Kemenpar capitalises on rupiah depreciation to attract foreign tourists

The Ministry of Tourism (Kemenpar) is capitalising on the rupiah’s depreciation against the dollar to attract foreign tourists.

“This is an opportunity; we never turn down challenges as they always come with opportunities. We’re leveraging the rupiah’s weakness,” said Ni Made Ayu Marthini, Deputy for Marketing at Kemenpar.

Speaking at the Bali & Beyond Travel Fair (BBTF) 2026 in Badung Regency on Friday, Marthini explained that the strong US dollar makes Indonesia an attractive destination for international travellers.

“From a consumer perspective, especially foreign tourists, the rupiah’s depreciation offers better value for money. For instance, what Rp1 million could previously buy now has greater purchasing power, creating unique appeal,” she added.

Kemenpar is urging tourism businesses to capitalise on this trend, noting the real impact of the rupiah’s weakness has already boosted visitor numbers from Malaysia.

“Neighbouring Malaysia has a stronger currency, so when our rupiah weakens, their spending power for trips here multiplies, making it more appealing,” Marthini said.

Indonesian tour packages will become more affordable for international visitors, prompting tourism businesses to ramp up promotions to attract more visitors.

However, Kemenpar also highlighted challenges accompanying the rupiah’s depreciation, including geopolitical conflicts driving up fuel prices and flight costs, causing potential tourists to reconsider travel plans.

Additionally, European travellers often transit through the Middle East to reach Indonesia, raising safety concerns.

To mitigate this, Kemenpar is shifting focus from long-haul markets like Europe and the Americas to closer Asian and Australian destinations.

“We need to adapt; previously we targeted distant regions like Europe and America, but now realistically focusing on Asia, ASEAN, and Australia. While European and American tourists stay longer (three weeks to a month), Asian visitors tend to stay shorter periods—this requires a balanced approach,” she explained.

Another challenge is the reliance on imported tourism products. With the rupiah’s weakness, import costs have risen, yet tourist demands must be met.

“Imported items like cheese are expensive now, so local alternatives could be used. Foreign tourists appreciate local products, but some still prefer familiar brands. It’s about balancing imports with domestic options,” Marthini said.