Indonesia

Bali’s Governor has reported that the first round of funding from the Bali Tourism Tax has been given to traditional village leaders throughout Bali, although he did not state the amount or budget given. The fund must be used to preserve Balinese culture, protect the natural landscape and improve infrastructure. They are also drawing up new policies for the Tourism Tax, with an aim of generating 450 billion IDR in 2025 and that by 2026, each village will receive 50 billion IDR each. Bali leaders are said to be talking to airlines about integrating the tax into the check in, so that passengers will need to have completed their fee payment to gain their boarding pass

Two hotels owned by Sahira Hotels Group in Bogor, the Hotel Sahira Butik Hotel Paledang and Hotel Sahira Butik Hotel Pakuan, will close temporarily due to the drop in demand from the government sector. 130 workers will be impacted

An Indonesian Hotel and Restaurant Association (IHRA) and Horwath HTL survey from 30 provinces and 717 hotels has reported: 88% are contemplating mass layoffs to survive 58% anticipate they might default on loans 48% project unavoidable permanent hotel closures should the situation remain unchanged 56% forecast a 10-30% loss in total revenue YoY 78% see missed tax revenue targets for the government 71% forecast supply chain disruptions which could impact SMEs relying on the tourism sector 83% are concerned that a slowdown in the tourism economy will impact local economies Over 50% expect a challenging year The Indonesia Tourism Industry Board has called on the government to roll back its policy, after the government initially planned to cut 50% of budget, but hotels are now facing a total cut, as it could lead to job losses. They called on the government to implement tax relief, tourism promotion, human capital development, financial assistance, simplified regulations and visa-free policies

The Transportation Ministry Official said the Eid al-Fitr holiday mudik (exodus) has started early due to the work-from-anywhere (WFA) policy for civil servants and early school holidays. PT Jasa Marga toll operator said 115,141 vehicles left the Greater Jakarta area on 21 Mar, +37% YoY. PT KAI said over 174,000 people travelled as of 22 Mar, +42.4% YoY. Transportation Ministry’s data shows the number of cars, trains recorded a significant increase, and ferry passengers recorded +28.3% YoY, followed by air passengers, +15.3% YoY, and bus passengers, +4.41% YoY. As of 23 Mar, a total of 2.37 million have travelled to their hometowns, +30% YoY. The government reduced airfares by 13%-14% for flights between 24 Mar-7 Apr. Toll fee discounts are also in place and will remain until 28 Mar

Deputy Tourism Minister said there are various opportunities for tourism school graduates to work on the global stage. She said 99% of students from Lombok Tourism Polytechnic, West Nusa Tenggara, expressed a desire to work overseas. She said the number of Indonesian migrant workers in the hospitality industry reached 23,152, 4.02% of the total target placement of 287,434

The Indonesian Child Protection Commission (KPAI) asked the regional governments and tourist attraction managers to pay more attention to make tourist attractions child-friendly

The Bali & Beyond Travel Fair (BBTF) will take place from 11-13 Jun at the Bali International Convention Centre, Nusa Dua. The event, organised by the Association of Indonesian Tours and Travel Agencies (ASITA), will bring 450 buyers from 45 countries and 300 Indonesian sellers. The event will be held under the theme: "Indonesia: Preserving Green Nature and Cultural Heritage for the World". Bali targets to welcome 14.6-16 million foreign tourists in 2025. BBTF committee is expecting 10%-13% YoY increase in B2B transactions

Marriott International will add 7 new properties in Indonesia in 2025. With these new hotels, Marriott International is set to operate 84 hotels in Indonesia by the end of 2025, and the country will be the company’s second-largest portfolio in the Asia Pacific region. The Regional Vice President of the hotel said they target to operate 100 hotels in Indonesia in the next 3 years. 4 of its properties will open in Q2 2025; Four Points by Sheraton Pontianak, East Kalimantan, with 196 rooms 2 Fairfield by Marriott hotels, in Bekasi, West Java and Bali Kuta, both with 166 rooms The Westin Nirup Island Resort & Spa in Riau Islands with 94 rooms and 52 private villas In Q3 2025, the hotel will open its Four Points by Sheraton Bekasi with 242 rooms Aloft Jakarta Kebon Jeruk with 233 rooms In Q4 2025, the 233-key Aloft Surabaya Pakuwon City will launched The Vice President asked the government to reconsider its policy to freeze spending in hotels, which has impacted the hotel operators, and asked the government to improve connectivity to facilitate tourism growth. He said they have 3 million Bonvoy members in Indonesia and 228 million globally

