DENPASAR, Bali — Bali is becoming significantly more affordable for foreign tourists as Indonesia’s rupiah continues to weaken against the US dollar, giving overseas visitors stronger purchasing power across the island and other major destinations nationwide.
The rupiah slid further at the end of the week, closing near Rp 17,700 per US dollar and moving closer to the Rp 18,000 mark amid ongoing global economic pressure and capital outflows from emerging markets.
For travelers carrying US dollars, euros, or Singapore dollars, the exchange rate shift means cheaper hotel stays, dining, transportation, and holiday activities in Indonesia compared to previous years.
Tourism industry players say the weaker rupiah could help Indonesia compete more aggressively with other destinations in Southeast Asia, particularly among long-stay and budget-conscious travelers.
Destinations such as Bali, Labuan Bajo, Lake Toba, and Likupang are expected to benefit as international visitors gain more value from their spending in Indonesia.
Tjokorda Oka Artha Ardana Sukawati, chairman of the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI), said the weaker rupiah may encourage foreign tourists to extend their holidays and spend more during their stay on the “Island of the Gods.”
“From the tourists’ expenditure side, this could be beneficial for foreign visitors, although they also need to consider higher airfare costs and global geopolitical conditions linked to rising fuel prices,” Sukawati said.
Still, the currency depreciation is also increasing pressure on hotels and tourism businesses that rely heavily on imported products and materials.
“A stronger dollar increases operational costs because many of the materials used by hotels are imported,” he said.
At the same time, hotel operators are facing increasingly tight competition, making it difficult to sharply raise room rates despite rising expenses.
For many international travelers, the exchange rate shift effectively makes Bali feel cheaper without changing the experience itself — a dynamic tourism operators hope could help sustain visitor arrivals during a period of global economic uncertainty.
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