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🇸🇬 Singapore /Economy & Trade

Indonesia to Tap ASEAN, Domestic Tourism Amid Iran War Fallout

From The Straits Times · (5h ago) English

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Indonesia is implementing a strategy to boost tourism within ASEAN and domestically to mitigate the impact of the US-Iran conflict on global air travel.
  • The strategy involves shifting focus to short-haul markets, particularly ASEAN countries, which accounted for over 41% of foreign arrivals in 2025.
  • Challenges include improving connectivity and accessibility within the archipelagic nation, a reduced airline fleet post-pandemic, and limited promotional budgets compared to regional peers.

In response to the disruptions caused by the conflict between the United States and Iran, which has impacted global air travel, Indonesia is strategically pivoting its tourism focus. The Ministry of Tourism is prioritizing the promotion of intra-ASEAN travel and bolstering domestic tourism as a crucial buffer against potential losses in international arrivals.

ASEAN countries need to work together instead of competing

— Ni Made Ayu MarthiniMs. Marthini, the Tourism Ministry’s marketing deputy, stressed the importance of regional collaboration for boosting tourism.

Deputy Marketing Minister Ni Made Ayu Marthini emphasized the need for regional cooperation within ASEAN, highlighting that the bloc's existing framework can support cross-border tourism initiatives. The ASEAN market remains vital, representing a significant portion of Indonesia's foreign visitors. However, Marthini acknowledged that enhancing connectivity and streamlining travel processes within Indonesia, an archipelagic nation, presents a substantial hurdle.

The fact that Indonesia is an archipelagic country, the number one challenge is accessibility and connectivity. Unlike Thailand, which is a (littoral) country, you can drive and take trains (to various land-based destinations)

— Ms. MadeMs. Made explains the unique challenges Indonesia faces in tourism development due to its geography.

Compared to regional competitors like Thailand, Malaysia, Vietnam, and Singapore, Indonesia faces unique challenges. The country's vast geography makes accessibility and inter-island connectivity more complex than in mainland Southeast Asian nations. Furthermore, the airline fleet has shrunk considerably since the COVID-19 pandemic, weakening air connectivity. Limited promotional budgets also hinder Indonesia's ability to compete effectively on the global stage, despite the immense potential of its diverse tourist sites beyond Bali.

(Promotion) is a constant effort. You cannot stop. You cannot have a small budget for promotion because promotion is an investment. So I believe other countries in the region are putting a lot of resources there

— Ms. MadeMs. Made highlights the need for sustained and significant investment in tourism promotion to remain competitive.

From an Indonesian perspective, as articulated in The Jakarta Post, this strategic shift is not merely about economic diversification but also about national resilience. Promoting domestic travel through campaigns like 'Bangga Berwisata di Indonesia' (Proud to Travel in Indonesia) is seen as essential for sustaining the industry. The government recognizes that while global events are beyond its control, strengthening internal tourism provides a more stable foundation, ensuring that the economic benefits of tourism continue to reach communities across the archipelago, even amidst international uncertainty.

For domestic (tourism), the Bangga Berwisata di Indonesia (Proud to Travel in Indonesia) campaign is key

— Ms. MadeMs. Made identifies the 'Proud to Travel in Indonesia' campaign as central to promoting domestic tourism.
DistantNews Editorial

Originally published by The Straits Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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