The Tourism Ministry will cooperate with the Swiss government to improve the quality of vocational tourism education. The ministry said they have been cooperating with the State Secretariat for Economic Affairs (SECO) of Switzerland and Swisscontact since 2018 to improve vocational education and training. The collaboration with the Swiss government included an industry-based curriculum, capacity building for lecturers, improved teaching methodologies, support for facility management, industry collaboration, and policy dialogue. The partnership will continue in 2025 with a focus on increasing understanding of sustainability values and gender equality

Sales of micro enterprises selling takjil (snacks) recorded low sales during the Ramadan month. Shopping malls are also reportedly less crowded. This pattern was unusual compared to previous years. Monthly retail sales growth (IPR) in Feb 2025 recorded only +0.8% MoM, lower than the usual growth recorded before Idul Fitri. From 2018-2024, excluding 2020, the IPR recorded +12.2% MoM on average. Clothing purchases only recorded +0.6% MoM compared to +23.8% MoM in 2018-2024. The Mandiri Spending Index (MSI) recorded a flattening of consumer spending up to 9 Mar, at a lower level than in previous years. Weekly MSI growth in the 1st week of Ramadan was 1.4% compared to 4.7% in 2024. Bank Indonesia’s Consumer Confidence Survey shows the household savings in Feb 2025 dropped to 14.7%, lower than the 2018-2024 average of 16.7%. The government announced incentives such as airfare discounts, 20% off toll fees, bonuses for ride-hailing drivers, and reduced VAT on transportation tickets. PT KAI offered 4.6 million train seats, but the company only managed to sell 2.5 million (55%)as of 12 Mar. The Organisation of Land Transportation Owners (Organda) reported only 60% of bus occupancy rates for mudik, compared to 80%-90% last year

The Indonesian government and the World Bank’s joint initiative, the Indonesia Tourism Development Project (ITDP), have helped communities in Lombok and Lake Toba improve their livelihoods. The initiative focuses on sustainable tourism development to benefit both people and the environment. By the end of 2024, ITDP is projected to benefit 1.6 million people in Lombok

The President said Indonesia will join the New Development Bank (NDB), a bank developed by BRICS member countries. NDB President said Indonesian President submitted projects for potential partnership with NDB

The IDR has dropped to its lowest level against USD to reach 16,640 IDR, for the first time since 1998. Indonesia’s central bank will intervene to maintain investor confidence

The Indonesia Event Industry Council (Ivendo) Bali’s Chairwoman said 85% of industry players recorded a revenue drop following reduced budget for government meetings and seminars. Ivendo conducted a survey involving 44 event industry players who said around 750 events scheduled for Q1 2025 have been impacted by the government’s cost-cutting measures. Ivendo projects that Bali’s event industry will suffer 3.15 trillion IDR losses in 2025 if the trend continues. A survey found that 2,500 full-time and part-time employees are at risk of losing their jobs or suffering from reduced income. The Indonesian Hotel and Restaurant Association (PHRI) published a report highlighting that the majority of the industry players believe that budget cuts mostly affected MICE facility utilisation. The report shows that weak demand will affect the occupancy rates. Bali accounts for 11.2% of MICE activities in Indonesia in 2024, second to Jakarta

The Bali Government published new regulations for foreign tourists on 24 Mar. Bali Governor said the circular will outline obligations, prohibitions, and sanctions for the tourists. He said the tourists have to respect the customs, traditions, arts and culture. The regulations mandate foreign tourists; - to behave respectfully in holy areas, tourist locations, restaurants, shopping areas, streets, and public places - to pay a 150,000 IDR tourism levy - must be accompanied by a licensed tour guide - drive responsibly by obeying the rules - to book accommodation at a licensed establishment, - to protect nature - against conducting business activities

Indonesia recorded 2,139,161 tourists from China in 2018, and in 2024, Chinese arrivals reached 1,198,582. Indonesia’s Ambassador to China said they are aiming for 2 million Chinese in 2025 with the increasing number of direct flights between both countries

1 tourist was killed and 2 injured after a snorkelling boat carrying 13 people, including 11 Australian tourists capsized. A nearby boat rescued the passengers. The Sea Dragon boat was on its way to Nusa Penida from Bali, when it was capsized by large waves

The Special Economic Zone (SEZ) for medical tourism will launch in Sanur, Bali, in Jun. InJourney, the company behind the project, aims to make Sanur SEZ a leading destination for medical tourists. Bali International Hospital in Sanur SEZ is set to open in May 2025. Besides healthcare facilities, Sanur SEZ will have a 5-star hotel with 457 rooms, an Ethnomedicinal Botanical Garden, commercial areas, an MSME centre, restaurants, and other amenities. Sanur SEZ is expected to create 43,000 jobs and is projected to contribute $1.28 billion USD. Annually, 2-3 million Indonesians visit Singapore, Malaysia, and Thailand for medical treatment, costing 97 trillion IDR in foreign exchange outflow. InJourney partnered with renowned medical institutions from Germany, Japan, and the US to establish centres of excellence in Sanur. This initiative is expected to reduce medical tourism outflow by 50 trillion IDR

