Ria Fortuna Wijaya, Faisal Maliki Baskoro, Jakarta – Indonesia's weakening rupiah is changing travel patterns on both sides of its borders. Foreign tourists are taking advantage of favorable exchange rates, while Indonesians are opting to stay closer to home as overseas vacations become more expensive.
On a breezy afternoon along Sanur Beach in Bali, an Australian visitor sat under a parasol and calculated that the weak Indonesian rupiah had effectively paid for two extra nights of vacation.
"With the dollar stronger, we decided to stay longer," he said, adding that the savings would also allow him to buy more souvenirs before flying home.
Across the island, hotel operators tell similar stories. Guests who once booked short breaks are extending their stays, turning a falling currency into an unexpected windfall for Indonesia's tourism industry.
A stronger US dollar, Australian dollar, and Malaysian ringgit now buy more hotel rooms, restaurant meals, and spa treatments in Indonesia than they did only months ago. The rupiah had been sliding since the start of the year before finally breaching the Rp 18,000-per-dollar mark on Thursday.
Bali, long the country's tourism flagship, has been one of the clearest beneficiaries. Foreign arrivals to the island reached 553,328 in April, up 17% from the previous month. Australians accounted for more than a quarter of those visitors. Occupancy at star-rated hotels climbed to 58%, while villas and smaller accommodations also reported stronger bookings as tourists took advantage of better value for money.
Nationally, the trend is equally encouraging. Indonesia welcomed 1.25 million foreign visitors in April, bringing arrivals in the first four months of 2026 to 4.68 million, the highest January-April tally since before the pandemic. Malaysia remained the largest source market, followed by Australia and China.
For the hospitality industry, the weaker rupiah has provided a timely cushion against global uncertainty. "A weaker rupiah does make Indonesia more attractive as a holiday destination because it offers better value for foreign visitors," said Hariyadi Sukamdani, chairman of the Indonesian Hotel and Restaurant Association (PHRI).
He argued that the currency alone would not guarantee a tourism boom, but it had strengthened Indonesia's appeal, particularly in nearby markets such as Malaysia and Australia.
Indonesians scale back foreign travel
The gains, however, are not felt by Indonesian travelers. Hariyadi said many middle-income Indonesians are delaying overseas trips because the weaker rupiah has pushed up the cost of flights, hotels, and shopping abroad. Security concerns and geopolitical tensions in the Middle East have only added to the reluctance.
Travel agents are witnessing the same trend. Budijanto Ardiansjah, deputy chairman of the Association of Indonesian Tours and Travel Agencies (Asita), said bookings to destinations such as Dubai, Abu Dhabi, Qatar, Europe, and the United States have weakened noticeably.
"The depreciation of the rupiah is one of the reasons for the decline in overseas travel, alongside geopolitical tensions and their impact on the global economy," he said. Travelers are increasingly shortening their holidays or abandoning all-inclusive packages in favor of simpler, self-arranged trips.
The number of trips made by Indonesians traveling abroad stood at 643,660 in April, down 19% from the previous month and 30.5% from April 2025.
Even domestic tourism feels the squeeze
Rather than shifting to local destinations, Indonesians are traveling less overall. In West Nusa Tenggara, home to Lombok and Sumbawa, domestic visitor numbers have dropped by 40% to 60% from a year earlier.
Domestic tourism also lost momentum after the Eid al-Fitr holiday season. According to the Central Statistics Agency (BPS), the country recorded 97.55 million domestic tourist trips in April, down 23% from March and 24% from a year earlier.
Airfares, influenced by the weaker currency and higher fuel prices, have increased sharply. Hotels, transport operators, and restaurants also face higher costs, particularly where imported goods are involved. Foreign tourists may find Indonesia cheaper, but Indonesians often find traveling within their own country more expensive than expected.
The government is trying to turn the currency's weakness into an advantage while softening the pain for locals. Ni Made Ayu Marthini, deputy for marketing at the Tourism Ministry, has described the rupiah's decline as "an opportunity," arguing that Indonesia now offers exceptional value to international visitors.
Officials are concentrating promotional efforts on nearby markets across Asia and Australia, where shorter flights and favorable exchange rates make spontaneous travel easier. At the same time, Jakarta plans temporary tax subsidies for domestic economy-class airline tickets during the school holiday and year-end festive seasons, a measure expected to reduce fares by about 5%.
Source: https://jakartaglobe.id/lifestyle/weak-rupiah-brings-foreign-tourists-in-keeps-indonesians-at-hom