indonesia tourism economy

Travel, Tourism & Hospitality

Travel and tourism in Indonesia - statistics & facts

Indonesia as a global tourism destination, indonesian tourism: on the road to recovery, key insights.

Detailed statistics

Contribution of the tourism industry to GDP Indonesia 2016-2021

Number of international visitor arrivals Indonesia 2014-2023

Value of international tourism receipts Indonesia 2011-2020

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Number of foreign tourist arrivals to Bali, Indonesia 2008-2023

Average length of stay of inbound visitors to Indonesia 2012-2021

Related topics

Recommended.

• Accommodation in Indonesia
• Aviation industry in Indonesia
• Passenger transport in Indonesia
• Demographics of Indonesia
• Natural disasters in Indonesia

Recommended statistics

• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Premium Statistic International tourist arrivals worldwide 2019-2022, by subregion
• Basic Statistic Travel and tourism contribution share to GDP in Indonesia 2019-2021
• Basic Statistic Travel and tourism contribution to GDP in Indonesia 2019-2021
• Premium Statistic Absolute economic contribution of tourism in Indonesia 2014-2029

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

International tourist arrivals worldwide 2019-2022, by subregion

Number of international tourist arrivals worldwide from 2019 to 2022, by subregion (in millions)

Travel and tourism contribution share to GDP in Indonesia 2019-2021

Contribution of travel and tourism sector to GDP in Indonesia from 2019 to 2021

Travel and tourism contribution to GDP in Indonesia 2019-2021

Contribution of travel and tourism sector to GDP in Indonesia from 2019 to 2021 (in trillion Indonesian rupiah)

Absolute economic contribution of tourism in Indonesia 2014-2029

Absolute economic contribution of tourism in Indonesia from 2014 to 2029 (in million U.S. dollars)

Inbound tourism

• Premium Statistic Number of international visitor arrivals Indonesia 2014-2023
• Premium Statistic Number of international visitor arrivals from Asia Pacific to Indonesia 2014-2023
• Premium Statistic Number of international visitor arrivals Indonesia 2022, by mode of transport
• Premium Statistic Number of foreign visitor arrivals in Indonesia 2022, by port of entry
• Premium Statistic Monthly international air passengers at Soekarno-Hatta airport Indonesia 2019-2023
• Premium Statistic Average length of stay of inbound visitors to Indonesia 2012-2021

Number of international visitor arrivals in Indonesia from 2014 to 2023 (in millions)

Number of international visitor arrivals from Asia Pacific to Indonesia 2014-2023

Number of international visitor arrivals from Asia Pacific to Indonesia from 2014 to 2023 (in millions)

Number of international visitor arrivals Indonesia 2022, by mode of transport

Number of international visitor arrivals in Indonesia in 2022, by mode of transport (in 1,000s)

Number of foreign visitor arrivals in Indonesia 2022, by port of entry

Number of foreign visitor arrivals in Indonesia 2022, by main port of entries (in 1,000s)

Monthly international air passengers at Soekarno-Hatta airport Indonesia 2019-2023

Number of monthly international air passengers at Soekarno-Hatta Airport (CGK) in Indonesia from January 2019 to December 2023 (in 1,000s)

Average length of stay of inbound visitors to Indonesia from 2012 to 2021 (by number of days)

Domestic tourism

• Premium Statistic Number of domestic trips Indonesia 2013-2022
• Premium Statistic Number of domestic trips made in Indonesia 2021, by mode of transport
• Premium Statistic Breakdown of domestic trips in Indonesia 2021, by purpose
• Premium Statistic Monthly domestic air passengers at Soekarno-Hatta airport Indonesia 2019-2023
• Premium Statistic Number of domestic guests in star hotels Indonesia 2013-2022
• Premium Statistic Average length of stay in hotels by domestic travelers in Indonesia 2012-2021
• Premium Statistic Common concerns about traveling Indonesia 2023

Number of domestic trips Indonesia 2013-2022

Total number of domestic trips in Indonesia from 2013 to 2022 (in millions)

Number of domestic trips made in Indonesia 2021, by mode of transport

Number of domestic trips made in Indonesia in 2021, by mode of transport (in millions)

Breakdown of domestic trips in Indonesia 2021, by purpose

Number of domestic trips made in Indonesia in 2021, by purpose of travel (in millions)

Monthly domestic air passengers at Soekarno-Hatta airport Indonesia 2019-2023

Number of monthly domestic air passengers at Soekarno-Hatta Airport (CGK) in Indonesia from January 2019 to June 2023 (in millions)

Number of domestic guests in star hotels Indonesia 2013-2022

Total number of domestic guests in star hotels in Indonesia from 2013 to 2022 (in millions)

Average length of stay in hotels by domestic travelers in Indonesia 2012-2021

Average length of stay in hotels by domestic travelers in Indonesia from 2012 to 2021 (by number of nights)

Common concerns about traveling Indonesia 2023

Most common concerns about traveling among tourists in Indonesia as of January 2023

Economic impact

• Premium Statistic Average daily expenditure of inbound visitors to Indonesia 2012-2021
• Premium Statistic Inbound tourism expenditure value Indonesia 2013-2022
• Premium Statistic Value of international tourism receipts Indonesia 2011-2020
• Premium Statistic Number of employees in tourism industry Indonesia 2011-2020

Average daily expenditure of inbound visitors to Indonesia 2012-2021

Average daily expenditure of inbound visitors to Indonesia from 2012 to 2021 (in U.S. dollars)

Inbound tourism expenditure value Indonesia 2013-2022

Value of inbound tourism expenditure in Indonesia from 2013 to 2022 (in billion U.S. dollars)

International tourism receipts in Indonesia from 2011 to 2020 (in million U.S. dollars)

Number of employees in tourism industry Indonesia 2011-2020

Number of employees in the tourism industry in Indonesia from 2011 to 2020 (in 1,000s)

Accommodations, hotels, and bookings

• Premium Statistic Number of accommodation establishments for visitors Indonesia 2013-2022
• Premium Statistic Number of hotels and similar establishments Indonesia 2012-2021
• Premium Statistic Total number of hotels by star ratings Indonesia 2023
• Premium Statistic Number of employees in accommodation services for visitors Indonesia 2011-2020
• Premium Statistic Occupancy rate in classified hotels in Indonesia 2013-2022
• Premium Statistic Leading online travel agencies used in Indonesia 2023
• Premium Statistic Preferred accommodation booking methods for year-end holiday Indonesia 2022

Number of accommodation establishments for visitors Indonesia 2013-2022

Number of accommodation establishments for visitors in Indonesia from 2013 to 2022 (in 1,000s)

Number of hotels and similar establishments Indonesia 2012-2021

Number of hotels and similar establishments in Indonesia from 2012 to 2021 (in 1,000s)

Total number of hotels by star ratings Indonesia 2023

Total number of hotels in Indonesia in 2023, by star ratings

Number of employees in accommodation services for visitors Indonesia 2011-2020

Number of employees in hotels and similar establishments in Indonesia from 2011 to 2020 (in 1,000s)

Occupancy rate in classified hotels in Indonesia 2013-2022

Room occupancy rate of classified hotels in Indonesia from 2013 to 2022

Leading online travel agencies used in Indonesia 2023

Most popular online travel agencies among consumers in Indonesia as of June 2023

Preferred accommodation booking methods for year-end holiday Indonesia 2022

Most preferred accommodation booking methods for year-end holiday travel in Indonesia as of November 2022

