Tourism an economic shield against US new tariffs: Indonesian Minister

Tourism industry can serve as an economic defence tool helping Indonesia mitigate negative impacts caused by U.S. reciprocal tariffs, said Indonesian Minister of Tourism Widiyanti Putri Wardhana.

According to the minister, the tourism sector, classified as a service industry, is not subject to such tariffs and continues to generate foreign exchange.

Widiyanti made the statement in response to experts' concerns that barriers to Indonesia's exports to the U.S. can accelerate the weakening of the IDR against the US dollar.

When exports of goods are subject to high tariffs, Indonesia must look to other sectors that can serve as a balance for its economy, she stressed, adding that tourism is a form of service export that is not impacted by trade tariff policies.

The minister noted that the Southeast Asian nation can optimize the enormous potential of the tourism sector as a major source of foreign exchange that is free from trade barriers.

By attracting more foreign visitors, the country will be able to maintain the stability of the IDR and foreign exchange reserve, she said.

To promote tourism development, the Ministry of Tourism is encouraging businesses across the country to take advantage of opportunities arising from shifting global dynamics to promote Indonesia as a world-class tourist destination.

The ministry urges all tourism stakeholders to focus on both increasing visitor numbers and enhancing the quality of tours, which may generate higher spending, and open up more opportunities within the industry.

With these measures, the minister is optimistic that the tourism industry can support the national economy amid ongoing external pressures and help position Indonesia as a leading global destination.