In a detailed exposition during The Weekly Brief with Sandi Uno held at the Ministry of Tourism and Creative Economy in Jakarta on Monday (22/4), Minister Sandiaga Uno provided insights into the detrimental effects of the rupiah’s slide towards Rp17,000 per US dollar on Indonesia’s tourism sector. While acknowledging potential benefits such as enhanced competitiveness, Sandiaga underscored the predominantly negative impact this depreciation poses to the business landscape.
Addressing the first concern, Sandiaga expressed apprehension regarding the inevitable rise in airfare prices driven by the volatility in aviation fuel costs. Such an increase, he noted, could disrupt domestic tourism and deter foreign tourists from visiting Indonesia. To mitigate this, Sandiaga emphasized the importance of crafting affordable tourism packages tailored to meet the evolving needs of travelers.
“In response to the market dynamics, initiatives like purification ceremonies (melukat) in Bali have gained popularity due to their affordability,” Sandiaga remarked, highlighting the importance of adapting to changing consumer preferences.
Furthermore, Sandiaga cautioned against potential price hikes in domestic tour packages, urging industry stakeholders to consider the purchasing power of consumers amidst the rupiah’s depreciation. Notably, he emphasized the need for price adjustments to ensure accessibility and inclusivity within the tourism sector.
The rupiah’s decline coincided with the Eid al-Fitr holiday period and was compounded by geopolitical tensions, particularly concerning Israel and Iran. Despite these challenges, the rupiah experienced a marginal uptick to Rp16,237 per US dollar on Monday (22/4) afternoon.