Impact of COVID-19 on tourism

• Premium Statistic Quarterly change in international tourism receipts COVID-19 in Indonesia 2022
• Premium Statistic Monthly number of international visitor arrivals Indonesia 2020-2023
• Premium Statistic International tourism receipts during the COVID-19 pandemic in Indonesia Q4 2022
• Premium Statistic Monthly change in international tourist arrivals due to COVID-19 Indonesia 2020-2022

Quarterly change in international tourism receipts COVID-19 in Indonesia 2022

Quarterly change in international tourism receipts during the novel coronavirus (COVID-19) pandemic in Indonesia in 2022

Monthly number of international visitor arrivals Indonesia 2020-2023

Number of international visitor arrivals in Indonesia from January 2020 to March 2023 (in 1,000s)

International tourism receipts during the COVID-19 pandemic in Indonesia Q4 2022

International tourism receipts during the novel coronavirus (COVID-19) pandemic in Indonesia as of 4th quarter in 2022 (in thousand U.S. dollars)

Monthly change in international tourist arrivals due to COVID-19 Indonesia 2020-2022

Monthly change in international tourist arrivals during the novel coronavirus (COVID-19) pandemic in Indonesia as of December 2022

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Land investment, resort projects, villa designs, the company, sustainability, market studies, land ownership, news & press, indonesia's economic lift: 64.87% increase in tourists heralds brighter days.

Introduction to Indonesia's Tourism Boom

‍ The Indonesian tourism sector has emerged as a significant catalyst for the nation's economic resurgence in the post-pandemic era. Acting Head of Statistics Indonesia (BPS), Amalia Adaninggar Widyasanti, highlighted the sector's recovery, emphasizing its contribution to the broader economic landscape. With a strategic focus on revitalizing tourism, Indonesia has witnessed a commendable increase in both domestic and international tourists, signaling a robust return to its pre-pandemic vibrancy.

Read More: Jokowi Introduces New Property Tax Incentives to Boost Indonesian Economy

Influx of Domestic and International Travelers

‍ The third quarter of 2023 saw a remarkable 13.35 percent year-on-year increase in domestic tourists, a testament to the renewed confidence of Indonesians in exploring their own country. The surge in international visitors was even more striking, with a 64.87 percent jump from the previous year, nearing the bustling tourist activity of the pre-pandemic period. This influx is not just a number—it is a narrative of resilience and the global community's growing interest in Indonesia as a top travel destination.

Transportation: The Wheels of Tourism

‍ A thriving tourism industry is often mirrored by a booming transportation sector. Indonesia's transport avenues have seen substantial growth, with a 26.71 percent increase in rail passengers, an 11.12 percent rise in sea transport usage, and a significant 29.18 percent boost in air travel in 2023. These figures not only reflect the mobility of tourists but also signify the readiness and capacity of Indonesian transport infrastructure to accommodate and foster tourism growth.

Economic Boost from Global Events

‍ Significant events such as the 43rd ASEAN Summit in Jakarta have provided more than just a venue for international dialogue; they have been instrumental in propelling the tourism sector forward. Such events draw attendees from across the globe, creating a flurry of economic activity, from hospitality to retail, thus bolstering the tourism industry's contribution to the national economy.

Government Strategies to Encourage Tourism

‍ The Indonesian government has been proactive in implementing strategies to encourage tourism. Visa policies have been relaxed, infrastructure has been improved, and marketing efforts have been amplified to showcase Indonesia's diverse offerings to a global audience. These initiatives are a concerted effort to not only attract tourists but also to enhance their experience within the country, ensuring they return and spread the word.

Cultural Richness as a Tourism Magnet

‍ Indonesia's rich tapestry of cultural heritage continues to be a powerful draw for tourists. From the tranquil temples of Bali to the vibrant traditions of Jakarta, the cultural allure offers an authentic and unique experience that is integral to the nation's tourism appeal.

Sustainability: A Key Tourism Trend

‍ Sustainability in tourism has become a global imperative, and Indonesia is taking significant strides in this direction. Eco-friendly practices are being integrated into tourism policies to ensure that the natural beauty and cultural integrity of tourist destinations are preserved for future generations.

Technological Advancements in Tourism

‍ The role of technology in reshaping the tourism industry cannot be overstated. From virtual tours to digital bookings, technological advancements are enhancing the tourist experience, making travel more accessible and convenient. Indonesia is embracing these changes, positioning itself as a forward-thinking destination in the digital age.

Infrastructure: Building the Future of Tourism

‍ Investment in infrastructure is a clear indicator of Indonesia's commitment to the future of tourism. Development projects are underway to upgrade airports, roads, and tourist facilities, ensuring that the country remains competitive and capable of hosting an increasing number of visitors.

Conclusion and Future Perspectives

‍ The future of Indonesia's tourism sector looks bright. With a clear trajectory of growth and a comprehensive strategy to sustain it, the sector is set to be a pillar of economic stability and development. The rise in tourism reflects the country's resilience and potential as a premier global destination.

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Tourism Industry of Indonesia; Strong Rebound Seen in 2023, But Still Not Back to Normal

In Indonesian media it was reported that Sandiaga Uno, who is Indonesian Minister of Tourism and Creative Economy, stated that the country managed to collect a total of USD $10.46 billion in foreign exchange earnings from the tourism industry during the first three quarters of 2023.

These earnings were brought into the country by the 8.51 million foreign visitor arrivals that were recorded in the same period. So, it means that – on average – one foreign visitor arrival delivers approximately USD $1,230 in earnings for Indonesia. These lucrative earnings, indeed, explain why the government of Indonesia (or any other country) wants to welcome as many foreign tourists as possible. It generates revenue (including tax revenue), trade, business, employment, and investment.

As is widely known, the COVID-19 crisis (when governments of various countries imposed far-reaching social and business restrictions, including even a temporary ban on incoming/outgoing travel, in an attempt to curb the spread of the COVID-19 virus) did enormous damage to the tourism industry, globally.

First, in Q2-2020 and Q3-2020, it became nearly impossible to opt for international travel as many borders were temporarily closed. Then, in 2021 and 2022, it became required to have received COVID-19 vaccines (and boosters) to travel by airplane (implying a significant part of the global population, perhaps up to 30 percent, could not travel by air as most of them wanted some clearer data regarding the efficacy and safety of these vaccines). Lastly, throughout the COVID-19 crisis, there was a lot of unfounded fearmongering going on in media, which made many people too afraid to travel, particularly to a country like Indonesia where the healthcare system does not have the greatest reputation. Furthermore, in 2021 and 2022 the price of jet fuel became very expensive, causing airlines to raise prices of tickets and thereby making it harder for people to afford an airline ticket, particularly to a destination far away.

So, how did this affect Indonesia? Well, from a total of 16.11 million foreign visitor arrivals in 2019, which was before the start of the COVID-19 crisis (although there already was a decline in Chinese tourists visible in December 2019 because COVID-19 started spreading in China in late-2019), the number of foreign tourist arrivals into Indonesia plummeted to 4.05 million in 2020, and hit rock bottom in 2021 with only 1.56 million foreign visitor arrivals. One can imagine how tough this must have been for all those micro, small and medium sized enterprises that rely on tourism. It is estimated that 23 million Indonesians are dependent on work related to tourism.

