Indonesia’s 2025 Growth Outlook: Capitalizing on Momentum, Centered on Tourism
By Teguh Anantawikrama Vice Chairman, Indonesian Chamber of Commerce (KADIN) and Chairman, Indonesian Tourism Investor Club
INVESTORTRUST.ID - The IMF projects Indonesia’s real GDP to grow by 5.1% in 2025, making us the second fastest-growing major economy in the world, behind only India. This is more than a macroeconomic milestone—it is a call for strategic consolidation and monetization of our national potential.
As global trade faces disruptions from tariff wars, reshoring, and economic nationalism, Indonesia must lean into sectors that are resilient, inclusive, and high-impact. One sector stands out: tourism.
The IMF projects Indonesia’s real GDP to grow by 5.1% in 2025. Source: IMF.
Tourism: Our Tariff-Free Engine for Sustainable Growth
Tourism is immune to tariff barriers. It generates foreign exchange without friction, builds domestic value chains, and thrives on peace, stability, and experience—exactly what Indonesia offers in abundance.
Beyond its immunity to trade disruptions, tourism in Indonesia holds structural advantages unmatched by many economies.
Indonesia’s Natural and Human Capital: The Backbone of Tourism
The backbone of Indonesian tourism:
1. Unparalleled Natural Beauty
With over 17,000 islands, pristine beaches, mountains, rainforests, and marine biodiversity, Indonesia offers a geographic canvas that few nations can rival. From Raja Ampat to Toba, from Wakatobi to Labuan Bajo, our archipelago is not just scenic—it’s iconic.
2. Living Cultural Heritage
Indonesia is home to more than 1,300 ethnic groups, hundreds of traditional rituals, world-renowned batik, gamelan, wayang, culinary diversity, and UNESCO-recognized heritage sites. These aren’t just assets—they’re living experiences waiting to be scaled for global audiences.
3. A Workforce Powerhouse
With a young, adaptive, and creative workforce, Indonesia is positioned to power the entire tourism value chain—from hospitality and digital marketing to creative events, destination management, and wellness services. Tourism creates jobs where they’re most needed—rural, coastal, and creative communities—making it one of the most inclusive sectors in our economy.
Together, this trifecta of beauty, culture, and human capital gives Indonesia a structural advantage in the global tourism economy, especially at a time when the world is craving authentic, conscious, and meaningful travel experiences.
From Attractions to Investable Ecosystems
To fully monetize this potential, we must evolve from promoting fragmented destinations to presenting investment-grade tourism ecosystems.
That means:
• Developing integrated tourism zones with bundled infrastructure, regulatory ease, and environmental safeguards.
• Designing investor-ready narratives that merge returns with impact—such as blue economy tourism, spiritual trails, or indigenous-led eco-resorts.
• Elevating domestic travel with digital innovation—giving our local travelers a premium experience, while enabling global visibility for small destinations.
Indonesia must also proactively target strategic segments—halal tourism, wellness tourism, heritage tourism, and green travel—to attract the kind of investors and visitors who value long-term engagement and sustainability.
Making Tourism Our Strategic Export
Tourism is more than leisure—it is a non-tariff, experience-based export. It brings in capital, ideas, and relationships. Unlike commodity exports, it has no customs queue, no geopolitical dependencies, and no supply chain bottlenecks. It’s local yet global. Tangible yet emotional.
And in an era of multipolar tension and economic fragmentation, that makes tourism a strategic national asset.
Private dining aboard a Phinisi ship, one of the signature experiences offered by Plataran Komodo in Labuan Bajo, East Nusa Tenggara. Photo: Plataran Komodo.
Action Plan: Monetize Through Consolidation
To unlock the true value of our tourism sector, we must:
1. Consolidate Value Propositions by Region
Create investable platforms like the Bali Beyond Belt, the Heritage Java Route, or the Eco-Nusantara Archipelago—each with clear ROI models, digital infrastructure, and environmental integration.
2. Institutionalize a National Investor Concierge
Offer end-to-end support for tourism investors—from land acquisition and licensing to ESG certification and human capital sourcing.
3. Unify Stakeholders Under a Shared Story
From KADIN and IWAPI to regional governments and creative entrepreneurs, we must tell a coherent, compelling story to the world: Indonesia is ready, reliable, and rising.
Let’s Lead With What’s Uniquely Ours
Our projected 5.1% growth is a signal—but our cultural capital, natural wonders, and human talent are the substance. Let’s lead with what no one else has. Let’s make tourism not just a sector, but a national strategy for prosperity, unity, and soft power.
In this age of fragmentation, let us be the country that invites the world in. Let us lead with Indonesia, experienced. ***
