Indonesia shifts away from mass tourism while introducing mitigation measures to sustain growth, focusing on high-value segments, market diversification, and resilience amid geopolitical uncertainty.
Indonesia’s Ministry of Tourism is advancing a revised tourism strategy that moves away from mass tourism while addressing the impact of global geopolitical tensions on the sector’s performance.
Widiyanti Putri Wardhana, Minister of Tourism, stated that the new approach focuses on strengthening Indonesia’s tourism industry’s competitiveness through more adaptive and targeted policies. “These measures are important to maintain the competitiveness of Indonesia’s tourism sector amid a global situation that requires responsive and adaptive strategies,” she said during the national webinar “Tourism Under Fire”.
Geopolitical tensions, particularly in the Middle East, are already affecting airline operations, including long-haul route adjustments and increased travel costs due to higher fuel prices. These developments are expected to impact international travel flows to Indonesia.
Government estimates indicate that the direct impact on inbound tourism could range from 4,700 to 5,500 international arrivals per day, with potential daily foreign-exchange losses of Rp157.9 billion to Rp184.8 billion if conditions persist.
To mitigate these risks, the government is prioritising diversification of source markets. Promotional efforts are being intensified in Southeast Asia, East Asia, Australia, and India, where connectivity remains relatively stable. Campaigns also position Indonesia as a safe and stable destination.
At the same time, the shift away from mass tourism aligns with a stronger focus on higher-value travel segments, including wellness tourism, golf tourism, shopping tourism, and curated travel experiences, targeting visitors with higher spending potential.
Connectivity remains a central component of the strategy. The government is optimising direct air routes, including Amsterdam–Jakarta and Amsterdam–Denpasar services operated by Garuda Indonesia, aiming to attract European travelers ahead of the spring and summer travel seasons.
Digital promotion based on data analytics is also being expanded to enhance targeting efficiency and improve campaign effectiveness across international markets.
Domestic tourism is being reinforced to sustain economic activity. The ministry is promoting travel within Indonesia, including tourism events in border regions, while leveraging repeat visitation from nearby markets, such as Singapore, to the Riau Islands.
The strategy includes cross-ministerial coordination involving the transportation, immigration, and finance ministries, with policy options such as increasing airline seat capacity, improving airfare affordability, and introducing visa-free access for selected markets under consideration.
According to official data, Indonesia recorded 15.39 million international arrivals in 2025, generating US$18.27 billion in foreign exchange revenue. Visitors from Europe, the Middle East, and the Americas accounted for 21.7% of arrivals but contributed 34.7% of total tourism receipts.
Additional growth is expected from East Asia, with airlines including China Airlines, Spring Airlines, and China Southern Airlines planning to increase frequencies and launch new routes to Jakarta and Bali from May 2026.
Airlangga Hartarto, Coordinating Minister for Economic Affairs, confirmed that tourism contributed Rp945.7 trillion, or 3.97%, to Indonesia’s GDP in 2025, supported by 10.7% year-on-year growth in international arrivals and employment of approximately 25.91 million people.
Amid ongoing global uncertainties, the government is also promoting micro-tourism initiatives and positioning Indonesia as a high-end destination offering competitive value, alongside targeted segments such as digital nomads.