Jakarta. The Indonesian Tourism Industry Association (GIPI) on Wednesday called on the government to increase spending on tourism promotion, arguing that inadequate funding and structural barriers are preventing Indonesia from realizing the sector's full potential.

GIPI Chairman Hariyadi Sukamdani said more aggressive promotional campaigns were essential to attracting foreign visitors and supporting the government's target of achieving 8% economic growth by 2029. He stressed that tourism promotion could not be left entirely to private businesses and required stronger government backing.

“Tourism promotion cannot be carried out solely by tourism businesses or the private sector. It must always be supported by the state,” Hariyadi told a news conference in Jakarta.

He pointed to the substantial revenue generated by the tourism industry for both central and regional governments, arguing that the sector's contribution was not being matched by adequate promotional funding.

According to data presented by GIPI, the government collected approximately Rp 5 trillion ($278.78 million) in visa fees in 2024.

At the regional level, the Jakarta administration collected Rp 1.9 trillion in hotel taxes and Rp 3.95 trillion in restaurant taxes in 2023.

By comparison, the Tourism Ministry's total budget for 2026 stands at just Rp 1.85 trillion -- significantly less than the revenue generated by these individual sources.

GIPI called for greater public investment in tourism promotion, arguing that a portion of the revenue generated by tourism-related activities should be used to support the industry's continued growth.

Structural Barriers Hamper Competitiveness
Beyond insufficient promotional funding, GIPI identified several structural challenges undermining Indonesia's tourism competitiveness, including high domestic aviation operating costs, rising labor expenses, costly and complicated licensing procedures, and limited access to bank financing.

The financing constraints have made it particularly difficult for tourism businesses seeking to expand following the Covid-19 pandemic.

The call for increased promotional spending comes as foreign tourist arrivals continue to recover.

According to GIPI, Indonesia welcomed approximately 10.57 million foreign tourist visits between January and August 2026, an increase of 5.38% from the same period last year.

Data presented by the association showed that Indonesia recorded the second-highest growth rate in foreign tourist arrivals among ASEAN countries, behind Vietnam.

GIPI also noted that the rupiah's depreciation against the US dollar could make Indonesian destinations more affordable and attractive to international travelers.

However, the association warned that Indonesia would need more aggressive promotional campaigns to capitalize on the currency advantage and translate it into higher visitor numbers.

GIPI called for targeted promotional efforts in major source markets, including Malaysia, Japan, South Korea, and Australia.

Separately, GIPI and its network of industry associations plan to launch their own promotional initiatives, offering integrated travel packages to destinations with direct transport connections, including Padang, Medan, Batam, and Bandung.

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