The Indonesian tourism industry is experiencing significant growth, with international tourist arrivals reaching 7.75 million between January and July 2024, a notable 20.75 percent increase compared to the same period last year. This surge in tourism has driven the government to set ambitious targets, aiming for tourism foreign exchange earnings to reach USD 22.10 billion, or approximately IDR 342 trillion, by 2025.
This target represents a substantial increase from the USD 14.63 billion achieved in 2023 and exceeds the 2024 outlook of USD 17.54 billion. Moreover, the government is also focused on boosting the tourism sector’s contribution to the country’s gross domestic product (GDP), setting a goal of 4.6% by 2025, up from the 4.5% forecasted for 2024.
To meet these lofty goals, the Ministry of Tourism and Creative Economy (Kemenparekraf) is prioritizing the development of quality and sustainable tourism. According to Ni Wayan Giri Adnyani, Secretary of Kemenparekraf, the government has outlined 11 major programs designed to elevate the nation’s tourism sector.
“These programs include providing incentives for the development of thematic tourism destinations that appeal to a global market, enhancing the tourism promotion management system, and ensuring that sustainable tourism practices are implemented across all destinations,” Giri Adnyani explained during a working meeting with Commission X of the Indonesian House of Representatives (DPR RI) on Friday (30/8/2024).
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The government’s comprehensive plan also emphasizes the importance of integrating the blue-green-circular economy principles into tourism businesses, improving infrastructure and accessibility in tourism areas, and ensuring that all developments adhere to sustainable principles.
“We’re also focused on enhancing institutional capacity, supporting disaster-resilient destinations, and securing alternative financing, such as blended finance, to support these initiatives,” Giri Adnyani added.
Beyond tourism, the government has its sights set on the creative economy, aiming for it to account for 7.92% of GDP by 2025. To achieve this, Giri Adnyani revealed that the focus will be on developing content-based creative products, implementing gastro-diplomacy, and mainstreaming sustainable economic practices.
“These efforts are part of seven major programs, each carefully aligned with the responsibilities of our respective working units,” she noted.
These seven programs include strengthening the creative economy ecosystem by fostering new sources of economic growth, integrating creative economy data, and accelerating the development of intellectual property ecosystems.
Additional priorities involve expanding and enhancing market share both domestically and globally, building the capacity and capability of creative industry players through research-based initiatives, developing creative hubs, clusters, and centers of excellence, and fortifying regulations, policies, and institutions related to the creative economy at both national and regional levels.
As Indonesia pushes forward with these tourism foreign exchange earning plans, the government’s focus remains clear: to not only boost the country’s economic growth but to do so in a way that is sustainable, inclusive, and globally competitive.
