Tourism Industry in Indonesia: Better than Ever

The COVID-19 pandemic has opened uncovered the great potential of domestic tourism in Indonesia, and it seems that the urge to grow and reap more profits didn’t end with the PPKM (Community Activities Restrictions Enforcement). If you are curious as to how Indonesia’s tourism managed to stay afloat during the global pandemic, we recommend taking a look at our other article on the tourism industry in Indonesia by clicking here. 

So, what are the things we can look forward to from the tourism industry in Indonesia?

Funding Made Easy

Approximately 6.5 trillion rupiah of funds will be disbursed to mainly build infrastructure, accessibility improvements, and amenities at 5 Super Priority Tourism Destinations (DPS), such as Toba Lake and Borobudur Temple. The Indonesian government is ready to go all out for the tourism budget in hopes of attracting 1.4 billion domestic tourist trips and 7.4 million foreign tourists in 2023, which are almost twice the target of 2022. 

With the Indonesia’s tourism industry contributing 4.26 billion dollars to the nation’s foreign exchange earnings in 2022, it is of no surprise that the government is on the lookout for every opportunity to expand this promising sector as it is expected to grow by 21 billion dollars during 2023-2026 with a CAGR of 11.81%. 

Enjoying the Post-PPKM Feast

The moment that all Indonesians have been waiting for, President Joko Widodo has revoked the PPKM policy at the end of 2022. It’s not just the citizens whom are rejoicing, but also the big players of the tourism industry. Driven by increased mobility of the consumers and increased visits from foreign and domestic tourists, the Central Bureau of Statistics (BPS) announced a cumulative 11.97% growth in performance happening in the accommodation and food & drink sub-sector. 

The Minister of Tourism and Creative Economy, Sandiaga Uno, is also all smiles again. He shared that the occupancy rate of hotel rooms has reached 80-90% in several destinations, which has nearly doubled in just a few months. Considering such a positive response, the government is confident in pushing its tourism village program to create 4.4 million new jobs by 2024. 

The feast doesn’t just end there. If the Indonesian government successfully achieves its tourism targets, the Deputy for Coordination of Tourism and Creative Economy within the Ministry of Maritime Affairs and Investment has said the economic value Indonesia may potentially achieve from its tourism sector is approximately 3.310 trillion rupiah, or the equivalent of 20.9% of its GDP. 

With such positive support from the nation’s government, it is the perfect time for various players within the tourism industry in Indonesia to work hand-in-hand with local government and have a bite of the potential profits. 

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