Indonesia tourism stakeholders are finding ways to mitigate the impact of geopolitical tensions disrupting key transit routes, which could significantly reduce longhaul travel demand.
Speaking at a recent webinar entitled Tourism Under Fire, Widiyanti Putri Wardhana, minister of tourism, said: “Indonesia could lose up to 5,500 visitors daily from longhaul markets, such as Europe and the US, if disruptions persist at Middle Eastern transit hubs.”
To minimise the impact on arrivals and revenue, the Ministry of Tourism (MoT) is intensifying efforts in shorthaul markets across South-east Asia, China, Japan, South Korea and Australia, where demand is more resilient due to proximity and cost advantages.
Ni Made Ayu Marthini, deputy for marketing at MoT, said: “The shift reflects a broader strategy to diversify risk and reduce reliance on longhaul segments.”
Other mitigation strategies include optimising partnerships with airlines operating direct routes to Europe and the US, encouraging cross-border events, and intensifying domestic travel promotions to maintain occupancy rates.
Widiyanti added that the government has introduced transport incentives, including 18 per cent discounts on airfares and 30 per cent discounts on land, sea and rail travel. Flexible working arrangements, including work-from-anywhere schemes, are also expected to stimulate domestic mobility.
Airlangga Hartarto, coordinating minister for economic affairs, noted that the weaker rupiah could be an advantage, positioning Indonesia as a high-value destination for international travellers.
“With the current exchange rate fluctuations, this should become a hidden potential in attracting tourists. Marketing must highlight Indonesia as a high-end destination with affordable pricing,” he stated.
However, the travel industry said challenges remain.
Hariyadi Sukamdani, chairman of the Indonesian Tourism Industry Association (GIPI), noted that the potential loss extends beyond volume. He said: “Longhaul travellers typically stay longer and spend more, making them critical to premium tourism businesses.”
High aviation costs continue to weigh on the industry, with players calling for further government intervention.
Hariyadi said: “If we want to attract more international tourists, all cost components linked to access must be reduced.” He pointed to fuel prices, taxes and import duties.
Regional competition is also intensifying.
Airlangga noted that Thailand and Vietnam are moving aggressively with visa policies and safety campaigns. At the same time, a One Visa Six Countries initiative in mainland South-east Asia is expected to roll out in 2026, and he suggested that Indonesia should follow suit.
However, Silmy Karim, deputy minister for immigration, said visa-free access alone would not significantly drive arrivals, citing a 2023 study, and stressed the need to focus on higher-spending travellers.
“We should not focus only on visa-free. We need to fix our other homework first, such as improving promotion, destinations and flight connectivity.”
Despite headwinds, stakeholders remain optimistic, with South-east Asia viewed as a relatively stable region, including Indonesia.
