US President Donald Trump’s announcement of new international trade tariffs has left the world reeling. The tariffs will have an impact on everything from food to clothing, cars to electrical goods.
The US has imposed a 32% tariff on all goods imported from Indonesia. Ministers in Indonesia have been talking to the media about the impact the changes will have on the Indonesian economy and especially the tourism sector.
The Indonesian Minister for Tourism, Widiyanti Putri Wardhana, has spoken to the media following the announcement of President Trump’s new reciprocal tariffs.
Minister Wardhana explained that the nation’s tourism sector could act as a national defense tool in response to the economic pressures triggered by the new tariffs.
Minister Wardhana explained “When exports of goods are subject to high tariffs, we must look at other sectors that can be a counterweight.”
“Tourism is a form of service export that is not affected by trade tariff policies. By attracting more foreign tourists, we can maintain the stability of the Rupiah and foreign exchange reserves.”
She called for tourism stakeholders nationwide, but especially in high-concentration areas like Bali, to focus on the economic potential of tourism as a service export rooted in natural wealth, cultural arts, and the creative economy of the nation.
Minister Wardhana continued “For tourism business actors in all regions to prepare and act, taking advantage of opportunities from changing global dynamics to promote Indonesia as a world tourism destination. The readiness of destinations, tourism products, tourism businesses, workforce, and targeted promotions need to be pursued in an integrated manner.”
She was clear that Indonesia must double down on its efforts to promote high-quality tourism experiences to tourists, to help encourage tourists to stay longer, spend more, and connect in more meaningful ways during their stays.
Minister Wardhana added that Indonesia must “Focus on high-quality tourism development. The Ministry of Tourism invites tourism business actors in all destinations to not only pursue the number of visits but also to strive for quality tourism experiences that attract higher tourism spending.”
Indonesian House of Representatives Member, Novita Hardini, released a statement on Sunday 6th April to ease the concerns of her constituents of the pressure Trump’s tariffs will have on the exchange rate of the Indonesian Rupiah.
Hardini shared “This is a sign that domestic tourism must be a priority, not only as an alternative but as a main choice.” Adding “Trump’s policy can be a motivation for a change in direction if we can seize opportunities amid a crisis.”
Domestic tourism has always been of huge importance to the Indonesian economy. Every year domestic tourists accumulate 1 billion trips.
Over the Eid holiday period alone over 400,000 domestic tourists traveled to Bali, an increase of 6% compared to the same period in 2024.
Data shows that the average length of stay for a domestic tourist visiting Bali during the Eid holiday was 3-4 days, with an average spend of IDR 500,000 – IDR 1,000,000 per day.
With the new tariffs in place, tourists planning trips to Bali in the coming months may notice small changes in the cost of goods on the island.
However, one of the easiest ways to remain unaffected by the tariffs is to support local, buy local, stay local, and act local. Doing so is also a way to travel and explore more sustainably in Bali.
From prioritizing eating at locally owned restaurants that use locally grown produce, to buying souvenirs and handicrafts that are actually produced in Bali.
Even exploring luxury boutiques that showcase the finest clothes and creations Bali and Indonesia have to offer are all ways to not only support local businesses but also access greater value for money while on vacation.
Staying in established hotels, guesthouses, and villas that have prioritized local building materials and Balinese or Indonesian architecture is also a way to help support sustainable tourism in Bali, and gain more authentic travel experiences along the way.
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