Could the Weakening Rupiah Cause Indonesia to Be Invaded by Foreign Tourists?

The Deputy Chairperson of Commission VII of the Indonesian House of Representatives (DPR RI), Chusnunia Chalim, assesses that the weakening of the rupiah exchange rate could potentially increase foreign tourist arrivals and boost foreign exchange earnings from the tourism sector. “A number of data points show tourists from neighbouring countries and the Asian region have experienced an increasing trend in recent months. The tourism sector is also expected to contribute more significantly to the country’s foreign exchange earnings,” Chusnunia said in Jakarta on Thursday (4/6/2026).

According to her, the rupiah’s depreciation makes the cost of travelling in Indonesia relatively cheaper for foreign tourists, especially those using US dollars or other strong currencies. This situation is considered beneficial not only for the hospitality sector and airlines, but also encourages tourists to stay longer while in Indonesia.

“When foreign tourists have greater purchasing power due to a favourable exchange rate, their spending on accommodation, cuisine, entertainment, and local products tends to increase,” she stated. She said increased tourist spending could potentially boost foreign exchange from the tourism sector while simultaneously driving various supporting sectors, such as restaurants, local transportation, souvenir centres, creative economy players, and micro, small, and medium enterprises (MSMEs).

According to Chusnunia, this condition provides benefits for regions that depend on the tourism sector as an economic driver. Nevertheless, she reminded that the rupiah’s weakening also brings challenges for business operators who still depend on imported goods. “A number of business operators who still rely on imported goods, such as premium foods, imported beverages, and certain hotel supplies, continue to face rising operational costs,” she said.

She hopes the rupiah exchange rate can strengthen again so that the national economy improves further and growth in the tourism sector occurs sustainably. “In the current situation, all tourism industry players must remain optimistic about spotting opportunities amid various global challenges. We must join hands to maintain the growth of the national tourism sector,” Chusnunia remarked.