# Indonesia Economic Trends: Tourism, Halal & Investment

> Live situation record from CLSTR: https://clstr.news/situations/imd-world-competitiveness-rankings-2026
> Updated: 2026-09-10T01:18:09.000Z. Sources: 52. Developments: 21.

Indonesia’s IMD World Competitiveness Ranking slipped to 48th in June 2026 due to declines in business, government, and infrastructure efficiency. Despite this, the economy showed resilience with a GDP growth of 5.29% in the second quarter and a cumulative growth of approximately 5.45% for the first semester of 2026.

The tourism sector remains a primary driver of stability. International arrivals in H1 2026 reached 7.45 million, a 5.71% year-on-year increase, supported by Rp39.68 trillion in tourism investment. To bolster growth, Coordinating Minister for Economic Affairs Airlangga Hartarto identified shopping tourism as a ‘low hanging fruit’ to capture domestic expenditure. Additionally, the Ministry of Tourism is mapping the wellness tourism ecosystem to strengthen service competitiveness. 

Efforts to expand tourism reach have recently focused on local development and international market expansion. In South Sulawesi, the Appalarang Tinadung destination in Ara Village has emerged as a notable site featuring limestone cliffs and clear waters, having overcome previous infrastructure challenges regarding road access and clean water. In Riau, the Tanjung Datuk area near the Siak River is being promoted for its historical tourism linked to World War II-era railway construction. 

Internationally, the Ministry of Tourism is strengthening ties with the Indian market. Through the Sales Mission Pune 2026, the Ministry facilitated business-to-business meetings between Indonesian providers and Indian travel agents, showcasing destinations such as Bali, Borobudur, and Labuan Bajo. This mission carries an estimated transaction potential of approximately Rp12.8 billion.

Investment efforts in the first half of 2026 yielded significant results, with realization reaching Rp1,010.6 trillion. The halal industry continues to evolve into a mainstream driver, while the Ministry of Investment works to simplify licensing and expand downstreaming into digital infrastructure and clean energy.

## Claims

- Foreign tourist arrivals in the first half of 2026 reached 7.45 million, a 5.71% increase year-on-year. (corroborated by 2 sources)
- Average spending by foreign visitors rose to US$1,313 per trip in the first half of 2026. (corroborated by 2 sources)
- Indonesia's economy grew by 5.29% year-on-year in the second quarter of 2026. (single source)
- The cumulative economic growth for the first half of 2026 reached approximately 5.45%. (single source)
- The national footwear industry grew by 11.3% year-on-year in the second quarter of 2026. (single source)
- The footwear and leather industry employed approximately 966,147 workers as of February 2026. (single source)
- Palm oil export foreign exchange reached approximately USD 39.2 billion during the pandemic. (single source)
- Domestic tourism trips reached a record high of 1.2 billion in 2025. (single source)

## Timeline

### 2026-09-10: Indonesia tourism sector shows growth through July 2026

Indonesia's tourism sector grew in early 2026, with foreign arrivals reaching 8.98 million and tourism foreign exchange hitting USD 8.43 billion in the first half of the year.

7 sources. https://clstr.news/cluster/indonesia-tourism-sector-shows-growth-through-july-2026

### 2026-09-06: Indonesia expands tourism reach through local development and Indian market missions

Indonesia is boosting tourism by developing local sites like Appalarang Tinadung and expanding international business networks through a strategic sales mission in Pune, India.

2 sources. https://clstr.news/cluster/indonesia-expands-tourism-reach-through-local-development-and-indian-market-missions

### 2026-09-04: Indonesia Ministry of Tourism maps wellness tourism potential

Indonesia's Ministry of Tourism is mapping the wellness tourism ecosystem to boost competitiveness and sustainability through integrated services and a new digital business catalog.

2 sources. https://clstr.news/cluster/indonesia-ministry-of-tourism-maps-wellness-tourism-potential

### 2026-08-31: Indonesia investment reaches Rp1,010.6 trillion in H1 2026

Indonesia's investment reached Rp1,010.6 trillion in the first half of 2026, growing 7.2% and creating 1.45 million direct jobs.

9 sources. https://clstr.news/cluster/central-java-implements-5-motor-vehicle-tax-discount

### 2026-08-28: Indonesia advances tourism through connectivity and halal certification

Indonesia focuses on tourism growth through Makassar's connectivity initiatives and efforts to expand halal certification for hotels and restaurants to support Muslim-friendly travel.

3 sources. https://clstr.news/cluster/indonesia-advances-tourism-through-connectivity-and-halal-certification

### 2026-08-28: Indonesia focuses on investment streamlining and halal industry expansion

Indonesia is focusing on improving investment through downstreaming in digital and green sectors, while the halal industry expands into lifestyle, fintech, and mainstream global tourism.

3 sources. https://clstr.news/cluster/indonesia-focuses-on-investment-streamlining-and-halal-industry-expansion

### 2026-08-26: Indonesia to develop shopping tourism to boost economic growth

Indonesia aims to boost economic growth by developing shopping tourism, seeking to redirect USD 6.7 billion in outbound travel spending back into the domestic retail market.

4 sources. https://clstr.news/cluster/indonesia-to-develop-shopping-tourism-to-boost-economic-growth

### 2026-08-24: Indonesia expands halal tourism through professional training and regional development

Indonesia is expanding its halal tourism sector through professional tour leader training, developing Bali's Masjid Pantai Jembrana as an economic hub, and scaling halal certification in 1,500 villages.