The Health Ministry will offer a Free Health Screening Program at terminals, ports, stations, and airports for holiday travellers. The Minister said more than 1 million people have registered for the Free Health Screening program since it was launched on 10 Feb, and the number of participants is currently reaching 90,000 per day. He hopes the total number of participants will reach 50 million by 2025

The Indonesian Chamber of Commerce and Industry (KADIN) predicts a 12.3% drop in money circulation during the 2025 Idul Fitri holiday compared to 2024. The Transport Ministry expects -24% in the number of travellers from 193.6 million in 2024 to 146.5 million in 2025. In 2024, Idul Fitri was estimated to have driven 157.3 trillion IDR in money circulation. The number is expected to drop to 138 trillion IDR in 2025. An estimated 36.26 million families are expected to participate in the mudik homecoming, with a 4-person family estimated to bring in 3.75 million IDR from urban centres to their hometowns. The drop in travellers is likely to due many households preparing for major expenses in Jun for the new school year. The Center of Economic and Law Studies (CELIOS) Executive Director said the incentives failed to encourage citizens to travel because of a “spending power crisis”. He said job insecurity with the recent mass layoffs, the bankruptcy of PT Sri Rejeki Isman, and delayed recruitment of 1.2 million civil servants contributed to a lower number of travellers

The Bali Governor said they will announce plans to encourage more tourists to pay the Bali Tourism Tax Levy. They are planning to give 3% commission from the levy per tourist to businesses that signed as partners to collect the tourism levy. Chairman of Commission II of the Bali DPRD said they are partnering with airlines to explore whether the tourism tax fee can be integrated with the airfares. He said with this method, they can collect over 90% of the payments for tourists

The Indonesian Exhibition Companies Association (IECA) and the Indonesian Hotel and Restaurant Association (IHRA) signed an MoU to strengthen cooperation and shift from government-events focus to private sector-driven events. Hotels will offer competitive rates to IECA members by ensuring the exhibition organisers secure cost-effective spaces

Central Java is preparing to welcome 36.6 million travellers for the 2025 mudik season for Idul Fitri, 25% of all travellers. Other regions will record; - East Java, 27.4 million travellers (18.7%) - West Java, 22.1 million (15%) - Yogyakarta, 9.4 million (6.4%) Central Java Governor said the repair work on national and regional roads is nearing 80% completion

Data shows currently 2-3 million Indonesians travel abroad for treatments annually, with a foreign exchange value of 97 trillion IDR. President Director of InJourney, the company in charge of the Medical Tourism Special Economic Zone Sanur (KEK Sanur), said that it will be the first integrated medical tourism complex in Indonesia that includes hospitals, specialist clinics, medical research centres, hotels, and convention centres. The new Bali International Hospital will open in May 2025

The Finance Minister denied resignation rumours and vowed to maintain fiscal discipline. The stock market fell 7.1% on Tuesday and the IDR dropped 2-week low against the USD due to concerns over the government’s fiscal strategy

Bali will launch a new shuttle bus service in Sanur to ease the congestion issue. The shuttle service will be operated by 20 electric buses in its first phase

The Bali Government and the Australian Consulate will work together to encourage positive behaviour from Australian tourists visiting Bali. Australia has pledged to support in ensuring law and order. In 2024, over 1.5 million Australians visited Bali

Minister of Culture said the government will register tempeh (fermented soybean) for UNESCO’s list of intangible cultural heritage. During a culinary culture event in Depok, West Java he said culinary is a cultural expression and a part of local traditions

Newly elected Governor of Bali has explained that they are committed to major infrastructure projects from 2025-2028, and they should be completed in the worst-case scenario by 2029. Some of these include: the Bali Cultural Centre, development of roads and shuttles in Sanur-Denpasar area and a subway project in urban areas. New road projects to ease traffic around Denpasar will also be undertaken

The Transportation Ministry predicts there will be a -23% YoY drop in mudik homecoming traffic in 2025 of 146.48 million

The Transportation Minister said the ministry is expecting the peak 2025 Eid al-Fitr homecoming exodus to happen on 28 Mar with 12.1 million people travelling in a single day. The return flow is expected to reach 31.49 million on 6 Apr. Based on a survey by the Transportation Ministry in collaboration with Litbang Kompas the total travellers is expected to reach 146.48 million, equivalent to 52% of the total population of Indonesia

