Government Pushes Tourism Incentives to Tackle Global Geopolitical Pressures

The government continues to strengthen the tourism sector amidst global geopolitical dynamics that affect travel costs, notably due to energy shortages in the Middle East. Tourism Minister Widiyanti Putri Wardhana emphasised that a range of incentives is being rolled out to safeguard the competitiveness of the national tourism industry. In comments after attending the National Tourism Coordination Conference in Jakarta, Widiyanti noted that the surge in jet fuel prices poses a major challenge with a direct impact on ticket prices. To alleviate this, the government is offering a series of strategic stimuli. The government is also providing zero per cent import duties on aircraft spare parts, a move expected to reduce cost pressures on carriers. Economy-class seat discounts are viewed as an effort to keep ticket prices affordable so travellers can still travel comfortably without bearing substantial price increases. Widiyanti stressed the importance of proactive measures to anticipate a decline in tourists from conflict-affected regions. In addition, the government is now focusing on quality travellers, i.e., groups seeking meaningful experiences and less sensitive to rising travel costs. “Not only looking at beaches or mountains, but how they can engage with communities. Indonesia is renowned for its friendly people,” said Widiyanti. Meanwhile, Acting Deputy for Industry and Investment at the Ministry of Tourism and Creative Economy (Kemenparekraf) Rizki Handayani Mustafa described global dynamics as an opportunity. According to him, a stronger dollar could benefit the national tourism sector if managed optimally. “Rising jet fuel prices affect tourism costs. This needs to be discussed. However, this situation also makes Indonesian destinations more competitive,” he explained. He added that a softer rupiah indirectly makes Indonesia a more affordable destination for foreign travellers. “I don’t want to say cheap, but affordable. This could be our strength because Indonesia’s affordability is stronger than that of other countries,” he said. With a combination of cost stimuli, enhanced appeal, and promotion of quality tourism, Indonesia hopes to sustain the momentum of tourism recovery while increasing its global competitiveness.