Jayanty Nada Shofa, Heru Andriyanto, Jakarta – Indonesia's rich cultural heritage and vast natural beauty should make it Southeast Asia's top tourism destination, but the country continues to lag behind regional rivals Thailand and Malaysia in foreign visitor numbers, according to industry leaders.
Indonesia recorded about 14 million foreign tourist arrivals through November 2025, up 10.44% year on year, data from the Central Statistics Agency (BPS) show. Thailand reported 33 million international visitors for the full year, while Malaysia logged 28.2 million arrivals between January and August. Vietnam and Singapore have also surpassed Indonesia, with international arrivals reaching 19.15 million and 15.55 million, respectively, in the first 11 months of 2025.
Tourism industry players say the gap reflects policy priorities rather than a lack of attractions, urging the government to place tourism on equal footing with major industrial and mineral downstreaming projects.
"Our tourist destinations and products are number one in ASEAN. We have everything, starting from culture to history. Unfortunately, our policymakers do not consider tourism a priority," said Hariyadi Sukamdani, chairman of the Indonesian Tourism Industry Association (GIPI).
Hariyadi pointed to high aviation costs as a major constraint, noting that airline tickets and aviation fuel are subject to value-added tax, while aircraft spare parts still face import duties. Removing those levies, he said, could reduce fares and help attract more visitors.
The government said in October it was preparing a presidential regulation to establish the Indonesia Quality Tourism Fund (IQTF), reviving a proposal from the previous administration. The fund is expected to include Rp 1.5 trillion ($89.5 million) in endowment capital and about Rp 500 billion in program funding. Hariyadi said the amount "would not be enough for Indonesia to increase its competitiveness in ASEAN."
New strategies
The Tourism Ministry says it has adopted new strategies focused on high-value markets. Ni Made Ayu Marthini, the ministry's deputy for marketing, said priorities are now based on growth trends, spending levels, length of stay, and demand for premium experiences.
"The overarching approach is that tourism must serve as a source of high-quality foreign exchange earnings, not merely higher arrival numbers," she said.
Promotion has shifted toward data-driven campaigns and experience-based storytelling, rather than relying solely on scenic imagery, with destinations such as Raja Ampat marketed as ultra-premium diving and conservation sites rather than mass tourism destinations.
The government is also continuing efforts to develop destinations beyond Bali, while recognizing the island's role as Indonesia's main tourism gateway. Nearly 6.4 million foreign tourists visited Bali in the first 11 months of 2025, accounting for 45% of total international arrivals, BPS data show.
Bali introduced a Rp 150,000 ($9) levy on foreign tourists in recent years, raising Rp 369 billion ($21.9 million) in 2025. GIPI Bali chairman Ida Bagus Agung Partha Adnyana said the fee would not undermine competitiveness if managed transparently to support sustainability.
"A well-targeted incentive will cement Bali and Indonesia's position as a destination for quality tourism in ASEAN," Agung said.
Made Ayu said strong infrastructure, skilled workers, cleanliness, safety, and internationally standard accommodations mattered more than promotion alone.
"Marketing cannot precede readiness," she said. "Attractions must offer clear, authentic, and market-ready experiences that can be packaged for target segments."
For 2026, the government is targeting at least 16 million foreign tourist arrivals, with average spending per visitor of around $1,330 and foreign exchange earnings of no less than $22 billion. The tourism industry is also expected to contribute 4.6% to gross domestic product and generate 26 million jobs.