2 sources. https://clstr.news/cluster/indonesia-expands-halal-tourism-through-professional-training-and-regional-development

### 2026-08-09: Indonesia tourism sector shows growth in H1 2026

Indonesia's tourism sector saw significant growth in H1 2026, with international arrivals up 5.71% and tourism investment rising 16.64% to Rp39.68 trillion.

7 sources. https://clstr.news/cluster/indonesia-tourism-sector-shows-growth-in-h1-2026

### 2026-08-07: Indonesia economy shows resilience with 5.29% Q2 growth

Indonesia's economy grew 5.29% in Q2 2026, bolstered by a resilient tourism sector, a growing footwear industry, and the strategic importance of the palm oil sector.

8 sources. https://clstr.news/cluster/indonesias-economy-grows-53-in-h1-2026-as-tourism-fuels-momentum

### 2026-08-01: Indonesia records highest foreign tourist arrivals since 2020 in first half of 2026

Indonesia saw 7.45 million foreign tourists Jan‑Jun 2026, up 5.71 % YoY, the highest since 2020; Malaysia, Singapore and Australia were top source markets, with average spend $1,285 per visit.

4 sources. https://clstr.news/cluster/indonesia-records-highest-foreign-tourist-arrivals-since-2020-in-first-half-of-2026

### 2026-07-31: Indonesia Hotel Association Seeks Religious Tourism to Raise Yogyakarta Occupancy

Indonesia's hotel association targets religious tourists to lift Yogyakarta hotel occupancy to 70% in August, amid a broader tourism recovery effort facing a 4% visitor decline.

2 sources. https://clstr.news/cluster/indonesia-hotel-association-seeks-religious-tourism-to-raise-yogyakarta-occupancy

### 2026-07-24: Indonesia Tourism Ministry launches open‑trip sales mission to boost domestic travel

Indonesia's Tourism Ministry held a Yogyakarta sales mission to promote open‑trip packages, linking 16 sellers with 45 buyers, as domestic trips rose to 1.20 billion in 2025.

3 sources. https://clstr.news/cluster/indonesia-tourism-ministry-launches-opentrip-sales-mission-to-boost-domestic-travel

### 2026-07-16: Indonesia tourism sector sees strong domestic travel and event-driven economic boost

Indonesia’s tourism saw a 2.86 % rise in domestic trips and a 7.68 % increase in foreign arrivals Jan‑May 2026, with events generating roughly Rp858 billion in economic turnover.

3 sources. https://clstr.news/cluster/indonesia-tourism-sector-sees-strong-domestic-travel-and-event-driven-economic-boost

### 2026-07-10: Indonesia tourism ministry reports growth, Muslim‑friendly destination push

Indonesia's tourism ministry named 15 provinces for Muslim‑friendly development and reported May 2026 growth with 1.38 million foreign arrivals, a 5.8 % YoY rise and hotel occupancy at 50.8 %.

3 sources. https://clstr.news/cluster/indonesia-tourism-ministry-reports-growth-muslimfriendly-destination-push

### 2026-07-08: Indonesia launches D‑8 Halal Expo 2026 targeting $500 bn trade goal

Indonesia opened the D‑8 Halal Expo 2026 in Jakarta, aiming to boost intra‑D‑8 trade to $500 bn by 2030 and draw Islamic‑world investment, including domestic halal production such as gelatin.

3 sources. https://clstr.news/cluster/indonesia-launches-d8-halal-expo-2026-targeting-500-bn-trade-goal

### 2026-07-05: Indonesia’s Global Competitiveness Ranking Falls to 48 in 2026

Indonesia slipped to 48th in the IMD World Competitiveness Ranking 2026, down from 27 in 2024, with weaker business, government efficiency and infrastructure; the economy minister pledged an investigation.

2 sources. https://clstr.news/cluster/indonesias-global-competitiveness-ranking-falls-to-48-in-2026

### 2026-06-30: Indonesia Faces 9‑Million Digital Talent Gap as Regional Digital Competitiveness Rises

Indonesia may miss nine million digital‑skill workers, prompting youth to seek overseas internships, while the 2026 Digital Competitiveness Index shows nationwide gains, especially in non‑Java regions.

3 sources. https://clstr.news/cluster/indonesia-faces-9million-digital-talent-gap-as-regional-digital-competitiveness-rises

### 2026-06-28: Indonesia advances halal tourism at International Islamic Expo 2026

Indonesia's International Islamic Expo 2026 gathered tourism and halal industry stakeholders to boost Muslim‑friendly travel, leveraging its second‑place Global Muslim Travel Index ranking and aiming for larger

3 sources. https://clstr.news/cluster/indonesia-advances-halal-tourism-at-international-islamic-expo-2026

### 2026-06-24: Indonesia's Digital Competitiveness Index Shows 50% Growth, Jakarta Leads

Indonesia's digital competitiveness score rose to 42.2 in 2026, up 50% since 2020. Jakarta and West Java remain top, while Southwest Papua jumps 15 ranks. Gap between provinces stays large, and the report urges

2 sources. https://clstr.news/cluster/indonesias-digital-competitiveness-index-shows-50-growth-jakarta-leads

### 2026-06-20: Indonesia drops to 48th in global competitiveness ranking, climbs to 2nd in Muslim-friendly tourism index

Indonesia fell to 48th in IMD’s global competitiveness ranking but rose to 2nd in the 2026 Global Muslim Travel Index.

2 sources. https://clstr.news/cluster/indonesia-drops-to-48th-in-global-competitiveness-ranking-climbs-to-2nd-in-muslim-friendly-tourism-i

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Cite as: Indonesia Economic Trends: Tourism, Halal & Investment. CLSTR, https://clstr.news/situations/imd-world-competitiveness-rankings-2026