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Indonesia Looks to Strengthen Tourism to Offset Conflict Impact

The Jakarta Globe
March 16, 2026 | 10:29 pm
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Chief Economic Affairs Minister Airlangga Hartarto. (Photo Courtesy of Coordinating Ministry for Economic Affairs)
Chief Economic Affairs Minister Airlangga Hartarto. (Photo Courtesy of Coordinating Ministry for Economic Affairs)

Jakarta. Indonesia is seeking to strengthen its national tourism sector amid the Middle East conflict.

The tourism sector has proven its role as a robust engine of national economic growth, contributing Rp 945.7 trillion ($55.7 billion), equivalent to 3.97% of Indonesia's total GDP, in 2025, according to government estimates. This success was driven by a surge in foreign tourist arrivals, reaching 15.39 million people, representing a 10.7% year-on-year growth. At a macro level, this sector has secured $18.91 billion in foreign exchange and provides a livelihood for 25.91 million workers.

The resilience of the tourism sector is currently being tested by the turmoil in the Middle East, which has disrupted global connectivity.

The Ministry of Tourism projects a potential loss of 5,500 foreign tourists and a potential loss of Rp 184.8 billion in foreign exchange per day if not properly mitigated. 

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The latest report from InJourney Airports, from late February to March 10, 2026, recorded disruptions on nine international routes at Soekarno-Hatta Airport and Ngurah Rai Airport, impacting the mobility of 47,012 passengers. This challenge is further complicated by the rising price of aviation fuel.

"Indonesia needs to immediately implement reforms to mitigate losses due to the global crisis and build a foundation for competitive, resilient, and highly competitive tourism and destinations on the international stage," senior minister Airlangga Hartarto said.

According to Airlangga, the government has taken measures to ensure Indonesian tourism remains on par with other countries amid the latest developments. These include expanding the visa-free visit policy.

A sstudy by the World Travel and Tourism Council shows the implementation of the Visa-Free Visit policy in Indonesia to 169 countries since 2015 has successfully spurred tourism growth by up to 15% per year and directly created 400,000 new jobs in the tourism sector.

The Ministry of Tourism has also identified 20 potential countries as a rapid response to the current situation.

Indonesia needs to strengthen its domestic market and utilize the Eid al-Fitr holiday momentum as a primary safety net by adopting the concept of micro-tourism, where destinations within a short travel radius are packaged to provide immersive experiences. 

The government has provided transportation discounts during the 2026 Eid al-Fitr holiday period and a work from anywhere policy to support tourist movement to various regions.

Airlangga also highlighted the need to negotiate new international routes, strengthen Indonesia's branding as a safe and stable destination, and promote destinations for digital nomads to seize the migration opportunities of professional digital talent in regions such as Jakarta, the Riau Islands, or the Kura-Kura special economic zone (SEZ) in Bali, which have the potential to offer safe and high-tech work ecosystems.

"With the current exchange rate volatility, this should be a hidden opportunity to attract tourists, as they can get more value for their money. Therefore, marketing that highlights Indonesia as a high-end, affordable destination needs to be emphasized," Airlangga said.

He called for everyone to work together to ensure Indonesia’s tourism ecosystem remain resilient.

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