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Bali, Jakarta, and Riau Islands still dominate tourism investment flows

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Jakarta Globe - May 20, 2026

Leonard AL Cahyoputra, Jakarta – Indonesia is targeting Rp 63.5 trillion ($3.6 billion) in tourism investment across 13 priority destinations in 2026, but officials say investment flows remain heavily concentrated in Bali, Jakarta, and the Riau Islands.

Rizki Handayani, deputy for industry and investment at the Tourism Ministry, said on Wednesday that around 70% of tourism investment recorded in 2025 was concentrated in those three provinces.

"Therefore, we are encouraging stronger collaboration to expand investment into other priority destinations and regions with significant development potential," Rizki said in Jakarta.

She said regional governments need to improve the readiness of tourism investment projects so they become more mature, commercially viable, and attractive to investors.

Local administrations also need to strengthen supporting infrastructure, transportation connectivity, and diversification of tourism products and services, she added.

Creating a more investment-friendly environment through regulatory simplification and legal certainty is also critical for strengthening investor confidence, Rizki said.

"The tourism minister has asked us to create a forum where regions with tourism projects can be directly connected with potential investors," she said.

Rizki also outlined six major trends currently shaping global tourism demand: nature and adventure travel, eco-friendly tourism, culinary and gastronomy tourism, cultural immersion, wellness tourism, and "bleisure" travel, which combines business and leisure activities.

"There are evolving market trends that will ultimately shape tourism products. The challenge is linking each region's tourism potential with these global trends," she said.

At the same event, Ni Made Ayu Marthini, deputy for marketing at the Tourism Ministry, said global conditions continue to affect international travel flows, particularly from Europe, the Middle East, and the United States.

Geopolitical tensions, including conflict in the Middle East, have contributed to higher oil prices and rising airfare costs, she said.

Despite those challenges, the ministry remains optimistic about Indonesia's tourism outlook.

"From the marketing side, we must remain optimistic. In every crisis, there is always an opportunity – not only to survive, but also to create growth," Made said.

According to data from Amadeus covering March to June 2026, global airline ticket bookings rose 4%, indicating that international travel demand remains resilient despite shifting travel patterns toward alternative destinations outside Europe.

The trend toward short-haul and intra-Asia travel has also strengthened.

"We are pivoting toward safer corridors such as ASEAN and East Asia – including Japan, South Korea, and China – as well as Oceania markets like New Zealand and Australia. Those neighboring markets are our main targets," Made said.

"Even so, Europe, the Middle East, and the United States remain important because their visitors have high average spending per arrival," she added.

Made also said sports tourism and wellness tourism, offering more personalized experiences, are becoming fast-growing segments.

To strengthen digital promotion, the ministry recently upgraded the official tourism portal, introducing an artificial intelligence-based platform called MaiA to help travelers discover destinations, design itineraries, and access tourism information more easily.

"We want regional governments, associations, and industry players to collaborate with us. It is important for all of us to maximize digital promotion," Made said.

Source: https://jakartaglobe.id/lifestyle/bali-jakarta-and-riau-islands-still-dominate-tourism-investment-flow

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