Weak Rupiah Could Boost Indonesian Tourism, Lawmaker Says

A depreciating Indonesian Rupiah may be a boon for the nation's tourism sector, potentially drawing more foreign visitors and boosting foreign exchange earnings, according to Chusnunia Chalim, Deputy Speaker of the House of Representatives' Commission VII.

Chusnunia noted a recent upward trend in tourist arrivals from neighboring Asian countries. She believes the tourism sector can significantly increase its contribution to state revenue. The weaker Rupiah makes Indonesia a more affordable destination for international travelers, particularly those using U.S. dollars or other strong currencies. This cost advantage is expected to benefit not only hotels and airlines but also encourage tourists to extend their stays and increase spending on accommodation, food, entertainment, and local products.

This increased spending by foreign tourists could significantly boost tourism revenue and stimulate related sectors, including restaurants, local transportation, souvenir shops, creative economy players, and micro, small, and medium enterprises (MSMEs). Chusnunia highlighted that this scenario benefits regions heavily reliant on tourism for economic growth. However, she cautioned that the weakening Rupiah also presents challenges for businesses dependent on imported goods, such as premium food, imported beverages, and certain hotel supplies, leading to higher operational costs.

Chusnunia expressed hope for the Rupiah's eventual strengthening to further improve the national economy and ensure sustainable growth in the tourism sector. She urged all tourism industry stakeholders to remain optimistic about emerging opportunities amidst global challenges and to collaborate in sustaining the national tourism sector's growth.