Table 1 shows that the start of recovery began in 2022, and continued into 2023. In fact, the recovery goes much faster than Indonesia’s Tourism and Creative Economy Ministry expected. At the start of 2023 this ministry had its target for full-year 2023 foreign tourist arrivals at 7.4 million. However, this target was already achieved by July-August 2023.

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Is now the right time to invest in Indonesian tourism? Strategy to prepare Indonesia's tourism sector

Jakarta, 12 November 2021 - The COVID-19 pandemic is the biggest challenge faced by Indonesian tourism business owners and operators. The number of foreign tourists entering the country in 2020 was only about 25% of the number of tourists in 2019. The decline in hotel occupancy in Indonesia in 2020 also sharply decreased in bookings from domestic and international guests, where in January-February, occupancy was still at 49.17% and 49.22%, respectively. However, in March it became 32.24%, and worsened when entering the month of April, which was 12.67%. The existence of large-scale social restrictions and the closure of access in and out of Indonesia, caused a decrease in government revenue in the tourism sector by Rp20.7 billion.

However, along with the continued decline in daily COVID-19 confirmed cases and with the vaccination programme in all provinces in Indonesia, optimism for business recovery has begun to grow.

As stated by Sandiaga Uno, Minister of Tourism and Creative Economy at the PwC Indonesia webinar - Is now the right time to invest in Indonesian tourism? - said, “We are entering the new era of tourism in Indonesia, where the tourism business map is also influenced by changes in market demand and tastes such as sustainable tourism. We have started offering more personalised, customised and localised tourism, focusing more on the quality over quantity. To reach that stage, we must improve the quality of human resources, business resilience, and continue to promote local products in those areas.”

The Government's various efforts in dealing with the COVID-19 pandemic and encouraging national economic growth have begun to show results. However, further joint efforts between the public and private sector are needed to speed up the revival of the tourism industry. Having said this, now may be a good time to invest in the industry in order to ride the wave of the recovery.

Julian Smith, ESG, Government & Infrastructure Advisor of PwC Indonesia said, “There is more the Government can do, such as coordinating the efforts of airports, airlines, hotels and public agencies to offer a smooth and safe experience to people wanting to book a holiday in Indonesia, and to communicate this to the overseas market, building on the recent success of the vaccination and public safety (PPKM) measures.”

Irfan Setiaputra, President & CEO of PT Garuda Indonesia (Persero) Tbk , commented “In order to achieve tourism sustainability, the acceleration of the tourism sectors must be supported with measurable efforts in handling the pandemic. As an entity engaged in the transportation industry where the business fundamental is mobilisation, we certainly believe that sustained efforts in pandemic handling and focus on restoring the tourism industry are crucial aspects in ensuring the readiness of national tourism ecosystem revival – with solid end-to-end collaboration amongst all industry players. In the end, we’ve seen good measures in handling the pandemic will have a multiplier effect in all economic sectors including tourism, which relies on community mobility to recover.”

As stated by Jean Hélière, Chairman of the Bali Hotels Associations , “It’s been a very difficult time for all of us indeed but we are very optimistic about the new measures to reopen the tourism sector. We have seen an increasing request for MICE (Meetings, Incentives, Conferences and Exhibitions) especially from the local market. Also, there are more and more international tourists visiting Bali, which shows their confidence in our security and safety measures. In terms of sustainability, Bali has been ahead of other hotels in Indonesia, we have a plastic free policy, and we now put more focus on water assessment/distribution. At the same time, efforts have been made to raise awareness on food sustainability to support local suppliers.”

Budi Tirtawisata, CEO of Panorama Group emphasised by saying, “From my point of view, the tourism industry is showing signs of recovery. Many local restrictions in Indonesia have started to ease slowly and market confidence has increased along with the success of the vaccination programme. Many countries have reopened their borders. So, we expect the tourism industry will start to recover in mid 2022 with cautious steps while we continue to educate the market on health and safety measures.”

Nathalia Wilson, South East Asia and Korea Development Director of IHG Hotels & Resorts , explains on the asset, “Tourism is one of the economic drivers to focus in Indonesia because of its significant foreign exchange revenue and employment contribution. We have seen a growing number of domestic new investors from family businesses, companies or high net-worth individuals acquiring hotels as legacy assets or diversification. Furthermore, the change of stakeholders in the market comes from the consolidation of government hotel assets under BUMN and strategic partnership being formed by local operators and regional capital. Investment in tourism is a long term strategy and for Indonesia to increase its competitiveness, infrastructure development is critical to tourism growth. Indonesia has such a diverse tourism environment to offer investors and a large, productive population which is fundamental as demand generators. Although I think this is the right time to invest in the tourism sector, some of the key issues such as the availability of equity options, debt financing, and managing valuation/price expectation gaps still need to be addressed.”

Hendri Hendrawan, Infrastructure and Tourism Director of PwC Indonesia , closed by saying “The tourism industry needs to take into consideration the following aspects if they want to invest now in Indonesian tourism such as diversification, improving resilience by right-sizing, capitalising on recent consumer trends, and moving towards sustainable tourism. Sustainability in the tourism sector is becoming more important because more investors have requirements related to ESG (Environment, Social, and Governance) so the industry needs to invest in sustainability-related aspects. The tourism industry can also explore potential revenue from the carbon off-set scheme as an additional source of income”.

About PwC Indonesia

PwC Indonesia comprises KAP Tanudiredja, Wibisana, Rintis & Rekan, PT PricewaterhouseCoopers Indonesia Advisory, PT Prima Wahana Caraka, PT PricewaterhouseCoopers Consulting Indonesia, and Melli Darsa & Co., Advocates & Legal Consultants, each of which is a separate legal entity, and all of which together constitute the Indonesian member firm of the PwC global network, which is collectively referred to as PwC Indonesia.

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Indonesia’s Tourism Sector Shows Positive Outlook for 2024

The tourism and creative economy sectors in Indonesia experienced a significant decline during the COVID-19 pandemic, with foreign tourist numbers dropping to approximately 4.05 million in 2020 (25 percent of 2019).

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Tourism in Indonesia

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Tourism in Indonesia is big business. But why is this industry so important and what does it all mean? Read on to find out…

Geography of Indonesia

The tourism industry in indonesia, statistics about tourism indonesia, popular tourist attractions in indonesia, types of tourism in  indonesia, economic impacts of tourism in indonesia, social impacts of tourism in indonesia, environmental impacts of tourism in indonesia, faqs about tourism in indonesia , to conclude: tourism in indonesia.

Indonesia, an archipelago of over 17,000 islands, offers a mesmerising blend of cultures, landscapes, and historical wonders. Stretching from the bustling streets of Jakarta to the serene beaches of Bali and the ancient temples of Yogyakarta, Indonesia presents a unique tapestry of experiences for every traveller. In this article, I’ll provide insights into the diverse world of Indonesian tourism, capturing its vibrant traditions, natural beauty, and the myriad attractions that beckon visitors from around the globe. Join me as we embark on a journey through the multifaceted allure of Indonesia.

