A Rising Tide Should Lift All Boats — Tourism Could Be Our Strongest Sail
By Teguh Anantawikrama
Vice Chairman, Indonesian Chamber of Commerce (KADIN) and
Chairman, Indonesian Tourism Investor Club
INVESTORTRUST - A familiar proverb tells us: “A rising tide lifts all boats.” For Indonesia today, this saying carries both promise and a challenge. Our economic fundamentals remain strong.
Exports are robust, industrial downstreaming is adding value at home, and digital adoption is transforming our micro, small and medium enterprises (MSMEs) at an unprecedented pace. In May alone, Indonesia recorded a USD 4.9 billion trade surplus — a clear sign that our economic tide is indeed rising.
Yet we must ask: Are all Indonesian families and communities feeling the lift equally?
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Tourism Powers Shared Prosperity
One sector stands out as a powerful connector between growth and inclusive benefit: tourism. Before the pandemic, tourism supported more than 12 million jobs and contributed significantly to local economies across our archipelago — from homestays in rural villages and batik workshops in small towns to fishing communities supplying fresh seafood to hotels and restaurants.
Today, with global travel rebounding, Indonesia has the opportunity to rebuild tourism not only as an economic driver but as a force for equitable development. Why tourism must be central to Indonesia’s inclusive growth strategy:
First, tourism spreads income widely and quickly. Well-managed tourist villages, cultural attractions, and local culinary hubs can transform entire communities, providing livelihoods to those who may have few other opportunities.
Second, tourism often catalyzes critical infrastructure. New roads, airports, and digital connectivity initially built to serve visitors end up unlocking broader economic potential for local farmers, traders, and schoolchildren.
Third, tourism amplifies Indonesia’s soft power. By promoting authentic cultural and culinary experiences, we not only attract discerning travelers but also preserve and elevate our intangible heritage — from traditional dance to crafts and regional cuisines.
Fourth, today’s travelers care about sustainability. Eco-tourism and community-based tourism align well with global trends. These models can protect our biodiversity, ensure fair benefit-sharing, and empower local communities to be stewards of their natural and cultural resources.
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Raising Quality Standards
Yet realizing tourism’s full potential demands concrete improvements. We must raise quality standards and invest in workforce training so that Indonesian destinations can compete at a premium level.
Access to capital must be made easier for local entrepreneurs, cooperatives, and village-owned businesses (BUMDes). Policies across ministries must be harmonized to avoid duplication and ensure every rupiah invested generates meaningful impact.
Equally important is destination management. Tourism should never come at the cost of environmental degradation or cultural exploitation. Sustainable and regenerative principles must guide every step — from planning new resorts to regulating visitor numbers in sensitive areas.
From my perspective in the Chamber of Commerce and as Chairman of the Indonesian Tourism Investor Club, I can attest that investor interest in Indonesia’s tourism is strong. Investors seek clear regulations, long-term policy consistency, and credible local partners who share sustainability values. When these conditions are met, investment flows — and so do the benefits, reaching even the smallest businesses and remote communities.
Our vision for Indonesia Emas 2045 cannot rest on industrial and export growth alone. Tourism must be nurtured as one of our best tools to lift every boat in our vast archipelago — from the fishing canoes of Sulawesi to the cultural hamlets of Java and the homestays of Eastern Indonesia.
Let us ensure that as the economic tide rises, we do not leave any community stranded. By steering tourism growth wisely, we can build an economy that is not only stronger but also fairer and more sustainable for generations to come. ***