Airlangga: Indonesia Needs to Mitigate Tourism Losses from Global Crisis

Jakarta - Coordinating Minister for the Economy Airlangga Hartarto believes Indonesia must promptly reform the tourism sector to mitigate the effects of the global crisis, particularly due to the conflict in the Middle East. He stated that the tourism sector is currently facing pressure from disrupted global connectivity caused by the conflict. “Indonesia needs to immediately carry out reforms to mitigate losses from the global crisis, as well as build a competitive, resilient, and highly competitive tourism foundation and destinations on the international stage,” Airlangga said in his statement in Jakarta on Wednesday. The Ministry of Tourism projects a potential loss of around 5,500 foreign tourists and a potential foreign exchange loss of Rp184.8 billion per day if not mitigated promptly. Airlangga emphasised that the tourism sector remains important to focus on, given its significant contribution to the national economy. In 2025, this sector will contribute Rp945.7 trillion or equivalent to 3.97 percent of gross domestic product (GDP). Additionally, the number of foreign tourist visits reached 15.39 million people, growing 10.7 percent year-on-year (yoy). In terms of foreign exchange, the sector generated $18.91 billion and supported 25.91 million workers.