Jakarta, March 18, 2026 – The Europe Today: Coordinating Minister for Economic Affairs Airlangga Hartarto has emphasized the urgent need for Indonesia to reform its tourism sector to mitigate the adverse impacts of global crises, particularly ongoing tensions in the Middle East.
In a statement issued on Wednesday, Hartarto noted that the tourism industry is currently under significant pressure due to disruptions in global connectivity caused by the conflict. He stressed that immediate reforms are essential to minimize losses and establish a strong, globally competitive tourism framework.
“Indonesia needs to immediately carry out reforms to mitigate losses from global crises and build a foundation for robust and globally competitive tourism and destinations,” he stated.
According to the Ministry of Tourism, failure to implement prompt mitigation measures could result in the loss of approximately 5,500 foreign tourists per day, alongside a potential foreign exchange loss of Rp184.8 billion (around US$10.8 million) daily.
Data from InJourney Airports covering the period from late February to March 10, 2026, revealed disruptions across nine international routes at Soekarno-Hatta International Airport and Bali’s Ngurah Rai International Airport, impacting a total of 47,012 passengers. The situation has been further exacerbated by rising aviation fuel prices.
Despite these challenges, Hartarto highlighted the tourism sector’s vital role in Indonesia’s economy. In 2025, the sector contributed Rp945.7 trillion, accounting for 3.97 percent of the country’s Gross Domestic Product (GDP). Foreign tourist arrivals reached 15.39 million, marking a 10.7 percent year-on-year increase, while the sector generated US$18.91 billion in foreign exchange and supported 25.91 million jobs.
To sustain competitiveness, the minister outlined several strategic measures, including expanding the visa-free entry policy. A study by the World Travel and Tourism Council indicated that Indonesia’s visa-free policy for 169 countries since 2015 has boosted tourist arrivals by up to 15 percent annually and created approximately 400,000 jobs. The Ministry of Tourism has identified 20 additional countries for potential inclusion.
Hartarto also underscored the importance of strengthening the domestic tourism market, particularly during the upcoming Eid al-Fitr holiday season. He proposed promoting micro-tourism by developing nearby destinations offering immersive travel experiences. The government plans to introduce incentives such as transportation discounts and a work-from-anywhere policy to encourage domestic travel.
Additional measures include negotiating new international flight routes, reinforcing Indonesia’s image as a safe and stable destination, and promoting tourism opportunities for digital nomads.
“Marketing that highlights Indonesia as an affordable high-end destination needs to be strengthened,” Hartarto added.
Concluding his remarks, the minister stressed the importance of enhanced collaboration among stakeholders to ensure the resilience and sustainability of Indonesia’s tourism ecosystem amid evolving global dynamics.