Indonesia is an archipelago located in Southeast Asia and is the world’s largest island country. Here is an overview of the geography of Indonesia:

• Location: Indonesia is situated between the Indian Ocean and the Pacific Ocean, spanning both the Western and Eastern Hemispheres. It is located between mainland Southeast Asia and Australia.
• Archipelago: Indonesia consists of more than 17,000 islands, with five main islands: Sumatra, Java, Kalimantan (Borneo), Sulawesi, and Papua. These islands are surrounded by smaller islands and islets, forming a vast archipelago.
• Size and Borders: Indonesia covers a total land area of approximately 1.9 million square kilometers (736,000 square miles), making it the 14th largest country in the world by land area. It shares land borders with Malaysia, Papua New Guinea, and Timor-Leste.
• Mountains and Volcanoes: Indonesia is known for its stunning mountain ranges and active volcanoes. The highest peak is Puncak Jaya in Papua, standing at 4,884 meters (16,024 feet). Other notable mountains include Mount Bromo, Mount Rinjani, and Mount Merapi.
• Rivers and Lakes: Several rivers flow through Indonesia, including the Kapuas River in Kalimantan, the Musi River in Sumatra, and the Citarum River in Java. Lake Toba in North Sumatra is the largest volcanic lake in the world and a popular tourist destination.
• Biodiversity: Indonesia is incredibly rich in biodiversity, with diverse ecosystems such as rainforests, coral reefs, mangroves, and savannas. It is one of the world’s most biodiverse countries, home to numerous endemic species, including the Komodo dragon and orangutan.
• Climate: Indonesia experiences a tropical climate, characterized by high temperatures and humidity throughout the year. The country has two main seasons: the wet season (October to April) and the dry season (May to September).
• Coastal Areas: Indonesia has an extensive coastline that stretches for approximately 54,716 kilometers (34,000 miles). It is surrounded by the Indian Ocean to the west and south, and the Pacific Ocean to the north and east.
• Coral Reefs: Indonesia’s waters are renowned for their vibrant coral reefs, making it a popular destination for diving and snorkeling. The Coral Triangle, located in the waters surrounding Indonesia, is considered the world’s epicenter of marine biodiversity.
• Natural Hazards: Due to its location along the Pacific Ring of Fire, Indonesia is prone to earthquakes, volcanic eruptions, and tsunamis. It is important for visitors to stay informed about any potential hazards and follow local authorities’ instructions.

The geography of Indonesia offers a diverse and picturesque landscape, from towering mountains to pristine beaches, making it a fascinating destination for nature enthusiasts and adventure seekers alike.

Indonesia is a country that attracts millions of tourists each year with its diverse culture, natural beauty, and rich history. The tourism industry in Indonesia plays a significant role in the country’s economy. Here is an introduction to the tourism industry in Indonesia:

Cultural Heritage: Indonesia is home to a vibrant mix of cultures, including Javanese, Balinese, Sumatran, and many more. Tourists are drawn to explore ancient temples, traditional dances, music performances, and local arts and crafts.

Natural Attractions: Indonesia boasts stunning natural landscapes, including pristine beaches, lush rainforests, active volcanoes, and diverse wildlife. Popular natural attractions include Bali’s beaches, Komodo National Park, Borobudur Temple, Mount Bromo, and the Togean Islands.

Adventure Tourism: Indonesia offers numerous opportunities for adventure tourism. Activities such as hiking, trekking, diving, surfing, and whitewater rafting are popular among tourists seeking thrilling experiences in destinations like Raja Ampat, Lombok, Yogyakarta, and Borneo.

Ecotourism: With its rich biodiversity and conservation efforts, Indonesia has become a hub for ecotourism. Travelers can explore national parks, wildlife reserves, and marine protected areas, contributing to sustainable practices and supporting local communities.

Culinary Experiences: Indonesian cuisine is diverse and flavorful, with regional specialties like nasi goreng, rendang, satay, and sambal. Food tourism is popular, and tourists can embark on culinary tours, cooking classes, and street food adventures.

Wellness and Spa Retreats: Indonesia offers a range of wellness and spa retreats, particularly in Bali. Tourists can indulge in traditional massages, yoga classes, meditation retreats, and wellness treatments set amidst serene natural surroundings.

Island Hopping: Indonesia’s vast archipelago provides opportunities for island hopping adventures. Travelers can explore different islands, each with its unique landscapes, cultures, and attractions. Popular island destinations include Bali, Lombok, Java, Sumatra, and the Gili Islands.

Heritage Sites: Indonesia is home to several UNESCO World Heritage Sites, such as Borobudur Temple, Prambanan Temple, Komodo National Park, and Ujung Kulon National Park. These sites attract history enthusiasts and cultural travelers.

Shopping and Souvenirs: Indonesia offers a range of shopping experiences, from bustling markets to modern shopping malls. Tourists can purchase traditional handicrafts, batik textiles, silver jewelry, wood carvings, and other unique souvenirs.

MICE Tourism: Indonesia has also gained prominence as a destination for Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism. The country has modern convention centers and facilities that cater to business and corporate events.

The tourism industry in Indonesia continues to grow, offering a wide range of experiences and attractions for visitors. The government, along with tourism organizations, promotes sustainable tourism practices to preserve the country’s natural and cultural heritage while providing economic opportunities for local communities.

Now lets put things into perspective. Here are some statistics about tourism in Indonesia:

• Tourist Arrivals: In 2019, Indonesia welcomed over 16 million international tourist arrivals, making it one of the most visited countries in Southeast Asia.
• Contribution to GDP: Tourism contributes significantly to Indonesia’s economy, accounting for approximately 6% of the country’s GDP.
• Employment: The tourism sector in Indonesia provides employment opportunities to millions of people, both directly and indirectly. It is estimated that tourism supports around 13 million jobs in the country.
• Top Visitor Countries: The top five countries of origin for tourists visiting Indonesia are China, Malaysia, Australia, Singapore, and India.
• Popular Destinations: Bali is the most popular destination in Indonesia, attracting the majority of international tourists. Other popular destinations include Jakarta, Yogyakarta, Lombok, and Bandung.
• Cultural Tourism: Cultural tourism plays a significant role in Indonesia’s tourism industry. The country is home to numerous cultural attractions, including ancient temples, traditional dances, and unique arts and crafts.
• Ecotourism and Adventure Tourism: Indonesia is known for its diverse natural landscapes and offers opportunities for ecotourism and adventure tourism. Popular activities include diving, hiking, wildlife watching, and exploring national parks.
• Cruise Tourism: Indonesia has been focusing on developing cruise tourism, with several ports of call for cruise ships. Popular cruise routes include Bali, Komodo Island, and Raja Ampat.
• Domestic Tourism: Domestic tourism is also a significant contributor to the tourism industry in Indonesia. Indonesians travel within their own country to explore different regions and enjoy local attractions.
• Tourism Infrastructure: The Indonesian government has been investing in improving tourism infrastructure, including airports, roads, accommodations, and attractions, to enhance the visitor experience and support the industry’s growth.

These statistics highlight the importance of tourism in Indonesia’s economy and the country’s popularity as a tourist destination.

