Indonesia Prioritizes Sustainable Tourism Growth Despite Budget Cuts

RRI.CO.ID, Jakarta - Minister of Tourism, Widiyanti Putri Wardhana, reaffirmed that quality and sustainable tourism development will remain a key priority for the Ministry of Tourism as it seeks to increase the sector’s contribution to Indonesia’s economy. The statement was delivered during a working meeting with Commission VII of the House of Representatives (DPR RI) in Jakarta on Wednesday, June 17, 2026, where the Minister presented the government’s 2027 Work Plan (RKP) and Budget Work Plan (RKA).

“We are committed to optimizing all available resources so that tourism can make a greater contribution to the national economy, job creation, foreign exchange earnings, and community welfare,” Widiyanti said in an official statement.

The Minister explained that the 2027 Government Work Plan carries the theme “Accelerating Quality Growth Through Productivity, Investment, and Industry.” The theme supports the third priority of the government’s Asta Cita agenda, which focuses on continuing infrastructure development, creating quality jobs, promoting entrepreneurship, developing creative industries, and strengthening agro-maritime industries through the active role of cooperatives.

According to her, the ministry’s priority programs next year will focus on quality and sustainable tourism development, including the completion of 10 priority tourism destinations and the development of three regenerative tourism destinations.

The government is targeting national economic growth of 5.8–6.5 percent in 2027. Meanwhile, sectors closely linked to tourism—accommodation, food, and beverage services—are projected to grow by 8.7–9.3 percent.

To support these targets, the Ministry of Tourism has formulated several strategic interventions, including improving human resource quality, strengthening tourism marketing, developing high-quality attractions and events, promoting sustainable tourism, enhancing destination development, and building more inclusive tourism industries and supply chains.

Tourism is also expected to increase its contribution in 2027, reflected in higher Key Performance Indicator (KPI) targets compared to 2026.

International tourist arrivals are projected to reach 17.6–19.1 million visits, representing growth of approximately 8.5–10 percent. Average Spending per Arrival (ASPA) is targeted at USD1,447–1,497, an increase of around 5.5–6.6 percent.

Higher international tourist activity is expected to generate tourism foreign exchange earnings of USD25.5–28.6 billion, approximately 16 percent higher than the previous year.

Domestic tourism trips are targeted to reach 1.28 billion journeys, up 8.5 percent from 2026 levels. The tourism sector is also expected to employ 27.33 million people, representing growth of 3 percent.

Tourism’s contribution to Indonesia’s Gross Domestic Product (GDP) is projected to increase to 4.7–4.8 percent, while tourism investment is targeted to reach Rp71 trillion, an increase of approximately 11.8 percent year-on-year.

Based on a letter from the Ministry of Finance, the Ministry of Tourism has been allocated an indicative budget of Rp1.01 trillion for 2027. The funding will be used to support key performance targets and address strategic challenges facing the tourism sector.

However, the ministry noted that its budget has been on a downward trend since 2024. The 2027 indicative allocation of Rp1.01 trillion remains significantly below historical budget levels and below the ministry’s estimated ideal funding requirements.

The 2027 allocation represents a 29.6 percent decrease compared with the 2026 budget ceiling. The largest reductions affect tourism programs, which face a 65 percent cut, and education and vocational training programs, which will see funding reduced by 46 percent.