Tourism direct GDP (2023) | Tourism direct employment | Travel exports (2024) |
|---|---|---|
4.7% of total GDP (up 0.9 percentage points since 2022) | - | 42.8% of total service exports (up 1.2 percentage points since 2023) |
OECD Tourism Trends and Policies 2026
National tourism strategy: National Tourism Strategic Plan 2025-2029
Responsible government agency: Ministry of Tourism
National tourism budget: IDR 1.9 trillion (2026)
Key tourism policy priorities and actions:
Diversifying the tourism offer – Building tourism destinations to improve equality and economic development, including through the Tourism Village Development initiative to enhance the tourism offer while better dispersing visitors outside of major tourism hubs.
Improving the quality of tourism – Implementing the Quality Tourism Development Strategy to attract high-spending tourists, focusing on special interest areas like gastronomy, marine tourism, wellness, traditional textiles, art and design.
Developing tourism events – Organising quality and iconic events which enhance destination attractiveness and economic impact and promote Indonesian tourism on the global stage.
Tourism is a key driver of economic growth, regional development and employment in Indonesia. In 2023, the tourism sector accounted for 4.7% of the country’s GDP, while employment in tourism industries reached 24.4 million people or 17.5% of total employment. Travel receipts reached USD 16.7 billion in 2024, up 19.3% compared to 2023.
In 2025, Indonesia recorded 15.4 million international visitors, up 10.8% compared to 2024. The top source markets were Malaysia (17.2%), Australia (11.4%), and Singapore (9.9%).
Domestic tourism continues to play an important role in Indonesia. In 2024, the country recorded 1.0 billion domestic visitors, a 21.6% increase compared to 2023.
The Ministry of Tourism is responsible for tourism in Indonesia. The Ministry collaborates regularly with various stakeholders, such as the Ministry of National Planning, Ministry of Micro, Small, and Medium Enterprises, National Search and Rescue Agency, Ministry of Transportation, Ministry of Manpower, Ministry of Forestry, and the Ministry of Environment. The Ministry also collaborates regularly with the Ministry of Public Works and Housing in the development of tourism destinations, and especially in Indonesia’s priority and regenerative tourism destinations.
The Co-ordinating Ministry for Economic Affairs has a Deputy for Industry, Manpower, and Tourism Co-ordination, which is responsible for synchronising and co-ordinating the preparation, formulation, and implementation of policies, as well as overseeing the execution of policies related to national development issues and agendas in the fields of industry, employment, and tourism. Within this framework, the Ministry of Tourism operates under, and is formally co-ordinated by, the Co-ordinating Ministry for Economic Affairs, ensuring policy coherence, alignment of national priorities, and integrated implementation across sectors.
Horizontal co-ordination is achieved through partnerships between ministries, national tourism associations (Indonesian Hotel and Restaurant Association, Indonesian Tourism Industry Association, Association of the Indonesian Tours and Travel Agencies), MSMEs, and the private sector. Vertical co-ordination is maintained through joint forums, such as the Clean Tourism Task Force, Risk-based Business Licensing Supervision Communication Forum, Indonesian Tourism Journalist Association, and policy alignment between central and regional governments via the State and Regional Budgets.
The tourism budget increased to almost IDR 1.9 trillion in 2026, up from IDR 1.5 trillion in 2025, to enable high performance targets, including increased foreign visitor and exchange targets.
Source: OECD, adapted from the Ministry of Tourism, 2026.
Indonesia has entered a new phase of tourism development planning aligned with the national vision of Indonesia Emas 2045. This phase is guided by three key national planning instruments: the National Long-Term Development Plan 2025–2045, the National Medium-Term Development Plan 2025–2029, and the National Tourism Strategic Plan (Rencana Strategi Kementerian Pariwisata) 2025–2029. These frameworks position tourism as a strategic driver of inclusive, resilient, and sustainable economic transformation. Under the long-term development agenda, tourism is expected to contribute significantly to national competitiveness, and support structural economic transformation and regional development, with indicative targets for tourism of an 8% contribution to GDP by 2045 and foreign exchange earnings of up to USD 100 billion.
For the 2025–2029 period, tourism development is guided by six main policy directions:
Improving the quality of tourism resources and institutions, including human capital development, organisational capacity, and institutional effectiveness.
Developing competitive, sustainable tourism destinations and infrastructure, with attention to carrying capacity, accessibility, amenity quality, and regional balance.
Strengthening investment for quality tourism development, supported by regulatory reform, financing instruments, and public–private collaboration.