Indonesia offers a wide range of popular tourist attractions that cater to various interests. Here are some of the most renowned attractions in Indonesia:

• Bali: Known as the “Island of the Gods,” Bali is Indonesia’s most popular tourist destination. It offers stunning beaches, vibrant nightlife, lush rice terraces, ancient temples, and traditional arts and culture.
• Borobudur Temple: Located in Central Java, Borobudur Temple is the world’s largest Buddhist temple. It is a UNESCO World Heritage Site and attracts visitors with its intricate stone carvings and panoramic views of the surrounding landscapes.
• Komodo National Park: Situated in the eastern part of Indonesia, Komodo National Park is home to the Komodo dragon, the world’s largest lizard. Visitors can explore the park’s diverse marine life, hike to scenic viewpoints, and witness the unique reptiles in their natural habitat.
• Mount Bromo: Located in East Java, Mount Bromo is an active volcano and a popular destination for adventure seekers. The stunning sunrise views from its summit, the otherworldly landscape of the surrounding Bromo Tengger Semeru National Park, and the opportunity to hike and ride a jeep across the volcanic terrain make it a must-visit attraction.
• Ubud: Nestled in the heart of Bali, Ubud is known for its lush green landscapes, traditional art and crafts, and serene atmosphere. Visitors can explore art galleries, visit ancient temples, experience traditional Balinese dance performances, and enjoy the tranquility of the surrounding rice fields.
• Raja Ampat Islands: Located in West Papua, the Raja Ampat Islands are a paradise for diving enthusiasts. The region boasts stunning coral reefs, crystal-clear waters, and an abundance of marine life, including manta rays and colorful fish species.
• Tana Toraja: Situated in South Sulawesi, Tana Toraja is famous for its unique funeral rituals and traditional houses known as Tongkonan. Visitors can witness elaborate funeral ceremonies, explore traditional villages, and admire the intricate wood carvings that depict the local culture.
• Yogyakarta: Yogyakarta, often referred to as Jogja, is a cultural hub in Java. It is known for its ancient temples, including the UNESCO-listed Prambanan and the magnificent Borobudur. Visitors can also explore the royal palaces, visit art markets, and indulge in traditional Javanese cuisine.
• Gili Islands: The Gili Islands, located off the coast of Lombok, offer a tranquil escape with their pristine beaches, clear turquoise waters, and laid-back atmosphere. These islands are perfect for snorkeling, diving, and enjoying a relaxing beach vacation.
• Jakarta: As Indonesia’s capital city, Jakarta offers a blend of modern and traditional attractions. Visitors can explore historical sites such as Kota Tua (Old Town), visit museums, enjoy shopping in malls, and experience the vibrant city life.

These attractions showcase the diverse landscapes, rich cultural heritage, and natural beauty that make Indonesia a popular destination for travelers from around the world.

Indonesia offers a wide range of tourism experiences that cater to various interests. Here are some of the most popular types of tourism in Indonesia:

• Beach Tourism: With its thousands of islands, Indonesia is famous for its stunning beaches. Bali, Lombok, Gili Islands, and Raja Ampat are just a few of the many destinations that attract beach lovers with their pristine white sands, crystal-clear waters, and opportunities for snorkeling, diving, and water sports.
• Cultural Tourism: Indonesia is rich in cultural diversity, and cultural tourism is a major draw for visitors. Places like Yogyakarta, Solo, and Ubud in Bali offer insights into traditional arts, crafts, music, dance, and local customs. Visitors can witness traditional ceremonies, explore ancient temples, and immerse themselves in the unique cultures of different regions.
• Adventure Tourism: Indonesia’s diverse landscapes provide ample opportunities for adventure tourism. Hiking volcanoes, such as Mount Bromo or Mount Rinjani, trekking through lush jungles, white-water rafting, and surfing are popular activities for adventure enthusiasts. The country also offers opportunities for wildlife spotting, including orangutans in Borneo and Komodo dragons in Komodo National Park.
• Eco-Tourism: Indonesia’s rich biodiversity and natural wonders make it a prime destination for eco-tourism. Visitors can explore national parks like Taman Negara in Sumatra, explore the rainforests of Kalimantan, or venture into the remote areas of Papua to witness unique flora and fauna.
• Wellness and Spa Tourism: Indonesia is renowned for its wellness retreats and spa resorts. Places like Bali and Lombok offer a wide range of wellness experiences, including yoga retreats, meditation centers, traditional healing therapies, and luxurious spa treatments.
• Historical Tourism: Indonesia has a rich history dating back thousands of years, and historical tourism is popular among visitors. Sites like Borobudur Temple, Prambanan Temple, and Sultan’s Palace in Yogyakarta attract history enthusiasts who want to explore the country’s ancient past.
• Culinary Tourism: Indonesian cuisine is diverse and flavorful, making culinary tourism a popular choice. Visitors can indulge in local delicacies such as nasi goreng (fried rice), satay, rendang, and sate lilit. Exploring traditional food markets and taking cooking classes are also popular activities.
• Shopping Tourism: Indonesia offers a vibrant shopping scene, especially in cities like Jakarta and Bandung. Visitors can explore modern malls, traditional markets, and art markets to find unique handicrafts, batik textiles, traditional souvenirs, and fashionable items.
• Religious Tourism: Indonesia is home to various religions, and religious tourism is prominent. From visiting the iconic Borobudur Temple and Prambanan Temple for Buddhist and Hindu pilgrimages to exploring mosques and historic churches, there are religious sites that attract visitors of all faiths.
• Diving and Snorkeling Tourism: Indonesia is part of the Coral Triangle, which is known for its rich marine biodiversity. Diving and snorkeling enthusiasts flock to destinations like Bali, Komodo National Park, Raja Ampat, and the Gili Islands to explore vibrant coral reefs, encounter colorful fish species, and witness manta rays and sea turtles.

These types of tourism showcase the diverse offerings of Indonesia, attracting travelers with varying interests and preferences.

Tourism plays a significant role in the economy of Indonesia, contributing to its GDP, employment, and foreign exchange earnings. Here are some key economic impacts of tourism in Indonesia:

• GDP Contribution: Tourism makes a substantial contribution to Indonesia’s GDP. In 2019, the direct contribution of travel and tourism to the country’s GDP was approximately 5.2%. When considering the indirect and induced impacts, the total contribution of tourism to the GDP was estimated to be around 11.8%.
• Employment Generation: Tourism is a major job creator in Indonesia. The industry provides employment opportunities for various sectors, including hotels, restaurants, transportation, tour operators, travel agencies, and handicrafts. In 2019, travel and tourism supported about 13.8 million jobs, accounting for approximately 10% of total employment in the country.
• Foreign Exchange Earnings: Tourism brings in significant foreign exchange earnings to Indonesia. In 2019, international tourism receipts amounted to around $20.7 billion. This revenue helps improve the country’s balance of payments, supports the local currency, and contributes to economic stability.
• Regional Development: Tourism helps in the development of various regions in Indonesia. Popular tourist destinations, such as Bali, Yogyakarta, and Lombok, receive substantial investments in infrastructure, accommodation, and services. This development spreads economic benefits beyond major cities and contributes to the growth of local economies.
• Small and Medium Enterprises (SMEs): Tourism provides opportunities for small and medium-sized enterprises to thrive. Local businesses, such as homestays, restaurants, handicraft producers, and tour operators, benefit from the demand generated by tourists. This promotes entrepreneurship, empowers local communities, and supports sustainable economic growth.
• Infrastructure Development: The growth of tourism in Indonesia has led to infrastructure development. Airports, roads, ports, and other transportation facilities have been expanded and improved to accommodate the increasing number of tourists. This infrastructure development not only enhances the tourism experience but also benefits other sectors of the economy.
• Investment Opportunities: The tourism industry attracts both domestic and foreign investments, driving economic growth and diversification. Investments are made in hotels, resorts, entertainment facilities, eco-tourism projects, and transportation infrastructure. These investments create employment opportunities, generate revenue, and stimulate economic activities in the related sectors.
• Income Distribution: Tourism in Indonesia contributes to income distribution by generating employment and income opportunities for local communities. Revenue generated from tourism activities can have a multiplier effect, as it circulates within the local economy through spending on goods and services. This helps improve the standard of living and reduces income inequalities.
• Cultural Preservation: Tourism in Indonesia often promotes the preservation of cultural heritage and traditional practices. Communities with unique cultural attractions benefit from tourism, as it encourages the preservation and promotion of their customs, arts, crafts, and traditional performances. This not only helps sustain cultural identity but also provides economic incentives for cultural preservation efforts.
• Diversification of Economy: The tourism industry contributes to the diversification of Indonesia’s economy. It reduces dependence on specific sectors and creates alternative sources of income. This diversification strengthens the overall resilience of the economy and reduces vulnerability to external shocks.

