Indonesian Tourism: A New Economic Engine Towards 2045
- Aug 3
- 4 min read
Although Indonesia still lags behind Malaysia and Thailand, the tourism sector is beginning to be taken seriously as one of the economic pillars towards 2045. Indonesian tourism was nearly paralyzed during the pandemic era, but foreign tourist (wisman) visits have continued to rise over the past two years. Foreign exchange earnings and job creation have also increased. The weakening rupiah—which is inherently bad news—has actually made vacations to Indonesia relatively more affordable in the eyes of foreign tourists, helping to drive this momentum.
In mid-July 2026, the rupiah weakened to around IDR 17,900–IDR 18,100 per US dollar due to a series of external pressures such as geopolitical tensions, interest rate policies, and rising global oil prices. For foreign tourists, this depreciation actually translates into greater purchasing power: accommodation, food, local transportation, and souvenir shopping become relatively cheaper compared to stronger currencies. This is one of the supporting factors why foreign tourist visits continue to grow despite global economic uncertainty, as well as the reason why the tourism sector is often referred to as a “stabilizer” when the manufacturing export sector weakens.
Indonesian Tourism Snapshot 2025
Indicator | Value |
Foreign tourist visits | 15.39 million (+10.8% yoy) |
Domestic tourist trips (wisnus) | 1.2 billion trips (+17.55% yoy) — 7-year record |
Tourism foreign exchange | US$ 18.28–18.91 billion (+13.17% yoy) |
Workforce absorbed | 25,91 million people (+3.64% from 2024) |
Tourism sector investment | ±Rp73,6 trillion (+56.05% yoy) |
Contribution to 2025 GDP | 3.97% (2026 target: 4.5–5%) |
Sumber: Statistics Indonesia (BPS), Indonesia Ministry of Tourism (Kemenpar RI), and Bank Indonesia (BI)
Tourism has one of the largest multiplier effects among economic sectors. A single visiting tourist activates an income chain ranging from airlines, hotels, restaurants, local transport, handicrafts, to MSMEs in tourist destinations. It is not just a single business actor enjoying the results.
On the Indonesia Stock Exchange (IDX), this multiplier is reflected in the performance of 30+ cross-sector listed companies: from airlines like Garuda Indonesia (GIAA), hotel operators like Pembangunan Jaya Ancol (PJAA) and Jakarta Setiabudi Internasional (JSPT), to tourism transport providers like Blue Bird (BIRD).
Profile of Foreign Tourists
In addition to the boom in domestic tourists throughout 2025—which supported the occupancy of domestic hotel chains like Hotel Sahid Jaya (SHID), Red Planet / Monoloog Hotel (PSKT), and urban entertainment operator Cinema XXI (CNMA)—foreign tourist visits were equally significant. A number of foreign F&B franchises managed by MAP Boga Adiperkasa (MAPB) are also often destinations for foreign tourists.
In 2025, based on BPS and Kemenpar RI data, ASEAN tourists dominated with a 41.3% share, led by Malaysia (~2.65 million visits) followed by Singapore (~1.52 million visits). Outside ASEAN, Australia contributed ~1.75 million visits and China ~1.34 million visits.
The Average Spending Per Arrival (ASPA) for foreign tourists throughout the year was recorded at around US$ 1,267 per visit, above the target of US$ 1,220, with a fairly consistent spending pattern:
Accommodation and hotels: largest share, around 37–42% of total spending
Food and beverage: around 19–20%
Shopping and souvenirs: ~11%
Entertainment and activities: ~9%
The remainder is spread across local transport, domestic flights, and vehicle rentals
This share of shopping and souvenirs also supports the growth of local retail and consumer products—including cosmetics and fragrances—where listed companies such as Mandom Indonesia (TCID), Mustika Ratu (MRAT), Martina Berto (MBTO), and Kino Indonesia (KINO) could potentially benefit from tourist spending as part of souvenirs and personal care products.
“Wonderful Indonesia” and Major Targets of the Ministry of Tourism
The Indonesian tourism promotion campaign under the “Wonderful Indonesia” umbrella divides the country's appeal into five categories: Nature, Culinary & Wellness, Arts & Heritage, Recreation & Leisure, and Adventure. The major targets of the Ministry of Tourism over the next few years include:
16–17.6 million foreign tourist visits in 2026, with a medium-term ambition to exceed 20 million+ per year.
Maintaining GDP contribution in the range of 4.5–5% in 2026.
Sport tourism as a new focus, modeling after Anfield Stadium tours in Liverpool that attract nearly 400,000 tourists annually. Listed companies like MNC Tourism (KPIG)—focusing on tourism and leisure with a portfolio of premium golf courses in Bogor, West Java, and Tabanan, Bali—may potentially gain exposure.
Indonesia Quality Tourism Fund (IQTF), a new financing scheme for the sector’s fiscal sustainability.
PPh DTP tax incentive for tourism workers for the 2025–2026 period.
Upskilling 400,000 tourism workers per year.
Accelerating inter-airport connectivity, new airports, relaxation of visa facilities (19 countries are now included in the Visa-Free Visit scheme), and supporting land connectivity projects involving state-owned enterprise (SOE) contractors.
Tourism Sector in the Golden Indonesia 2045 Vision
Tourism is explicitly positioned as a key productive sector in the Golden Indonesia 2045 Vision to achieve the top 5–10 global economies by the centenary of independence. In the National Long-Term Development Plan (RPJPN) 2025–2045, tourism and the creative economy are established as new sources of economic growth alongside manufacturing, sharia economy, agriculture, blue economy, and MSMEs, and are included in the National Key Development Indicators.
Coordinating Minister for Economic Affairs Airlangga Hartarto, opening the 2026 Tourism National Coordination Meeting, emphasized the target for tourism’s contribution to rise to 5% of national GDP by 2029, with foreign exchange projections reaching US$ 39.4 billion—equivalent to major commodity exports like coal and palm oil. Indonesia’s Travel and Tourism Development Index (TTDI) rank is also targeted to enter the top 20 globally.
Real Momentum, Real Challenges
Indonesian tourism is growing with real momentum. Visits have risen for two consecutive years, foreign exchange has expanded, employment has broadened, and the government has positioned tourism as a pillar of productivity towards Golden Indonesia 2045, backed by long-term official targets (8% of GDP in 2045) stated in the RPJPN Key Development Indicators. A weaker rupiah, rather than being mere bad news, acts as an added draw for foreign visitors.
However, challenges remain significant: Indonesia still lags far behind Malaysia and Thailand in absolute visit numbers. The target contribution of tourism to GDP—whether 5% by 2029 or 8% by 2045—requires extra effort, not merely automatic realization through grand visions. For capital market investors, this momentum is worth monitoring through the tourism-related value chain of listed companies while independently assessing each company's risks and fundamentals.
Disclaimer: This content is created for educational purposes or service promotion, and does not constitute a recommendation to buy or sell any specific Securities. Any risks arising from investment decisions made based on the information in this publication are the sole responsibility of the respective audience. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (Otoritas Jasa Keuangan / OJK).
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