The Bali tourist tax will kick in next month with a fee of IDR150,000 (around $11).
It takes effect from February 14.
The funds raised will go toward conservation and environmental improvements across the island which attracts around six million visitors annually.
It will also be used to improve tourist services and safety initiatives.
The Bali tourist tax can be paid on the LOVE BALI website, or a new mobile app which is being launched soon.
Cashless payments can also be processed at the two main access points at Denpasar Airport and Benoa Bali Harbour.
Holidaymakers from outside the ASEAN region also pay a visa on arrival fee which is still applicable although Indonesia is mulling scrapping this.
“We will use the tax for the environment, culture and build higher quality infrastructure,” Bali Governor Wayan Koster said.