It is important to note that the COVID-19 pandemic has significantly impacted the tourism industry worldwide, including Indonesia. The full extent of its impact on the economic contributions of tourism in Indonesia is still being assessed, and recovery efforts are underway to revive the sector.

Tourism in Indonesia has several social impacts that influence local communities, cultural preservation, and social dynamics. Here are some key social impacts of tourism in Indonesia:

• Cultural Exchange: Tourism in Indonesia facilitates cultural exchange between visitors and local communities. Tourists have the opportunity to experience Indonesia’s rich cultural heritage, traditions, and customs. This interaction fosters mutual understanding, appreciation, and respect for diverse cultures.
• Preservation of Cultural Heritage: Tourism in Indonesia often plays a vital role in preserving cultural heritage. Popular tourist destinations in Indonesia, such as Borobudur Temple, Prambanan Temple, and traditional villages, receive conservation efforts and financial support due to their cultural significance. Tourism revenue helps maintain and protect cultural sites, arts, crafts, and traditional practices.
• Community Empowerment: Tourism in Indonesia provides income and employment opportunities for local communities. Small-scale businesses, homestays, local guides, and artisans benefit from the demand created by tourists. This economic empowerment enhances the quality of life, improves infrastructure, and supports community development initiatives.
• Awareness of Environmental Conservation: Tourism in Indonesia can raise awareness about environmental conservation. Many tourist attractions in Indonesia are natural wonders, such as Komodo National Park, Taman Negara Gunung Leuser, and Raja Ampat. Visitors, through guided tours and educational programs, learn about the importance of preserving natural resources, ecosystems, and wildlife habitats.
• Infrastructure Development: Tourism development often leads to improved infrastructure in local communities. Airports, roads, accommodations, and public facilities are upgraded to cater to the needs of tourists. This infrastructure development benefits not only tourists but also local residents, improving their access to services and enhancing their overall living conditions.
• Cultural Revitalization: Tourism in Indonesia can contribute to the revitalization of traditional cultural practices. Local communities may revive traditional dances, music, handicrafts, and rituals to showcase their cultural heritage to visitors. This revitalization helps preserve and promote cultural traditions that may have otherwise declined over time.
• Education and Awareness: Tourism provides educational opportunities for local communities. Visitors often show interest in learning about the local culture, history, and traditions. This encourages local communities to share their knowledge and traditions, leading to the preservation and transmission of cultural knowledge across generations.
• Pride in Local Identity: Tourism in Indonesia can instill a sense of pride in local communities. Recognizing the value and appeal of their own cultural heritage, communities may take pride in preserving and showcasing their traditions, resulting in increased self-esteem and cultural identity.
• Social Integration: Tourism in Indonesia can foster social integration by bringing together people from different backgrounds. Visitors and locals interact, exchange ideas, and share experiences, contributing to social cohesion and understanding.
• Community-Based Tourism Initiatives: Community-based tourism initiatives empower local communities to participate actively in tourism development. These initiatives ensure that the benefits of tourism are distributed more equitably, allowing communities to have a voice in decision-making, preserving their cultural heritage, and maintaining control over their resources.

While tourism in Indonesia brings numerous social benefits, it is important to manage its impacts responsibly to avoid negative social consequences such as over-commercialization, cultural commodification, and social inequalities. Sustainable tourism practices that involve local communities and respect their traditions and values are crucial for maximizing the positive social impacts of tourism in Indonesia.

Tourism in Indonesia, like in many other countries, has both positive and negative environmental impacts. Here are some key environmental impacts of tourism in Indonesia:

• Natural Resource Consumption: Tourism in Indonesia places demands on natural resources such as water, energy, and land. Increased tourist arrivals often lead to higher water consumption, increased energy usage for accommodation and transportation, and land development for hotels, resorts, and infrastructure. This can strain local resources and put pressure on ecosystems.
• Waste Generation: The tourism industry generates significant amounts of waste, including plastic, packaging, food waste, and other disposable items. Improper waste management and disposal practices can lead to pollution of water bodies, soil, and air, impacting the natural environment and ecosystems.
• Loss of Biodiversity and Habitat Degradation: Popular tourist destinations in Indonesia often include natural areas, such as rainforests, coral reefs, and marine ecosystems. Increased tourism activities can lead to habitat destruction, deforestation, and loss of biodiversity. Unsustainable practices like overfishing, improper waste disposal, and unregulated development can degrade natural habitats and harm wildlife populations.
• Pollution and Carbon Emissions: Tourism-related activities contribute to pollution, including air and water pollution. Transportation, especially air travel, generates greenhouse gas emissions that contribute to climate change. Water pollution can occur through wastewater discharge from accommodations and recreational activities, impacting marine ecosystems and coral reefs.
• Deforestation and Land Conversion: Tourism development can lead to deforestation and land conversion for hotels, resorts, and infrastructure projects. This can result in the loss of valuable forest ecosystems, disrupt wildlife habitats, and contribute to soil erosion and land degradation.
• Coral Reef Damage: Indonesia is known for its stunning coral reefs, which attract divers and snorkelers. However, irresponsible diving practices, anchoring, and the use of harmful chemicals for sunscreen can cause damage to coral reefs, affecting their health and biodiversity.
• Water and Coastal Erosion: Increased tourism activities and infrastructure development along coastlines can contribute to water erosion and coastal degradation. Beach erosion, loss of sand dunes, and alteration of natural sediment patterns can impact coastal ecosystems and diminish the aesthetic value of the area.
• Water Pollution from Tourism Activities: Recreational activities such as boating, swimming, and snorkeling can introduce pollutants into water bodies, including oil spills, sewage discharge, and litter. These pollutants can harm aquatic life, coral reefs, and water quality.
• Pressure on Protected Areas: Indonesia has many protected areas, including national parks and reserves. High visitor numbers and inadequate management can result in increased pressure on these fragile ecosystems, leading to habitat disturbance and wildlife stress.
• Cultural and Heritage Impact: Increased tourism can put pressure on cultural and heritage sites, leading to overcrowding, erosion of traditional practices, and loss of authenticity. Uncontrolled tourism development can disrupt local communities and their way of life.

It’s important to note that many efforts are being made in Indonesia to promote sustainable tourism practices and minimize the negative environmental impacts of tourism in Indonesia. This includes implementing waste management programs, promoting eco-friendly accommodations, educating tourists about responsible behavior, and supporting conservation initiatives. Responsible tourism practices and awareness are essential for protecting Indonesia’s diverse ecosystems and preserving its natural beauty for future generations.

Now that we know a bit more about tourism in Indonesia, lets answer some of the most common questions on this topic:

Sure! Here are 10 frequently asked questions about tourism in Indonesia along with their answers:

What is the best time to visit Indonesia?

The best time to visit Indonesia is during the dry season, which generally falls between April and October. However, the specific ideal time to visit may vary depending on the region you plan to explore.

What are the must-visit destinations in Indonesia?

