Asita chairman Asnawi Bahar told The Jakarta Post that it had reported the matter to the Tourism Ministry as well as the Chinese Consulate General in Denpasar, Bali. "Asita does not reject nor oppose digital technology or the online package sales system. What we oppose are the illegal activities, [including those] conducted by foreigners," he said in Mataram, West Nusa Tenggara (NTB), on Wednesday.

Indications of foreign online travel agents who operate without permits have reportedly been noticed since last year. "We have found many of them in Bali; [mostly] Chinese citizens who arrived in Indonesia as tourists and later offered online ticketing services, tourism packages and arranged travel trips from China to Indonesia at a very low price," said Asnawi. "These practices will harm not only local tourism players but also the state since they don't pay taxes. It also against the law, including immigration, labor and trade."

(Read also: More holidaymakers attracted to authentic local culture: Travel agents)

The illegal practice has taken around 10 percent of the tourism visit market, he said.

Meanwhile, the ministry's destination development deputy Dadang Rizky Rahman said their authorities were concerning registration, not permits. "The ministry does not take part in permit matters. In terms of domestic investment plan [PMDN] and foreign investment [PMA], they are handled by the Investment Coordinating Board [BKPM]. But we will look into this," said Dadang. (kes)

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