Bali’s governor I Made Mangku Pastika has said he is jealous of Malaysia because of their success in attracting tourists to their country.
Bali is only one island in the whole of Indonesia, so 2 million visitors to Bali is a pretty good effort in my opinion. Malaysia had 22 million tourists in 2008. I think that Bali is now at a point where any more tourists visiting the island are going to have a negative impact on the island’s environment.
Some of the things I enjoy about traveling to Malaysia, compared with Indonesia are the free three month visas you get on arrival, buying duty-free alcohol in Lang Kawi and the pretty good public transport system they have.
My suggestions to improve tourism would include getting rid of the fees you have to pay for visas, allow longer stays, so people might travel further outside of Bali and reduce the high import taxes on alcohol.