Some popular destinations in Indonesia include Bali, Jakarta, Yogyakarta, Komodo National Park, Borobudur Temple, Mount Bromo, and Raja Ampat.

Do I need a visa to visit Indonesia?

It depends on your nationality. Many countries are eligible for visa-free entry or visa on arrival, allowing visitors to stay for a certain period. However, some nationalities may require a visa in advance. It’s recommended to check the visa requirements for your specific nationality before traveling.

What is the currency of Indonesia?

The currency of Indonesia is the Indonesian Rupiah (IDR). It’s advisable to carry local currency for convenience, although major tourist areas also accept major credit cards.

Is it safe to travel in Indonesia?

Overall, Indonesia is considered a safe destination for tourists. However, it’s always important to take general safety precautions, such as being aware of your surroundings, avoiding isolated areas at night, and taking necessary precautions against theft.

What are some traditional Indonesian dishes I should try?

Some popular Indonesian dishes to try include nasi goreng (fried rice), satay, rendang (spicy beef stew), gado-gado (vegetable salad with peanut sauce), and nasi padang (rice with various side dishes).

Is it necessary to get vaccinations before traveling to Indonesia?

It’s recommended to consult with a healthcare professional or travel clinic to get the necessary vaccinations and medical advice based on your travel plans and personal health history. Common vaccinations include Hepatitis A, Typhoid, and Tetanus.

Can I drink tap water in Indonesia?

It’s generally advisable to drink bottled or filtered water in Indonesia to avoid any potential health risks. Bottled water is widely available and affordable.

Are there any cultural customs or etiquette I should be aware of?

Indonesian culture values politeness and respect. It’s advisable to dress modestly, especially when visiting religious sites, and to ask for permission before taking someone’s photo. Learning a few basic Indonesian phrases can also be appreciated by the locals.

What are some popular water activities in Indonesia?

Indonesia offers various water activities such as snorkeling, scuba diving, surfing, and island hopping. Popular spots include Bali, Gili Islands, and Komodo National Park.

Indonesia’s rich tapestry of islands offers a captivating blend of cultures, landscapes, and historical wonders. From the bustling streets of Jakarta to the serene beaches of Bali, the archipelago promises diverse and unforgettable experiences. If you enjoyed this article, I am sure you will like these too:

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G20 delivers huge boost to Indonesia’s tourism

The G20 Summit contributed to Bali’s economic growth in the third quarter of 2022 and provided a multiplier effect on the tourism industry at all levels.

At a media briefing, Sandiaga Uno, minister of the Ministry of Tourism and Creative Economy, stated that Bali’s economy in 3Q2022 experienced significant growth of up to eight per cent year-on-year as compared to three per cent the previous quarter.

He added that holding the G20 Summit in Bali delivered a strong impetus to the recovery of Indonesia’s tourism sector – the number of domestic and international travellers at the summit activities and meetings reached 20,559 people, and arrivals to Bali has now hit an average of 24,009 daily.

Direct spending stood at US$575 million, which he attributed to F&B, attractions, ground transport, telecommunications, shopping, accommodation and flights. Other organiser expenditures included PCOs, venues, vendors and government, as well as reception and marketing.

Indonesian Hotel and Restaurant Association (IHRA) reported that occupancy last year was only around 20 per cent – it has now reached nearly 70 per cent. About 80 per cent of staff shortage due to the pandemic lay-offs has also been filled.

Sandiaga said: “We project that the hotel occupancy rate in Bali will remain high, especially during the Christmas and New Year holidays.”

The minister is optimistic that the income from the tourism and creative economic sector can reach the target of US$1.7 billion this year, not only from the contribution of the G20 Summit, but also various other international events in Indonesia this year.

According to G20’s website, the G20 Summit is projected to contribute up to 7.4 trillion rupiah (US$533 million) in GDP (gross domestic product), including an increase in domestic consumption of up to 1.7 trillion rupiah.

Sandiaga commented that the event was a promotion to “meet the target of 3.6 million international tourist arrivals with a total foreign exchange earning of US$1.7 billion”.

“G20 has had the maximum and direct impact on society, such as increasing foreign tourists from 1.8 million to 3.6 million and also (creating) 600,000 to 700,700 new jobs supported by good performance in the culinary, fashion and craft sectors,” noted Nyoman Shuida, expert staff for Utilization of Maritime Resources at the Coordinating Ministry for Human Development and Culture.

The summit was attended by 17 heads of state, three foreign ministers, nine invited countries and 10 international organisations. Data from G20’s website showed the summit events absorbed a budget of 674 billion rupiah and reaped a return on investment of up to 552,000 billion rupiah for the country.

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More Than Five Million New Travel & Tourism Jobs to Be Created in Indonesia Within the Next Decade

More than five million new Travel & Tourism jobs to be created in Indonesia within the next decade

Sector expected to grow at twice the rate of the overall economy over the next 10 years

 Travel & Tourism to inject an additional IDR 1,042 trillion to the economy by 2032

London, UK: The World Travel & Tourism Council’s latest Economic Impact (EIR) reveals Indonesia’s Travel & Tourism sector is expected to create more than five million new jobs over the next decade.

The forecast from the World Travel & Tourism Council ( WTTC ) also shows the sector will be a driving force behind the country’s economic recovery, following more than two years of suffering.

Over the next 10 years, Indonesia’s Travel & Tourism sector is expected to grow at an average annual rate of 10%, twice the rate of the overall economy, which is forecasted to grow by 5.1%.

The sector’s contribution to GDP will reach nearly U.S.$ 118.4 billion (IDR 1,692 trillion), injecting an additional U.S.$ 72.9 billion (IDR 1,042 trillion) to the economy and representing 5.7% of the total economy.

The forecast also reveals the Travel & Tourism sector is expected to create more than 500,000 new jobs every year for the next decade, reaching more than 16 million employed in the sector by 2032.

By the end of this year, the sector’s contribution to GDP is expected to grow 57.2% to U.S.$ 45.5 billion (IDR 650 trillion), amounting to 3.6% of the total economic GDP, although employment in the sector is set grow by just 2.1%, to reach just over 11.2 million jobs.

Julia Simpson, WTTC President & CEO, said: “Indonesia’s Travel & Tourism sector is in a strong recovery, with a very bright forecast for both GDP and jobs.

“Although the future looks bright for Indonesia, the recovery last year lagged behind other major Travel & Tourism markets due to damaging barriers to travel.

“Indonesia is a critical destination which attracted millions of tourists before the pandemic and is highly reliant on the Travel & Tourism sector.

“We commend the Indonesian government for putting Travel & Tourism at the forefront of the global agenda at the upcoming G20.

“It is crucial to remove the last remains of travel rules to facilitate international arrivals and in turn give a massive boost to the sector’s growth and the country’s economic revival.” 

Before the pandemic, Indonesia’s Travel & Tourism sector’s contribution to GDP was 5.6% (U.S.$ 65.4 billion / IDR 934.6 trillion) in 2019, falling to just 2.8% (U.S.$ 32.3 billion / IDR 461.1 trillion) in 2020, halving the contribution (50.7%).

The sector also supported nearly 12.4 million jobs, before an almost complete halt to international travel which resulted in a drop of nearly two million (15.4%), to reach just over 10.4 million in 2020. 

However, according to the global tourism body, continuous restrictions, and impediments to travel hampered the potential recovery of the sector in 2021.

Last year, its contribution to GDP decreased 10.3% year on year, to reach U.S.$ 29 billion (IDR 413.7 trillion) (2.4% of the total economy). 

