Tourism Minister: Middle East Conflict Threatens Foreign Exchange Earnings

Tourism Minister Widiyanti Putri Wardhana stated that Indonesia is at risk of losing foreign exchange from the tourism sector amounting to Rp 48.3 - 56.5 trillion due to geopolitical conflicts in the Middle East. This calculation covers 306 days from 28 February to 31 December 2026. “If this situation continues until the end of the year, the potential impact is estimated to reach 1.44 to 1.68 million international tourist visits,” the Tourism Minister said during a working meeting with Commission VII of the House of Representatives at the parliamentary complex on Wednesday, 1 April 2026. Widiyanti explained that from 28 February to 28 March 2026, six departure points from the Middle East to Indonesia were affected: Abu Dhabi, Doha, Dubai, Jeddah, Madinah, and Muscat. In that period alone, 770 flights were cancelled, resulting in an estimated loss of 60,752 tourists and Rp 2.04 trillion in state foreign exchange. In fact, the Middle East serves as a strategic hub for long-haul international tourists to Indonesia. Since the closure of Iranian airspace at the end of February, the number of foreign tourists has declined. “This risks reducing tourist visits, particularly from the long-haul segment (long-distance travel) and high spenders (those who spend large amounts),” Widiyanti said. Despite the threat of geopolitical conflict, the Ministry of Tourism remains optimistic about achieving 16-17 million foreign tourist visits to Indonesia in 2026. This figure is higher than the 2025 achievement of 15.39 million people. The challenges facing Indonesia’s tourism industry are linked to the rise in crude oil prices from around US$70 per barrel to US$100 per barrel. The impact is an increase in aviation fuel (Avtur) prices and surging airline ticket fares. Widiyanti said that foreign airlines that have raised fuel surcharges on tickets include Air India by 50 per cent, and Cathay Pacific on intercontinental routes, which has also increased fares by up to 105 per cent. Even on the Singapore to Batam route by ferry, ticket prices have risen by 15.79 per cent. “From S$76 to S$88 for a round trip,” she stated.