Indonesia seeks to boost tourism sector’s contribution to national economy

Indonesia’s minister for national development planning declared that the government seeks to amp up the contribution of the tourism sector to the country’s economy.

Minister Rachmat Pambudy pointed out how tourism is a key buffer to the national economy, and thus requires keen attention from relevant authorities.

Addressing participants at the CORE Economic Outlook 2025 in Jakarta on Saturday, 23rd November, Pambudy said: “We know that tourists have a significant multiplier effect on the Indonesian economy. Both international and domestic tourists can be relied upon as a buffer for our economic growth.”

Significant growth in the sector

As of the end of Q3-2024, Indonesia drew in around 10.7 million overseas travellers who spent an average of US$1,375,08 each during their trips.

The domestic tourism sector likewise clocked around 757.96 million trips as of 30th September.

Cashing in on tourist spending

Deputy minister for economic affairs Amalia Adininggar Widyasanti also called authorities’ attention towards the relatively low foreign exchange earnings from foreign tourists visiting Indonesia, compared to Thailand, Malaysia, and Singapore.

According to Widyasanti, Indonesia’s total foreign exchange from tourism is US$17 billion per year, while Thailand generates US$64.3 billion annually.

The challenge now is how the country can boost tourist spending to the level of its regional neighbours.