The IMF has projected Indonesia’s economy to grow by 5.1% in 2025, placing us just behind India as the second fastest-growing major economy in the world. This milestone is not just a sign of strong fundamentals—it is a strategic signal that Indonesia must now act decisively to monetize its momentum.

In a world increasingly disrupted by tariff wars, deglobalization, and protectionist policies, Indonesia must lean into sectors that are resilient, inclusive, and largely immune to geopolitical friction. Few sectors fit this profile better than tourism.

Why Tourism is Our Strategic Hedge

Tourism is a non-tariff export. It generates foreign exchange without customs duties, builds domestic value chains, and fosters soft power—all without being entangled in trade disputes or global logistics bottlenecks.

Beyond that, Indonesia has unique advantages:

• Natural capital: With over 17,000 islands, Indonesia possesses some of the world’s most breathtaking natural destinations.
• Cultural capital: More than 1,300 ethnic groups contribute to a living heritage unmatched globally.
• Human capital: Our young, digitally literate, and service-oriented workforce is ready to power inclusive tourism growth.

Tourism also creates jobs where they’re most needed—in rural, coastal, and creative communities—making it one of the most pro-poor and job-intensive sectors of the economy.

From Fragmentation to Value Consolidation

What we need now is a shift in how we present our tourism sector to investors. Instead of fragmented site-based promotion, we must offer integrated investment-grade ecosystems. Think regional tourism belts, bundled incentives, fast-track licensing, and narrative-driven positioning around heritage, wellness, and green travel.

Indonesia should also leverage its leadership role in BRICS and the Muslim world to attract targeted investment in halal tourism, pilgrimage infrastructure, and eco-spiritual hospitality.

The Next Step: Monetize with Purpose

If we treat tourism merely as a hospitality sector, we will miss the bigger picture. It is a strategic export, a tool for nation branding, and a platform for grassroots economic transformation. More importantly, in the face of trade volatility, tourism can be our anchor of stability and source of confidence.

Indonesia’s growth story is already unfolding. But to own it, we must package, consolidate, and monetize it—starting with tourism.

Let us not just invite the world to visit Indonesia. Let us invite them to invest in the future we are building.

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