Tourism Powers Indonesia’s Economy: Here’s How Much It Contributes

The government continues to sustain Indonesia’s tourism growth while expanding business and investment opportunities. This effort is underpinned by the country’s strong economic performance. Indonesia’s solid economic fundamentals are crucial to developing the tourism sector. In the first half of 2026, the Indonesian economy grew by 5.45%, the highest rate among G20 countries. Inflation remained under control at 3.28% in September 2026, while investment rose by 7.2% to IDR 1,010.6 trillion, with more than half of the investment realized outside Java. Economic growth that has remained above 5% for five consecutive quarters reflects the resilience of domestic demand and sustained investment, both of which support national tourism development.

“For the tourism sector, economic stability is crucial because stronger purchasing power encourages domestic travel, while investment supports infrastructure development, accommodation, and service improvements,” said Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo in a written statement on Thursday (October 15, 2026).

Amid mounting pressures on the global tourism industry, Indonesia’s tourism sector has demonstrated relative resilience. In the first half of 2026, international tourist arrivals worldwide grew by only 0.4%, while the Middle East recorded a 22% decline and Southeast Asia experienced a 1% contraction. In contrast, Indonesia recorded growth of 5.71%. From January to August 2026, international tourist arrivals reached 10.58 million, an increase of 5.38% compared with the same period in the previous year, bringing arrivals close to 99% of pre-pandemic levels. This achievement demonstrates that Indonesia’s tourism recovery is continuing and approaching a significant milestone.

Tourism’s contribution is also reflected in domestic economic growth, foreign exchange earnings, and job creation. Throughout 2025, domestic tourist trips reached 1.2 billion, generating US$18.28 billion in tourism foreign exchange earnings and supporting 25.91 million jobs. The sector contributed 3.97% directly to gross domestic product (GDP), while tourism investment reached IDR 73.55 trillion.

This positive momentum continued into 2026. By August, domestic tourist trips had reached 842.15 million, an increase of 4.29%, while tourism foreign exchange earnings totaled US$8.43 billion in the first half of the year. Investment in the tourism sector also grew by 16.64%, more than double the national investment growth rate. These figures further underscore tourism’s potential to drive job creation, regional development, and inclusive economic growth.

To maximize this potential, the government has positioned tourism as a strategic driver of economic growth, in line with President Prabowo Subianto’s Asta Cita, or Eight Aspirations. For 2026, the tourism sector is targeted to attract 16–17.6 million international tourist visits and contribute 4.5–4.7% to GDP. Achieving these targets requires coordinated policies that stimulate demand while improving the quality of tourism services. To stimulate demand and strengthen connectivity, the government is preparing an economic stimulus package worth IDR 26.34 trillion. The package includes transportation discounts and tax incentives to encourage domestic travel. Additional measures include income tax relief for 552,000 hospitality workers, annual skills development programs for 400,000 tourism workers, and expanded visa access and air connectivity. These initiatives aim to improve the affordability, accessibility, and quality of tourism services.

“We also want to highlight the urgency of innovation and efficiency in Indonesia’s tourism sector. The government will develop an ecosystem that encourages tourism businesses to create innovative products at competitive prices,” Dradjad added.

October 15, 2026, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8709204/pariwisata-andalan-ri-genjot-ekonomi-segini-kontribusinya)