Whenever the world thinks of tourism in Indonesia, it is almost automatic that their thoughts turn to either Bali or Jakarta, the country’s two primary hubs for travellers.
But there is a lot more to Indonesian tourism than just paradisiacal getaways or urban adventures; also, Indonesia is giving the global tourism industry much to think about.
In this feature, we highlight the growth of the Indonesian tourism sector along with the wisdom it imparts to its peers throughout the globe.
Tourism as a socio-economic driver for Indonesia
To go by the World Travel & Tourism Council (WTTC)’s 2024 Economic Impact Research report, the tourism sector contributed 4.8 percent to the national economy as of end-2023 and is poised to increase that contribution to around 5.3 percent by 2034.
Tourism also generated over 543,000 employment opportunities at the time, bringing its total manpower headcount to approximately 12 million, just 2.3 percent short of the total last seen in 2019.
It should also be noted that UN Tourism included ten Indonesian areas in its list of Super Priority Destinations, particularly the heritage sites of Lake Toba and Borubudur, as well as regenerative tourism zones like the Riau Islands.
These areas offer significant tourism-centric investment opportunities worth more than US$13 billion.
Needless to say that, with its diverse range of cultures and belief systems, Indonesia has something to offer just about everyone.
Why Indonesia is so appealing for tourism investment
Indonesia drew in US$60 billion in foreign direct investments (FDIs) across various sectors.
Tourism received around US$5.6 billion from these FDIs as of end-2024, on top of US$10.5 billion from domestic investors.
With this in mind, why exactly are both domestic and foreign investors so willing to put their money into the Indonesian tourism sector?
There are actually four reasons why; namely:
- Constant government support The Indonesian government has long considered tourism a socio-economic growth centre, so it isn’t surprising that it has thrown a great deal of support towards the sector. Indeed, Indonesian tourism boasts of a number of long-term programmes dedicated to destination management, area development, human resource training, as well as related infrastructure;
- Market diversity Indonesia’s rich tourism landscape caters to every budget, from luxury resorts to eco-lodges and cultural experiences. We have seen these in the backpackers seeking enlightenment in Borubudur, business travellers making their way to Jakarta, Surabaya, Medan, and Bandung; as well as pleasure seekers looking for the ultimate in island luxury in Bali;
- A skilled workforce In a report from April 2025, the World Bank noted that the Indonesian Tourism Development Priority Programme trained 18,000 participants from 155 tourism villages, areas specifically designated as cultural / heritage zones. This unique initiative helped 65 tourism villages bring development plans to fruition, resulting in greater income and the generation of employment for around 1.2 million individuals. This unique approach likewise builds pride of place among locals, encouraging them to perform their best to make their locations stand out;
- Emergent niche markets Related to market diversity, there really is something for everybody in Indonesia and the possibilities are endless. Ecotourism and adventure tourism, in particular, are coming to the forefront of the sustainable tourism sector, as Indonesian offerings deliver on the promise of both thrilling experiences and the opportunity to meet local flora and fauna first-hand. Luxury hospitality is also becoming a major draw, with the sub-sector bringing in US$5.2 billion as of end-2025.
In an increasingly competitive industry where every country is stepping up its game with regard to tourism offerings, Indonesia has been quieter than most of its regional neighbours.
However, that silence should not be construed as absence: indeed, Indonesia is turning the game on its head, playing up its strengths to draw the world into its borders.
