a model based on sharia principles.

Although both countries have made efforts to regulate the tourism sector, there is an urgent need to strengthen legal protections for local tourists in Bali by adopting best practices from Malaysia and adapting them to the local context. Similar steps can be implemented in Bali while still respecting the diversity of local cultures and traditions. This can be done without disturbing Bali's identity known for its Hindu culture, by providing halal facilities in certain areas or through hotels and restaurants that provide halal options for Muslim tourists.

In addition, halal tourism in Bali can support local economic development by creating new business opportunities in the provision of halal products and services. Small and medium-sized businesses can be involved in the supply chain of halal food, accommodation, and Muslim-friendly tourism services. Thus, in addition to increasing the number of tourists, this concept can also contribute to the welfare of the local community. Integrating halal tourism in Bali does not mean changing the entire existing tourism order, but rather providing more inclusive and diverse options for tourists with different cultural backgrounds and beliefs. With the growing growth potential of the halal tourism sector, Bali can take advantage of this opportunity to increase tourism revenue and strengthen its position as a friendly global tourist destination for all local tourists, including Muslim tourists.

The conclusion of the results of this study shows that tourism policy regulation in Bali Province still needs to be improved to achieve a balance between economic growth and cultural and environmental preservation. Although Bali has implemented various regulations, such as Laws, Regional Regulations, and Governor's Regulations that aim to protect cultural and environmental wealth and encourage local community participation, their implementation is often ineffective, especially in providing adequate protection for indigenous peoples and local tourists. Globalization and the rapidly growing tourism industry have caused Balinese indigenous peoples not always to enjoy optimal economic benefits, even though their culture is the main attraction for Balinese tourism. On the other hand, Malaysia has a more structured and inclusive tourism policy, especially in terms of protecting local tourists and developing an economy that pays attention to the local community. Policies such as the Tourism Industry Act 1992 and the concept of "halal tourism" show how Malaysia integrates the needs of tourists with sharia principles, providing better economic opportunities for the local community. This approach can be an inspiration for Bali to pay more attention to the interests of the local community in tourism development, while maintaining the existing cultural identity.

As a recommendation in this study, Bali needs to improve policies that are more in favor of indigenous peoples and involve them actively in tourism development. This can be done with clearer and stronger enforcement of local regulations to ensure that local communities receive fair economic benefits from the tourism industry. To provide friendly facilities and services for Muslim tourists, Bali can follow the Malaysia halal tourism model. This can create new economic opportunities for the local community, without putting aside Balinese Hindu cultural identity. This concept can also attract more domestic and international tourists who are looking for halal destinations.

Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-02/article_02.pdf