Indonesia Targets Tourism Sector Expansion to Bolster National Economy
Jakarta, The Gulf Observer: Indonesia is intensifying efforts to enhance the contribution of its tourism sector to the national economy, National Development Planning Minister Rachmat Pambudy announced during the CORE Economic Outlook 2025 in Jakarta.
Acknowledging the sector’s significant multiplier effect, Pambudy emphasized the importance of both international and domestic tourism as key drivers of economic growth. “Tourists play a vital role in bolstering our economy, and we must prioritize the sector as a buffer for sustainable economic progress,” he said.
By the third quarter of 2024, Indonesia had attracted 10.7 million foreign tourists, each spending an average of USD 1,375.08 per visit. Domestic tourism also demonstrated robust activity, with 757.96 million trips recorded by September 2024.
However, Deputy Minister for Economic Affairs Amalia Adininggar Widyasanti noted that Indonesia’s foreign exchange earnings from tourism lag behind regional competitors. For instance, Indonesia generates USD 17 billion annually from tourism, compared to Thailand’s USD 64.3 billion. Additionally, Indonesia’s average tourist spending of USD 1,050 per visit trails Thailand’s USD 1,610 and Australia’s USD 5,100.
To address these gaps, Indonesia has set ambitious targets for the sector by 2029, including:
- Increasing foreign exchange earnings to USD 32–39 billion annually.
- Creating 29 million tourism-related jobs.
- Achieving a 5% contribution to GDP and a 14.4% rise in community welfare.
In the next five years, the ministry aims to:
- Raise average foreign tourist spending to USD 1,600 per visit.
- Boost tourism investments to IDR 88.7 trillion.
- Generate IDR 49.1 trillion in revenue from the 13 Priority Tourism Destinations.
With these goals, Indonesia seeks to position itself as a more competitive player in the global tourism market, leveraging its rich cultural and natural heritage to drive sustainable economic growth.
