Tourism Becomes Indonesia's New Growth Engine, Booming in 2026

Indonesia’s national economy began 2026 on a positive note. GDP growth in the first quarter of 2026 reached 5.61 per cent year on year, reflecting a still-strong economic foundation amid global uncertainty. Among strategic sectors, tourism has become a key driver in supporting foreign exchange earnings and strengthening the national economic structure. Throughout 2025, the tourism sector was dynamic, recording 15.39 million international tourist visits and 1.2 billion domestic tourist trips. At the start of 2026, this positive momentum continued, with 3.44 million international tourist visits and 319 million domestic trips. At the National Tourism Coordination Meeting 2026, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasised the importance of tourism as a driver of the domestic economy. ‘To achieve an eight per cent growth target, the tourism sector’s contribution target is five per cent of national GDP, with foreign exchange earnings projected at US$39.4 billion. If that figure is on a par with Indonesia’s leading exports such as coal and palm oil, then this is the domestic engine of growth that we must accelerate,’ said Minister Airlangga. The sizeable foreign exchange target underscores tourism’s strategic position alongside key export commodities such as coal and palm oil. The government is moulding a new paradigm for tourism that is higher quality, sustainable, and inclusive. A number of strategic steps are being orchestrated, including: Through training, vocational education, certification, and capacity improvements integrated with industry needs. The aim is to create a workforce in tourism that is competent and adaptable to global developments. Covering destination safety standards, improving accessibility and connectivity, and expanding the application of the Bebas Visa Kunjungan (BVK) visa-free visit scheme for countries with potential international tourist markets. The government also encourages: The use of the Indonesia Quality Tourism Fund as an alternative financing for tourism development outside the national budget. Airlangga emphasised that the ASEAN region has significant potential to support tourism growth. Countries such as Thailand and Malaysia can attract more than 35 million international visitors each year. This article is part of Lestari KG Media, an initiative to accelerate Sustainable Development Goals. Read more.