Middle East War Threatens Indonesia’s Tourism and Foreign-Exchange Revenue

RRI.CO.ID, Jakarta - The US–Iran war has been ongoing for more than a month, with no clear end in sight. If the conflict drags on, Indonesia’s tourism sector is expected to suffer from declining domestic and international tourist arrivals.

According to data from the Central Bureau of Statistics (BPS), international tourist visits to Indonesia remain relatively strong. On a monthly basis, arrivals fell by 2.42 percent to about 1.16 million in February.

“However, on an annual basis, international tourist arrivals in February increased by 13.37 percent,” said BPS Deputy for Distribution and Services Statistics, Ateng Hartono, on Saturday, April 4, 2026. Cumulatively, international tourist arrivals from January to February 2026 reached 2.35 million.

“Overall, foreign tourist visits rose by 7.77 percent. Arrivals in January–February 2026 were the highest since 2021,” Ateng added.

Still, foreign tourist arrivals in March 2026 are expected to decline due to the US aggression against Iran. Rising tensions in the Middle East and surging oil prices have driven up transportation costs and dampened travel demand.

“The closure of Iranian airspace has directly caused flight cancellations to Indonesia. This risks reducing tourist arrivals, particularly from long-haul and high-spender segments,” said Tourism Minister Widiyanti Putri Wardhana during a hearing with the House of Representatives’ Commission VII this week.

She noted that between February 28 and March 29, 2026, six departure hubs were affected: Abu Dhabi, Doha, Dubai, Jeddah, Medina, and Muscat.

“A total of 770 flights were canceled, with a potential loss of 60,752 tourist visits and foreign-exchange revenue amounting to IDR 2.04 trillion (USD 120.05 million),” Minister Widiyanti said.

If the Middle East conflict continues until the end of the year, Indonesia could lose an estimated 1.44–1.68 million international tourist visits. The potential loss of foreign-exchange revenue is projected at IDR 48.3–56.5 trillion.

Minister Widiyanti further explained that the conflict, which has driven up oil prices, has increased transportation costs. As a result, travel demand is expected to decline among both international and domestic tourists. (Gusti Panji/Lasti Martina)