Indonesia’s Ambitious Tourism Goals Under Threat Due to Budget Cuts
Jakarta. The recent austerity measures implemented by President Prabowo Subianto on all ministries and state agencies may hinder Indonesia’s progress in attracting foreign tourists. This is due to significant reductions in the tourism promotion budget, which the Indonesian Travel Agency Association (Asita) has highlighted as concerning.
Ambitious Tourism Targets versus Budget Constraints
The government has set an ambitious goal of welcoming 16 million international tourist arrivals by 2025. They are banking on increasing trends in foreign visits to achieve this. In 2024, Indonesia recorded a record 13.9 million foreign tourists, the highest since the onset of the COVID-19 pandemic in 2020.
Despite this positive trend, Asita is urging the government to reassess the budget cuts and reinvest in financial support for the tourism sector. They believe strong financial backing is crucial to ensure that Indonesia maintains competitiveness within the ASEAN tourism market.
Industry Doubts Goals Achievability Under Austerity
The industry association expresses skepticism about meeting the 2025 goals under the current budget cuts. These measures have notably reduced the Tourism Ministry’s funding, affecting promotional efforts vital to attracting tourists.
“Budget cuts in the Tourism Ministry will surely impact the national tourism industry, especially travel agencies. We will soon start to feel the effects of these spending reductions,” said Budianto Ardiansyah, the Secretary-General of Asita. “The government has set a significant target but cut the budget—this inconsistency is problematic.”
Declining Tourism Ministry Budget
The specific extent of the Tourism Ministry’s budget reduction remains undisclosed. Historically, this ministry receives one of the lowest allocations among state departments.
During the 2025 budget year, the Tourism and Creative Economy Ministry was allocated Rp 1.7 trillion. Initially, they requested an enhancement to Rp 3.4 trillion, but unfortunately, this request was not granted.
The split of tourism and creative economy sectors after Prabowo Subianto’s inauguration in October further diminished the Tourism Ministry’s budget to Rp 1.4 trillion.
Competitive Landscape in ASEAN
Indonesia is striving to match and surpass neighboring ASEAN countries in terms of foreign tourist arrivals. For instance, Thailand led the region in 2023 with 28 million visitors, followed by Malaysia (17 million), Vietnam (12.6 million), the Philippines (5.4 million), and Singapore (13.6 million).
With a reduced promotional budget, Indonesia might find it challenging to compete with Thailand and Malaysia, which invest heavily in tourism campaigns and have strong international market presence.
“With a smaller budget, our overseas marketing efforts will be curtailed, potentially leading to fewer international arrivals,” Budianto warned.
Independent Efforts to Meet Tourism Targets
Despite the government’s cuts, Asita remains committed to supporting the tourism industry’s success.
“We aim to achieve a target of 16 million arrivals. Regardless of government aid, the association will continue to promote Indonesia’s tourist attractions,” Budianto concluded.
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Indonesia tourism, budget cuts, Prabowo Subianto, Asita, ASEAN tourism, international arrivals, tourism targets
Keywords:
Indonesia tourism, budget cuts, Prabowo Subianto, Asita, ASEAN tourism, international arrivals, tourism targets
As Indonesia strives to achieve its ambitious tourist goals, the reduced promotional budget poses a significant challenge. Stronger governmental support and strategic marketing initiatives are crucial to ensure the country maintains its competitive edge in the dynamic and increasingly competitive ASEAN market.
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