The Bali tourism tax has generated 317 billion IDR since it launched on 14 Feb, equating to around 35% of all international arrivals to Bali paid their fee. From Jan-6 Mar 2025, 46.55 billion IDR has been raised by the tourism tax. The Bali Provincial Government explained that the fee needed to be “massively” brought to the awareness of tourists, and they also want to increase the number of payment methods. They are also looking to work with airlines so that those travellers who have not paid their tourism tax prior to departure will not be issued a boarding pass

Topotels Hotels and Resorts, a hotel management company in Indonesia, is expanding its portfolio and business model. The CEO said they will open Ayola Signature Batam with 90 rooms in 2025. He said there is an ongoing development in Cisarua, Puncak near Jakarta with facilities including glamping and 30 luxury villas. Others include projects in Kediri, East Java, and Papua under the Ayola brand. Topotels manages 11 hotels in Indonesia and 1 in Malaysia under 6 brands. The CEO said there are few projects in Malaysia including the Wyndham Semporna Resort and a plan to manage a hotel in Bukit Bintang, Kuala Lumpur

House of Representatives Commission VII, which oversees tourism and business associations, asked the government to set up an Indonesian tourism board to promote and support the tourism industry, similar to those in Malaysia and Singapore. The Tourism Ministry’s budget was cut from 1.48 trillion IDR in 2024 to 884.9 billion IDR in 2025 as part of the austerity measures. Indonesian Chamber of Commerce and Industry (Kadin) Vice Chairwoman for tourism said Indonesia is placed 5th in Southeast Asia’s inbound ranking in 2025 after Thailand, Malaysia, Vietnam, and Singapore. International Congress and Convention Association (ICCA) data shows Indonesia scored 68 points for MICE events lower than Singapore with 152, Thailand with 143, and Malaysia with 104. Commission VII Vice Chairman said the tourism board will execute regulations from the Tourism Ministry and the government. He said the board will be in charge of supporting the tourism industry, promotion, event organisation, sustainable infrastructure development, and advocating policies. He said the board can manage with its own funds to reduce reliance on the Tourism Ministry

Deputy Chair of the National Vesak Committee 2025 said the National Vesak Celebration will be held on 12 May at Borobudur Temple, Central Java. The event is expected to attract more than 150,000 people. Various activities are planned including free medical treatment for 8,000 people and a lantern festival

Tourists in Bali on 29 Mar are reminded that all travel will not be allowed for 24 hours as the island observes Nyepi Day. Most shops and restaurants are expected to close until midday on 30 Mar to observe this holiday

TravelInsurance.com.au’s report showed that 1/3rd of Australians’ international trips in 2025 will be to Southeast Asia. The data shows demand to Thailand, Vietnam, Indonesia, and Malaysia is expected to surge by 42% in 2025, and Southeast Asia is expected to attract 4 million Australian tourists

The Head of Water Resources (SDA) of the Public Works and Spatial Planning Agency (PUPR) of Badung Regency said the Uluwatu Sea Wall Project is 86% complete, still lower than 90.5% targeted completion. The project was given a 50-day extension in Dec 2024. The project faced controversy after it was approved before the completion of an environmental impact assessment

PT Kereta Api Indonesia (KAI) Operation Area 1 Jakarta expanded its long-distance train services to accommodate the anticipated passenger surge during the Eid period. KAI will increase the long-distance train to 1,858, with 84 trips on average per day, from 21 Mar-11 Apr. Public Relations Manager of KAI said they will add 32 additional long-distance train trips on 26-29 Mar and 4-7 Apr, making the total daily trips to 87. KAI will offer 1,009,642 seats in total, +3% of normal period, with 45,893 seats on average daily. He said 520,768 tickets have been sold with a 52% occupancy rate. Gambir and Pasar Senen stations are the primary departure points for long-distance train passengers. There will be 990 scheduled train journeys with 445,316 seats from Gambir Station, 20,242 seats on average daily with a 39% occupancy rate

Bali will develop a new international port known as Marina International off Serangan Island, Denpasar, which would be able to accommodate up to 140 luxury yachts. PT Bali Turtle Island Development Communication Head said their project is set to be completed in 2028 and the development will hopefully bring more tourism infrastructure into Serangan Island, such as hotels, restaurants, and shops

