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Business as Usual

Fuel Price Increase Not Expected to Dent Indonesia’s Fast-Growing Tourism Industry

(6/23/2013) Indonesia’s Minister of Tourism and the Creative Economy, Mari Elka Pangestu, has declared that domestic and international tourism targets will not be revised following dramatic increases of between 22%-44% in fuel prices.

Speaking at the opening of a cultural festival in Jakarta on Wednesday, June 19, 2013, Pangestu said, “There will be no correction in tourism targets because all impacts and implications have been take into consideration.”

Indonesia continues to target 9 million foreign tourist visits for all of 2013. Meanwhile, the government is holding firm on its expectation that 250 domestic tourist trips will be undertaken in the current year, a number the Ministry of Tourism thinks will increase to 400 million trips by 2022.

The Minister, quoted in The Bali Post, said she anticipated that the tourism industry would find ways to be more efficient in its use of energy, such as occurred after the last increase in fuel costs. The higher energy cost is expected by the Minister to give new impetus to green hotel and green environment programs.