The concept of luxury revolves around encountering a level of comfort, elegance, and indulgence far removed from one’s everyday experience.

When the concept of luxury hospitality comes up, this can be defined further as diving into indulgent experiences that aren’t just more elevated than what one is used to, but are often found in locations far removed from one’s home or usual sphere of activity.

In Indonesia’s case, as in many Southeast Asian nations, the bulk of luxury hospitality providers can be found in major cities or prime resort destinations.

While this may have been appealing in the early years of the 20th century, this has also contributed greatly to the issue of overtourism as travellers flock to these areas to get their taste of the good life.

For Indonesia, the global hospitality brands setting up shop in the region’s largest archipelago are making a well-calculated move to lesser-known destinations that also have their own range of attractions to lure in world-weary travellers.

Luxury hospitality in Indonesia

Earlier this month, Helmi Shemi wrote about the way Indonesian luxury hospitality has surged in recent years thanks to the return of high net-worth travellers to Bali.

Per the latest figures from CoStar Group’s hotel research arm STR,  luxury hotel occupancy in Indonesia has fully recovered to pre-pandemic levels as of end-March 2026.

At the same time, hotel revenues throughout the country are now up by over 40 percent from where they were in 2019, and it’s the luxury segment that has been driving the growth for the past three years.

A recent report from Ken Research also shows that the Indonesian luxury hospitality market is currently worth US$5 billion as of end-2025, driven by a perfect storm of higher foreign arrivals, a significant increase in disposable income among both locals and foreign visitors, as well as the growing appeal of luxury escapes in domestic travel.

The report also shows that both domestic and international travellers seeking luxury accommodations are in it for indulgent immersion, cultural authenticity, as well as personalised amenities and services.

Beyond known destinations

There are three specific regions where luxury hospitality providers are coming in, and not only will these boost the visibility of these locations, but they also stand to improve their economies by providing revenue and opportunities for employment.

It is also worth noting that these regions are recognised by the national government as key priority areas for tourism development, coming under the category of super-priority destinations.

These are as follows:

• Central Java for cultural tourism fans As Indonesia’s cultural heartland, this region blends ancient history with unmatched luxury as it is home to the Borobudur Temple, a UNESCO World Heritage Site. Luxury hospitality firm Aman has set up shop here by way of Amanjiwo which boasts of impressive limestone architecture and magnificent views of the Menorah Hills;
• East Nusa Tenggara for marine and adventure tourism buffs Home to the Christian-majority province of Labuan Bajo, the region’s towns and villages have since shifted from being transit towns for tourists hoping to see Komodo dragons and into luxury destinations in their own right. Adventurous luxury-seekers can opt for either the AYANA Komodo Waecicu Beach or the more recently-opened Luxury Collection property TA’AKTANA Resort and Spa; and
• West Papua for a refined take on ecotourism West Papua is where one will find the remote destination that is Raja Ampat which is a known protected area for its exquisite coral reefs and atolls. Because of the nature of its primary attraction, ecotourism is king here and conservation takes on an elegant touch via the Misool Eco Resort, as well as Birie Island’s Papua Paradise Eco Resort.