Commission VII: Weakening Rupiah Has Potential to Boost International Tourist Visits

Data indicates that tourists from neighbouring countries and the Asian region have shown an increasing trend in recent months. The tourism sector is also expected to contribute more significantly to the country’s foreign exchange earnings.

Jakarta (ANTARA) - The Deputy Chair of Commission VII of the Indonesian House of Representatives (DPR RI), Chusnunia Chalim, believes that the weakening of the rupiah exchange rate has the potential to increase international tourist arrivals and boost foreign exchange revenue from the tourism sector.

“A number of data points show that tourists from neighbouring countries and the Asian region have experienced an increasing trend in recent months. The tourism sector is also expected to be able to provide a larger contribution to the state’s foreign exchange earnings,” Chusnunia said in Jakarta on Wednesday.

According to her, the weakening of the rupiah exchange rate makes travelling in Indonesia relatively cheaper for foreign tourists, especially those using the US dollar or other strong currencies.

“When foreign tourists have greater purchasing power due to favourable exchange rates, their spending on accommodation, culinary experiences, entertainment, and local products tends to increase,” she added.

She noted that increased tourist spending has the potential to boost foreign exchange from the tourism sector while simultaneously driving various supporting sectors, such as restaurants, local transport, souvenir centres, creative economy players, and micro, small, and medium enterprises (MSMEs).

However, she warned that the weakening rupiah also presents challenges for businesses that still rely on imported goods.

“A number of business actors who still depend on imported goods, such as premium foods, imported beverages, and certain hotel supplies, continue to face rising operational costs,” she said.

“In the current situation, all players in the tourism industry must remain optimistic about the opportunities arising amidst various global challenges. We must work together to maintain the growth of the national tourism sector,” Chusnunia concluded.