The Tourism Ministry is supporting efforts to improve cleanliness at tourist destinations to improve Indonesia’s tourism ranking. The Deputy for the development of event organisers at the Tourism Ministry said Indonesian tourist destinations still rank low in the cleanliness and health category. He said the country ranks 89th out of 114 countries in terms of cleanliness and health. He said the government aims to reach the top 50 or 60 ranking. The ministry is carrying out the Clean Tourism Movement (GWB) to support improving cleanliness and health at tourist destinations. The ministry will educate and support MSMEs to prioritise hygiene in the food preparation process at tourist destinations. Indonesia ranked 22nd out of 119 in the Tourism and Travel Development Index of 2024

The new Regent of Badung took part in a beach clean-up effort as part of his commitment to keep the regency’s environment safe and clean for all. The Regent said they are committed to better organising and streamlining operational management of beach areas and popular tourist destinations such as Kuta, Canggu, Jimbaran, and Kedonganan. The regency will develop pedestrian paths, rearrange cafes and tourist facilities for better aesthetic and comfort. He highlighted the importance of better waste management and collective responsibility of local businesses and communities to keep the area clean

The Transportation Ministry will continue to offer the free mudik (exodus) program for Idul Fitri holiday in 2025 to reduce private vehicles and congestion. - The Land Transportation Directorate General will provide 520 buses for 21,536 passengers and 10 trucks to carry 300 motorcycles to/from 31 destinations in Sumatra, West Java, Central Java, and East Java - The Sea Transportation Directorate General will offer free tickets for 47,816 passengers for 153 routes - The Railway Directorate General will provide a quota of 16,960 passengers and 7,424 motorcycles - The Transportation Minister hope those eligible will be granted the ability to leave early to work remotely. The ministry is developing an app to prevent multiple registrations for 2025’s free mudik program

The Bali Hotels Association (BHA) said they will continue to support Sungai Watch to reaffirm their commitment to environmental sustainability and fight against plastic pollution. BHA played an important role in installing a second trash barrier at Ji Pendawa Kekeran river in Badung to protect Bali’s waterways

Private villa managers in Bali have created the Bali Villa Rental Management Association to tackle the illegal villas in Bali, and to protect tourists and local business owners. The Chairman of the Bali Villa Rental Management Association said 70 companies manage over 1,000 private tourism rental properties. He said the Bali government asked for their support to make it harder for foreigners to invest in Bali through the marriage system, where the foreigners who are married to a Balinese person can access land and permits more easily. The Association will be a central point of accountability for legally operating villa management businesses by creating a better framework

Tourists looking to visit Bali are advised to book their accommodation in advance as the Nyepi holiday will fall on the same weekend as the Eid al-Fitr. The accommodations are getting booked quickly due to long holidays. The Deputy Chairman of the Indonesian Hotel and Restaurant Association (PHRI) said over 20,000 domestic tourists will visit Bali during the Eid al-Fitr holiday and the hotel occupancy rate will increase by 10% over the festival period. The Bali Tourism Office Head said the hotel occupancy will increase by 20%. He said a week before Eid, tourists will start to visit Bali and the hotels will record 60%-70% of occupancy rate

Human Development and Culture Coordinating Minister asked regional governments to improve infrastructure such as roads, bridges, and other facilities in anticipation of the Eid al Fitr travel. He said the government has inspected key infrastructure and identified potential disaster-prone areas. The National Disaster Mitigation Agency (BNPB) and the National Search and Rescue Agency (Basarnas) will be on standby at the risky location

Deputy Tourism Minister said Indonesia has a potential to become a global cruise hub and they are collaborating with international cruise operators to establish a home port in Indonesia. Benoa Port in Bali plays a key role in this vision. In 2024, Benoa Port handled 59 cruise ships, an increase from 48 in 2023. 77 cruise ships are expected to visit in 2025. With 75% of the world’s maritime biodiversity, Indonesia aims to attract 14.6-16 million foreign tourists in 2025. Bali accounted for 45% of the tourist visit in 2024

Ubud will allocate funds to restore and reconstruct the Ubud Art Market after part of the building was destroyed by fire in Aug 2024, affecting 1,000 traders and 400 businesses

Jasa Marga’s President said they are expecting the peak of the homecoming traffic for Eid al-Fitr 2025 and Nyepi holiday will be on 28 Mar. During the peak Eid homecoming, the number of vehicles is expected to reach 232,000 vehicles, +50% compared to normal traffic. The return flow is expected to occur on 6 Apr and the number of cars will reach 276,000 vehicles, +62% of normal levels and +3% YoY. The return flow traffic entering Jakarta is expected to be 2.29 million vehicles, -0.5% YoY

Thousands of people were evacuated from flooded areas in Jakarta on 4 Mar. There were no immediate casualties reported. The rain triggered floods up to 3m and blocked roads, submerged 1,000 houses