Authorities confirmed the danger is now essentially over after the volcano erupted for the first time in half a century last month.
Finance Minister Sri Mulyani invited businesspeople and tourists to celebrate New Year’s Eve in Bali now that Mount Agung is no longer a threat.
She said: “For those of you who changed your year-end vacation plans due to Mt Agung, I encourage you to come to Bali. I have a guarantee that Bali is safe now.
“I hope participants of the Investor Gathering will celebrate their vacations in Bali or other nearby destinations and spend New Year there.”
She also cited a guarantee given by the National Disaster Management Agency (BNPB), saying an eruption would affect a limited area of the resort island.
The Volcanology and Geological Disaster Mitigation Center (PVMBG) also said the high alert level only exclusion.
And the centre added they wanted to make this clear to the public that the alert status should not be interpreted as Bali as a whole being on the “danger” watch.
Flights to Bali have declined by about 30 per cent as a result of the heightened volcanic activity in November, according to the Indonesian National Aviation Association (Inaca).
The association estimates the trend to continue into early next year, as the volcano and its surrounding area remain under a high alert status.
The Tourism Ministry also said that it would unlikely achieve its target of seeing 15 million tourist arrivals by the end of the year.
Spokesman Sutopo Purwo Nugroho assured that popular tourist areas, such as Tanah Lot, Sanur, Pandawa Beach, Batur Mount, Ubud, Kuta Beach, Padang-Padang Beach, Lovina Beach, Dreamland Beach, and Nusa Dua Beach, would not be affected by an eruption.
And he tweeted this week: “Mount Agung greets us from the Pura Lempuyang. White smoke was still coming out of the crater. Status still Beware. But Bali is safe. The airport is operating normally. “