Sector
Tourism
Indonesia has designated tourism as a primary sector with a strong commitment to integrated infrastructure development and the enhancement of skilled and quality human resources. In 2023, the realization of investment in the tourism sector was predominantly driven by domestic investment (PMDN), reaching Rp 14.9 trillion. The PMDN funds were allocated to various types of businesses, including Rp 8.228 billion for star-rated hotels in West Nusa Tenggara, Rp2.601 billion for tourism areas in DKI Jakarta, and Rp1.656 billion for restaurants in Bali.
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Indonesia has designated tourism as a primary sector with a strong commitment to integrated infrastructure development and the enhancement of skilled and quality human resources. In 2023, the realization of investment in the tourism sector was predominantly driven by domestic investment (PMDN), reaching Rp 14.9 trillion. The PMDN funds were allocated to various types of businesses, including Rp 8.228 billion for star-rated hotels in West Nusa Tenggara, Rp2.601 billion for tourism areas in DKI Jakarta, and Rp1.656 billion for restaurants in Bali.
Indonesia has identified 10 priority tourism destinations, including Borobudur, Mandalika, Labuan Bajo, Bromo Tengger Semeru, Thousand Islands, Lake Toba, Wakatobi, Tanjung Lesung, Morotai, and Tanjung Kelayang. Both domestic and international tourists constitute the country’s tourism market potential. In 2023, the number of foreign tourist visits reached 11.68 million, with the largest contributions coming from Malaysia, Australia, Singapore, China, and East Timor. This increase in visits also corresponds with the growth of tourism foreign exchange earnings, which reached US$6.08 billion in the first semester of 2023.
Major provinces attracting international tourists include Bali, DKI Jakarta, Riau Islands, West Nusa Tenggara, and East Java. Meanwhile, the number of domestic tourist trips in 2023 reached 749,114,709 trips, with DKI Jakarta, DI Yogyakarta, and East Java having the highest travel ratios.
Aside from the tourism sector, Indonesia’s creative economy sector has also shown significant growth, with exports reaching US$11.82 billion in the first half of 2023. The fashion subsector is the main contributor with US$6.56 billion (55.52 percent), followed by culinary products with US$4.46 billion (37.70 percent), and crafts with US$792.67 million (6.71 percent).
Moreover, the sector has realized US$225.28 million in foreign direct investment (FDI) and US$577.87 million in domestic direct investment (DDI) in the first quarter of 2023 out of the sector’s total target investment of US$2.68 billion in 2022. The Tourism and Creative Economy Ministry targets investment in this sector to reach US$6-8 billion, with the hope of creating 4.4 million new jobs in 2024. This investment fund is planned to be allocated for the development of five-star hotel accommodations in super-priority tourism destination areas (DPSP) and 10 other priority tourism destinations.
Meanwhile, realized investments in the tourism sector in 2022 amounted to US$2.33 billion. Furthermore, FDI also contributes significantly, especially reaching Rp8.7 trillion from Singapore amounting to Rp2.458 billion, followed by Hong Kong with Rp1.720 billion, and India with Rp1.385 billion.
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This year's edition of the Wonosobo Traditional Hot Air Balloon Festival was held at Wonosobo Square in Wonosobo Regency, Central Java Province on Mar. 29, 2026. The area was not only crowded with domestic tourists, it also attracted hundreds of international visitors.
The presence of foreign tourists from more than 20 countries is a notable sign that the 2026 Wonosobo Mudik Festival main event is gaining further international recognition.
The Wonosobo Square area was filled with visitors eager to witness the traditional hot air balloon display since morning. Foreign tourists in the crowd enthusiastically captured the moment as dozens of balloons with gorgeous designs were lifted into the air and adorned the Wonosobo sky.
Wonosobo Regency Tourism and Culture Agency Head Fahmi Hidayat called this phenomenon a positive sign for the development of regional tourism towards international stature.
"The presence of international tourists this year is an important indicator that the Wonosobo Balloon Festival has international appeal. This is not just a local event, it is [also] starting to attract international attention," he noted.
Fahmi revealed that the number of tourist visits to Wonosobo Regency reached more than 300,000 in Mar. 22–28. The number of visitors was projected to reach 40,000–50,000 people, including around 500 international tourists.
These tourists come from various countries, such as Pakistan, India, Palestine, France, Italy, the Netherlands, the United States, Canada, Belgium, Thailand, Malaysia, the Philippines, Japan, South Korea, China, South Africa, and Australia.
Fahmi stated the main attraction of the festival lies in the uniqueness of the traditional hot air balloons, which are steeped in cultural value. Furthermore, the festival has been granted intellectual property rights since 2025, strengthening its identity as a unique cultural heritage of Wonosobo.
"This festival isn't just entertainment, but also an authentic representation of local culture. That's what attracts foreign tourists to Wonosobo," he explained.
However, Fahmi acknowledged that international participation for this year's Wonosobo Traditional Hot Air Balloon Festival was not as numerous as it could have been. Several participants from Latin America canceled their attendance due to flight problems triggered by the global geopolitical situation.
"Some foreign participants were unable to attend due to the airport closure in Qatar. However, this did not dampen the enthusiasm of foreign tourists who still [managed to] come," he said.
Meanwhile, Wonosobo Tourism and Culture Agency Marketing Division Head and Wonosobo Mudik Festival 2026 Event Coordinator Fatonah Ismangil stated that the increase in international tourist visits was inseparable from the increasingly professional event management.
At the festival's peak, 45 of the best balloons were displayed in Wonosobo's town square. These balloons were selected from around 1,200 balloons flown at 23 locations across nine districts of Wonosobo Regency since Mar. 22, 2026.
"Foreign tourists not only came to the main event, but also spread out to other festival locations in the villages. This demonstrates the expanding impact of tourism," said Fatonah.
She also emphasized the importance of supporting aspects, such as traffic management, cleanliness, and security, in providing a positive experience for tourists.
"We want to ensure that international tourists have a positive experience during their stay in Wonosobo. This is important for building the destination's image globally," she said.
In addition to being a cultural attraction, the festival also had a direct impact on the local economy. The presence of foreign tourists helped boost transactions among micro, small, and medium enterprises as well as the culinary, and hospitality industries in general.