In terms of employment, the sector saw a recovery of nearly 500,000, representing a positive rise of 4.6% to nearly more than 10.9 million.

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‘Nothing left’: Indonesia’s tourism industry fears wipeout under tax hike

Plans to introduce 40-75 percent tax rate for entertainment services prompt fierce backlash from businesses.

Jakarta, Indonesia –  After spa therapist Murniyati survived COVID-19 on a sparse salary, she thought the worst was over.

But after the Indonesian government’s announcement of a steep rise in taxes on entertainment services, she fears the salon where she works could be forced to close, leaving her unemployed.

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“My husband is just a taxi driver so our combined income is low. Our life, my life, depends on him and me,” she told Al Jazeera.

Murniyati is just one of the countless workers across Indonesia who could be affected by the plans to apply a 40-75 percent tax rate to entertainment services such as spas, bars, nightclubs and karaoke joints.

The proposed hike has sparked a fierce backlash from businesses, including a court challenge by spa owners in Bali.

Hariyadi Sukamdani, the chairman of the Indonesian Hotel and Restaurant Association, said in a press conference last month that the changes would lead to job losses in an “industry that absorbs a significant amount of labour and does not require higher education, making it essential for the general population”.

Amid the blowback, the government announced it would delay the hike pending an evaluation.

“We will collectively assess what the impact [of a higher entertainment tax] would be, especially for small business owners,” Coordinating Maritime Affairs and Investment Minister Luhut Binsar said last month.

Still, Sofie Sulaiman, Murniyati’s manager at Jamu Body Treatments in Jakarta, is angry.

The spa provides jobs for many women, all of whom are from less well-off backgrounds. Many of them are widows and single mothers, and most have been working at the spa for more than 20 years.

Sulaiman said her business would need to cover the cost of the tax hike, as it is too high to pass on to customers.

“Our market is teachers. It’s not businessmen, it’s not tourists, it’s not honeymooners who spend money when they travel. They are just teachers, they are just housewives,” Sulaiman told Al Jazeera.

Sulaiman said it would be impossible to make a profit under the new tax regime.

“We will sacrifice ourselves,” Sulaiman said, adding that she might have to close down. “There is nothing left after that.”

Revenue and incentives

Bhima Yudhistira, an economist from the Center of Economic and Law Studies, said the tax hike could boost revenue for local governments and provide greater autonomy to communities, but the lack of consultation had left officials divided.

“Some local governments which have huge tourism spots such as Bali see this as not a potential for revenue, they see this as a new tax burden after COVID-19,” Yudhistira told Al Jazeera. “They will lose because the number of tourists will drop and businesses will be affected.”

COVID-19 had a devastating effect on Indonesian businesses and workers, with 2.67 million jobs lost in 2020 and more than 30 million micro, small and medium enterprises (MSMEs) forced to close during the pandemic, according to the national statistics office.

Under the planned tax revision, the rate is set by each local government, making November’s local elections especially important, said Yudhistira, who is sceptical about the government’s promise to provide relief measures and incentives to affected businesses.

He believes businesses could be “cherry-picked” depending on their political connections.

“We see that many of the local government incentives previously didn’t work well … The industry owners or business owners that have strong connections to the local government leaders, to the governors, they have incentives.”

Indonesia has made a name for itself as an affordable destination, but some government officials have expressed their hope that higher costs will drive away visitors on a budget in favour of high-spending tourists.

Gabby Walters, an associate professor of tourism and business at the University of Queensland, said that such an approach would be a mistake.

More than one million Australians visited Bali last year, most of them looking for a cheap, fun holiday. They made up a quarter of all tourist arrivals, making them the largest visitor group, according to official statistics.

“[Australian] Bali tourists want alcohol, they want to party, so you’ve seen a rise of beach clubs, nightclubs and that’s not what the high-yielding tourists are after,” Walters told Al Jazeera. “The way that the Bali tourism industry is structured, it’s set up to encourage and cater for that market.”

It is a market that could be put off by higher prices, at a time when tourism numbers are only just over half of what they were before the pandemic, Walters said.

“If there’s going to be a 40-75 percent increase to buy a drink in a bar or go to a nightclub or have a massage, then people are definitely going to look elsewhere,” Walters said, noting that other destinations in the region have been cutting taxes.

Thailand dropped a related tax to five percent to attract tourists and has seen a boom in arrivals. More than 28 million tourists visited the country last year, while Indonesia attracted just over nine million.

Moving forward, Sulaiman is unsure about the future of her spa, but she knows that shutting up shop and leaving her staff unemployed is a possibility.

She is confused, like many others in the industry, about the lack of consultation.

“I don’t think in any other country, you would find this kind of hike in tax,” she said. “They have never invited us to have a discussion.”

Yudhistira said the tax revisions were made too quickly, with those most affected left out of the conversation. He thinks there are other ways to increase local government revenue without damaging the entertainment industry.

“The burden for the entertainment industry is high, the number of laid-off workers … Instead of increasing the entertainment tax they should increase the other local government tax,” he said.

With the outcome of the government’s tax plans unclear, legal appeals pending and local elections looming, the future of the entertainment industry is uncertain.

For workers like Murniyati, so are their livelihoods.

“Our lives depend on our jobs. We are worried,” she said.

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Sandiaga visits Prabowo after backing rival candidate in polls

Friday, 12 Apr 2024

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Sandiaga Uno (seated, rear left), watches as PPP legislative candidate Agoes Joesni (right) takes the floor at an election rally in this file picture from Feb 4, 2024 in Pekalongan, Central Java. - Antara

JAKARTA: Tourism and Creative Economy Minister Sandiaga Uno paid a visit to president-elect Prabowo Subianto at his private residence on the first day of Aidilfitri, a move that could signal the two politicians’ reconciliation after they took divergent paths in the 2024 general election on Feb 14.

Sandiaga ran for vice president alongside Prabowo in the 2019 presidential election, which they lost to President Joko 'Jokowi' Widodo and Vice President Ma’ruf Amin. He later shifted his allegiance to the Muslim-based United Development Party (PPP) after parting ways with Prabowo’s Gerindra Party.

For this year’s election, he joined the rival camp backing Ganjar Pranowo of the Indonesian Democratic Party of Struggle (PDI-P). Wearing traditional Muslim attire in the distinctive green of the PPP, Sandiaga and his wife Nur Asia arrived on Wednesday (April 10) evening at Prabowo’s residence on Jl. Kertanegara in South Jakarta, CNN Indonesia reported.

Prabowo hosted a private gathering that day to celebrate Aidilfitri, also known locally as Lebaran, and welcomed a number of prominent guests including vice president-elect and Surakarta Mayor Gibran Rakabuming Raka, the eldest son of President Jokowi.

"I’m here for the Lebaran celebration only,” Sandiaga briefly told reporters afterward, as quoted by CNN Indonesia.

Sandiaga has hinted several times at a possibility that the PPP could realign with Prabowo, saying the party was open to supporting the incoming government to take an active part in building the nation.

For the first time since its establishment in 1973, the PPP failed to secure a seat at the House of Representatives in the 2024 legislative election when it won 3.87 per cent of the vote, just 0.13 percentage point shy of the 4 per cent electoral threshold.

The party is challenging the results of the legislative election at the Constitutional Court. - The Jakarta Post/ANN

Tags / Keywords: Indonesia , Sandiaga , Prabowo

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