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Tourism seen as economic shield against U.S. tariffs, says Indonesian minister

0 Comment(s)Print E-mail Xinhua, April 5, 2025
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JAKARTA, April 5 (Xinhua) -- Tourism can serve as an economic defense tool against U.S. reciprocal tariff policies, countering the risks they pose, an Indonesian minister said here.

Indonesian Tourism Minister Widiyanti Putri Wardhana said that 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 United States could accelerate the weakening of the rupiah against the U.S. dollar.

"When exports of goods are subject to high tariffs, we must look to other sectors that can serve as a balance," Widiyanti said.

"Tourism is a form of service export that is not impacted by trade tariff policies," she added in a press release issued on Saturday.

The minister noted that Indonesia 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, we will be able to maintain the stability of the rupiah and foreign exchange reserve," she said.

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

Indonesia possesses significant tourism potential, but the 13.9 million foreign visitors recorded in 2024 are still very concentrated in certain destinations. The ministry urges all tourism stakeholders to focus on both increasing visitor numbers and enhancing the quality of visits, which may generate higher spending, as the opportunity is still wide and open.

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

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