The year 2025 will be an important milestone for Indonesian tourism. After going through difficult times due to the pandemic, this sector is now once again becoming the fuel for the national economy. The Indonesian government, through the Ministry of Tourism and Creative Economy, is targeting tourism’s contribution to the Gross Domestic Product (GDP) at 4.6 percent, with potential foreign exchange earnings reaching US$22.1 billion, and the number of foreign tourist arrivals between 14.6 million and 16 million people.
This ambitious target is not just a number, but a reflection of the belief that Indonesia has the appeal to compete with world-class tourist destinations. Two major trends predicted to be in the spotlight in 2025 are eco-tourism, and luxury hospitality. Eco-tourism, which focuses on environmental sustainability, and luxury hospitality, which affirms Indonesia as a home for exclusive experiences.
INDONESIA’S TOURISM GROWTH PROJECTIONS
According to a report by Market Research Indonesia, in 2025 the travel and tourism sector is expected to contribute Rp1,269.8 trillion, or around 5.5% of the national GDP (Market Research Indonesia, 2025). This figure marks a historic achievement that even surpasses pre-pandemic performance.
This growth is supported by a number of government initiatives:
- Visa policy reform through Visa Free Short Stay (BVKS) for priority countries, thereby facilitating access for foreign tourists.
- Development of Super Priority Tourism Destinations (DPSP), such as Borobudur, Lake Toba, Labuan Bajo, Mandalika, and Likupang.
- Global digital promotion and improved air and land connectivity to make it easier for tourists to reach locations.
This combination of policies points to a new direction: Indonesia is no longer just chasing tourist numbers, but also the quality of the experience.
THE RISE OF LUXURY TRAVEL IN INDONESIA
This trend is also evident in the rise of foreign investment and collaboration with international brands. Big names in the global hospitality industry are starting to take notice of areas such as Nusa Dua, Ubud, and Labuan Bajo, seeing great potential for premium tourists who are looking for more than just a regular vacation. They want personalized experiences: from personal chefs to exclusive trips on yachts or helicopters.
On the other hand, upper-middle-class domestic tourists are also increasingly looking for different experiences within the country. The presence of five-star resorts, private villas, and wellness retreats with holistic health programs makes Indonesia competitive compared to Thailand or the Maldives. This means that luxury tourism in Indonesia is not only for foreign tourists, but also a top choice for locals who want to enjoy luxury without having to go abroad.
One concrete example comes from Experience Sonar, a luxury hospitality brand offering unique experiences through three properties:
- Sonar Ukiyo, featuring Japanese minimalist design combined with modern luxury.
- Sonar Paraiso, offering a vibrant atmosphere with personalized service.
- Sonar Di Lusso, exclusive accommodation with high privacy and premium facilities.
Find out more about Experience Sonar
In addition, there are popular destinations such as Bali, Labuan Bajo, and Mandalika—now known for hosting MotoGP—add to Indonesia’s appeal on the international stage. The appearance of global and local brands in the luxury sector is proof that Indonesia is not only selling nature, but also premium experiences.
ECO-TOURISM INDONESIA: A SUSTAINABLE TRAVEL MOVEMENT
In line with growing global awareness of climate change, eco-tourism has emerged as a new magnet. Indonesia itself has prepared eight strategic steps since 2023 to boost environmentally friendly tourism, including accelerating the development of DPSP, sustainable private investment, a more effective visa system, and digital promotion targeting the global market.
Some notable eco-tourism destinations include:
- Raja Ampat, with its rich marine life that is a center of global conservation.
- Komodo National Park, which maintains a balance between the conservation of rare animals and tourist visits.
- Tourist villages in Yogyakarta and Bali that prioritize the empowerment of local communities.
At the global level, the trend of eco-tourism is growing along with the increase in awareness of the travel and eco-footprint and the environmental impact of travel. Indonesia is capturing this momentum by strengthening the concept of community-based tourism, where local communities become an active part of the tourism ecosystem. Not only does this protect the environment, but it also introduces tourists to local culture, cuisine, and authenticity.
Another example is the green tourism village program in Bali and Lombok, where tourists are invited to plant trees, learn handicrafts, or participate in traditional festivals. Activities like these not only provide authentic experiences but also build emotional connections between tourists and the community. As a result, the journey becomes more meaningful, as tourists return home not only with beautiful photos, but also with stories rooted in sustainability and human connection.
BALANCING LUXURY AND SUSTAINABILITY IN HOSPITALITY
The big question for the tourism industry is: how to combine luxury hospitality with sustainability principles?
The answer is beginning to emerge from the practices of a number of brands, including Experience Sonar, which has eliminated single-use plastics and replaced them with reusable materials. Even everyday products such as tissues use biodegradable materials that dissolve in water.
This environmentally aware approach also has added more value: tourists can still enjoy premium comfort while feeling like they are part of the movement to protect the earth. Several generations, such as millennials and Gen Z, who are environmentally conscious, increasingly consider these points as key factors in choosing a destination.
CONCLUSION
The outlook for Indonesian tourism in 2025 looks bright with the combination of growth in luxury hospitality and eco-tourism. With the government’s ambitious targets, infrastructure support, and natural and cultural advantages, Indonesia is ready to welcome global tourists.
Indonesia is no longer just selling the beauty of its beaches or mountains, but offering a harmony between luxury and sustainability. From exclusive villas to authentic tourist villages, 2025 is the perfect time to see how Indonesia positions itself as a destination.
REFERENCES
Oxford Business Group. (2024). Government promotes alternative Indonesian tourism: Increased offerings, government initiatives are expected to help promote alternative locations and attract more international events (The Report: Indonesia 2024). https://oxfordbusinessgroup.com/reports/indonesia/2024-report/tourism/increased-offerings-government-initiatives-are-expected-to-help-promote-alternative-locations-and-attract-more-international-events-overview/
Oxford Business Group Panorama Destination. (6 Mei 2025). Indonesia’s tourism boom: Record arrivals, rising revenues and a bright future ahead. https://www.panorama-destination.com/indonesias-tourism-boom-record-arrivals-rising-revenues-and-a-bright-future-ahead/
panorama-destination.com Market Research Indonesia. (n.d.). Indonesia tourism surpasses pre-pandemic earnings in 2025. https://marketresearchindonesia.com/insights/articles/indonesia-tourism-surpasses-pre-pandemic-earnings-in-2025
TV BRICS. (2025). Indonesia’s Ministry of Tourism confirms 2025 goals. Retrieved from https://tvbrics.com/en/news/indonesia-s-ministry-of-tourism-confirms-2025-goals/
