Indonesia Tourism Surges as Foreign Arrivals Hit Highest Level Since 2020

JAKARTA, Investortrust.id — Indonesia’s travel sector is roaring back, with foreign visitor arrivals reaching 7.45 million in the first half of 2026—a post-pandemic record for the January-to-June period.

Statistics Indonesia (BPS) reported Monday that foreign arrivals jumped 5.71% compared to the same period last year. In June alone, the archipelago welcomed 1.39 million international travelers, representing a 2.15% increase year-over-year as regional tourism demand picked up momentum.

The rapid rebound in arrivals underscores Southeast Asia’s booming tourism recovery and provides a direct boost to hotel operators, aviation networks, and retail spending across the region. However, a slight decline in average tourist spending highlights an emerging challenge for policymakers: converting higher visitor volumes into sustained economic value per traveler.

Australian and Malaysian Travelers Lead Demand

Malaysian tourists accounted for the largest share of foreign arrivals in June, generating 386,840 visits or 27.9% of the total. Australia ranked second with 169,910 visits (12.3%), followed closely by Singapore with 167,500 visits (12.1%), China with 117,500 visits (8.5%), and Timor-Leste with 74,950 visits (5.4%).

On a monthly basis, arrivals from Singapore surged 24.26%, while visits from Malaysia and Australia grew by 13.25% and 8.04%, respectively. Compared to June 2025, Malaysian visits climbed 9.42%, Singaporean visits rose 7.53%, and Australian arrivals grew 8.61%.

Bali remains the undisputed hub for international travel. I Gusti Ngurah Rai International Airport in Denpasar recorded 604,962 foreign arrivals in June, dominated heavily by Australian holidaymakers, followed by visitors from China, India, Malaysia, and Singapore. Soekarno-Hatta International Airport near Jakarta served as the second busiest entry point with 240,681 visits, while Batam logged 156,984 arrivals.

Spending Normalizes as Hotel Occupancy Rises

While headcounts expanded, tourists spent less per trip in the second quarter. BPS noted that average expenditure per foreign visitor slipped to $1,285 in Q2 from $1,345.61 in the first quarter, alongside a modest contraction in average length of stay from 10.83 nights to 10.30 nights.

Accommodation absorbed the largest share of visitor budgets at 37.21%, virtually flat compared to the previous quarter's 37.23%. Food and beverage accounted for 19.81% of total outlay, while shopping and souvenirs comprised 11.04%. Entertainment spending absorbed 8.46%, followed by local tour packages at 5.21%, local transport at 5.19%, domestic flights at 3.58%, and vehicle rentals at 3.93%.

Domestic travel also provided a reliable floor for hospitality operators. Indonesian residents logged 107.19 million domestic trips in June, lifting the cumulative first-half total to 630.41 million trips—a 2.71% increase from 613.78 million trips in 1H25.

Outbound travel by Indonesian citizens reached 4.46 million trips in the first half, down 2.40% year-over-year. However, June outbound departures spiked 39.32% month-over-month to 766,780 trips, driven in part by returning Hajj pilgrims.

The surge in overall mobility lifted star-rated hotel occupancy rates to 54.28% in June, up 4.30 percentage points year-over-year. Bali achieved the nation’s highest star-rated hotel occupancy rate at 64.87%, followed by Gorontalo at 60.68% and Yogyakarta at 60.36%.