Using strategic and data-driven marketing to stimulate tourism demand, including digital promotion, branding, and market diversification.
Developing high-quality tourism events, including MICE, cultural, sports, and thematic events that enhance destination attractiveness and economic impact.
Improving the governance of the tourism sector, including policy co-ordination, regulatory quality, monitoring and evaluation, and the strengthening of the Ministry of Tourism’s role as a policy leader and co-ordinator.
The Plan is supported by a set of targeted policies and instruments that guide tourism development in an integrated and sustainable manner. These include:
National Tourism Destination Master Plan (Rencana Induk Destinasi Pariwisata Nasional), which provides comprehensive direction for the planning, development, management, promotion, and control of tourism destinations at the national and regional levels, ensuring alignment with spatial planning, environmental carrying capacity, and local development priorities.
Quality Tourism Development Strategy, which aims to increase industry competitiveness by enhancing destination management, service standards, visitor experience, and community participation.
Tourism Sector Decarbonisation Roadmap, which supports the transition towards a low-carbon, climate-resilient tourism sector through emissions reduction, resource efficiency, and climate adaptation measures, in line with national climate commitments.
National Tourism Information System, designed to strengthen data governance and digital integration across the tourism sector. This system supports evidence-based policymaking, destination management and the acceleration of digital tourism transformation, including the integration of tourism crisis management data and early warning mechanisms.
Tourism 5.0 Framework, which promotes the use of digital technologies, data analytics, and AI to enhance the entire visitor journey, from inspiration and planning to experiencing and sharing, while improving productivity, inclusiveness, and resilience across the tourism value chain.
The increase in AI and big data necessitates that the Indonesian tourism sector adapts to technological advancements to remain globally competitive. One of the initial steps in implementing Tourism 5.0 is the integration of AI into the indonesia.travel platform, which transforms into an all-in-one travel solution for the country. It is evolving into a smart, personalised, responsive, and practical travel assistant called MaiA (Meticulous Artificial Intelligence of Indonesia), which acts as a travel planner and companion and assists tourists throughout every stage of their journey: dreaming, researching/planning, booking, experiencing, and sharing.
Indonesia has transitioned its tourism focus towards regenerative tourism, emphasising quality, sustainability, and community impact. This is supported by the Clean Tourism Movement. In 2025, the Ministry of Tourism collaborated with local governments and strategic partners to improve destination cleanliness by performing awareness campaigns through clean action. The Movement was successfully implemented in fourteen destinations across ten provinces, involving more than 9 000 participants.
Indonesia is also continuing to build the Tourism Village Development initiative, which aims to diversify tourism and enhance the tourism offers while better dispersing visitors outside of major tourism hubs. The Tourism Village Programme is a nationwide initiative to transform rural areas into quality tourism destinations. The goal is to promote community-based tourism rooted in local cultural wisdom, sustainability and economic inclusivity. The programme aligns with Indonesia’s national development goals and forms one of twelve strategic action plans for economic equality and poverty eradication in Indonesia. As of January 2026, 6 199 tourism villages have been registered in the national database.
To improve the quality of tourism resources and develop a competitive tourism sector, a task force was launched focused on regulating short-term rentals and enforcing stricter licensing and zoning controls (see box below).
Short-term rental listings in Bali surged by 162% between 2022 and 2025, pushing legal villa occupancy rates below 30% and threatening the viability of licensed operators. This rapid growth in informal rentals has also led to unfair competition, reduced tax revenues, and contributed to unmanaged development in some local communities.
To tackle this, the Indonesian Government and the Bali Provincial Government jointly launched a central-local task force focused on regulating short-term rentals and enforcing stricter licensing and zoning controls based on Circular Letter of the Minister of Tourism Number 4 of 2025 concerning the Application for Registration and Licensing of the Provision of Tourism Accommodation. The policy response combines:
Revising local regulations to close loopholes and align them with national laws;
Introducing platform accountability requirements, obliging digital rental platforms to verify hosts’ licenses and share data with tax authorities;
Developing a centralised digital registry to track all licensed short-term rental properties in real time, improving tax collection, and destination carrying capacity management.
Collaboration between central and regional governments to supervise and provide assistance and guidance to illegal investments to encourage them to obtain business legality.
This initiative aims to restore legal villa occupancy rates to around 80%, secure local tax income, and protect the livelihoods of compliant operators. More broadly, the policy supports sustainable destination management by balancing accommodation supply with infrastructure capacity and local community needs.