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Indonesia’s tourist sector: A new era of innovation and growth
Indonesia’s upward trajectory in global tourism is undeniable
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A general view of government-built overwater bungalows for tourists, that have been closed for renovation, next to the village of the Bajau sea nomads in Papan Island in Central Sulawesi on July 3, 2024. (AFP/Jack Moore)
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s Indonesia enters a new chapter under President Prabowo Subianto, the nation’s tourist sector stands at the brink of a transformative era. With the recent appointment of Widiyanti Putri Wardhana as tourism minister, optimism is surging. Armed with an entrepreneurial spirit and visionary strategies, she embodies the innovative leadership needed to align with President Prabowo’s bold vision for national development.
Indonesia’s upward trajectory in global tourism is undeniable. Recent advancements in the Travel and Tourism Development Index (TTDI), where the country climbed from 32nd to 22nd place, spotlight its burgeoning potential. This momentum presents both an opportunity and a challenge: ensuring sustainable, inclusive growth while preserving the nation’s rich cultural and natural heritage.
Minister Widiyanti’s approach reflects a deep understanding of this pivotal moment. Her strategy centers on inclusivity, innovation and sustainability, three pillars essential for the industry’s growth. By fostering partnerships among local communities, industry leaders and international stakeholders, her vision paves the way for a tourist sector that benefits all.
To promote inclusivity, the new government can support or even establish partnerships, both existing and new, particularly with business entities that cater to all levels of accommodation. To align with these new policies, the government can collaborate with hospitality businesses, especially those operating in budget-friendly segments, to strengthen their presence in lower-tier cities. Travelers often prefer to stay longer in such remote destinations, making budget-friendly accommodation their top choice.
At the heart of her plan is the Indonesia Quality Tourism Fund (IQTF), a game-changer for the industry. By channeling resources into high-quality events, infrastructure upgrades and the empowerment of small and medium enterprises (SMEs), the IQTF aims to unlock the untapped potential of regions beyond Bali. This strategy diversifies the tourism landscape and distributes economic benefits more equitably across the archipelago.
Bali is often seen as Indonesia’s crown jewel, but relying too heavily on this one destination has led to over-tourism and countless missed opportunities in other regions. To address this growing issue, it is vital for both the government and industry leaders to take action, especially since we lack new infrastructure to support the influx of visitors. If things do not change, Bali’s popularity could start to work against it.
To combat overtourism, the government needs to invest in improving various infrastructure elements, especially transportation. Making it easier to travel around Indonesia means doing more than just marketing campaigns, it requires real investment. Enhancing transportation networks and lowering the costs of domestic flights are important steps that could encourage more Indonesians to discover the beauty of their own country.
