Indonesia Looks to Strengthen Tourism to Offset Conflict Impact
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.
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.
Tags: Keywords:Related Articles
Rupiah Edges Toward Rp 18,000 as Riyadh Attacks Rattle Markets
Rupiah weakens to Rp 17,913 per dollar as Fed rate hike fears, Middle East tensions and MSCI uncertainty weigh on sentiment.Oil Supply Fears, US Inflation Data Drag Indonesian Stocks Down 2.59%
Indonesian stocks plunged 2.59% as Middle East tensions fueled oil supply fears and investors awaited US inflation data.Indonesian Stocks Sink Below 6,000 at Midday as Oil, Geopolitical Risks Weigh
Indonesian stocks fall 1.94% below 6,000 as Middle East tensions fuel risk aversion and technical indicators point to further losses.Indonesia Stocks Slip After Late Sell-Off Wipes Out Intraday Gains
Indonesia's JCI fell 0.3% after a late-session sell-off erased gains built earlier in the day as investors weighed domestic and global cues.Indonesia Stocks Buck Regional Selloff on Healthy Debt Outlook
Indonesia stocks rose 1.1%, bucking regional losses as investors welcomed healthy external debt data despite global tensions.Jakarta Stocks Drop Nearly 1% as Geopolitical Fears Overshadow MSCI Hopes
JCI fell 0.98% as Middle East tensions and investor caution ahead of MSCI's review weighed on sentiment.ASEAN+3 Growth Seen Slowing to 4% Amid Middle East Risks: AMRO
AMRO expects ASEAN+3 growth to slow to 4% as Middle East tensions, oil prices, and tariff uncertainty cloud outlook.Investors Unconvinced by Government Efforts as JCI Falls Nearly 2%
JCI fell 1.85% as Middle East tensions, weak China data, and a rupiah slide past 17,600 rattled investors.JCI Sinks as Rupiah Slides Past Rp 17,600 Amid Global Market Rout
JCI fell 1.4% at Monday’s open as the rupiah neared Rp 17,600 per dollar amid oil price spikes and global risk-off sentiment.JCI Drops 0.92% Amid Iran Conflict Escalation, MSCI Wait-and-See
JCI closed down 0.92% on Monday as rising Middle East tensions and MSCI rebalancing concerns dampened investor sentiments.The Latest
Chandra Asri Group Receives Trade Finance Excellence Award, Reinforcing Its Role in Indonesia’s Industrial Development
Chandra Asri Group receives the Trade Finance Excellence Award at CIMB Niaga Business Summit 2026.AEON MALL Deltamas Brings 11 Sports and Creative Competitions to AEONLYMPIC 2026
AEON MALL Deltamas hosts AEONLYMPIC 2026, featuring 11 sports and creative competitions, with more than 3,100 participants.Indonesian Stocks Extend Losses for Third Day, Fall 3.64% to 4,996
Indonesian stocks fell 3.64% on Monday, extending losses for a third straight session amid MSCI concerns and tighter trading limits.Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore
Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.Jakarta Outranks Amsterdam in Global Public Transport Survey
Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.Most Popular
