What changed
2026-08-01 05:32 UTC → 2026-08-03 07:44 UTC ·
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In June 2026 Indonesia slipped eight places to 48th Indonesia’s position in the IMD overall competitiveness ranking, prompting a probe by World Competitiveness Ranking fell to 48th in June 2026, an eight‑place drop from 2025. The decline was recorded across economic performance, government efficiency, business efficiency and infrastructure, leaving the Coordinating Minister of country behind regional peers such as the Economy. Philippines, Vietnam, Thailand, Malaysia and Singapore. At the same time the nation rose to second on time, the Global Muslim Travel Index. Index named Indonesia the second‑most Muslim‑friendly destination, up from fifth in 2025, reflecting expanded halal certification, new Muslim‑friendly sites and improved services. The Halal International Islamic Expo Indonesia (HEI) (IIE) 2026 opened was held in Jakarta from 8‑12 July under D‑8 chairmanship, with Deputy Foreign Minister Anis Matta targeting US$500 billion intra‑D‑8 halal trade by 2030 26‑28 June, gathering tourism officials, umrah‑hajj agents, investors and Finance Minister Purbaya Sadewa promoting domestic halal production, including local gelatin. foreign delegations. Organisers expect the event to deepen partnerships and generate significant business for hotels, restaurants, transport and MSMEs, building on the 2025 edition’s Rp105 billion (US$6 million) of transactions. Tourism activity continued to accelerate. The Ministry of Tourism earmarked 15 provinces for Muslim‑friendly tourism, launching Tourism’s open‑trip sales mission in Yogyakarta and targeted festivals such as the in Aceh Ramadan Festival and the online portal Muslim Friendly Travel. Foreign arrivals reached other provinces contributed to 6.07 million foreign arrivals in the first five months (up 7.68 % YoY) and domestic trips totaled 523.22 523 million (Jan‑May), a 2.86 % rise, domestic trips, with May alone up 8.69 %. The sector posted a surplus of 2.37 million trips and generated turnover of roughly Rp858 billion in turnover. In late July the ministry piloted an “open‑trip” sales mission in Yogyakarta, offering flexible, affordable packages to schools, universities, community groups and corporations. Minister Widiyanti Putri Wardhana reported billion. A World Bank‑Geekhunter report highlighted a tabletop forum with 16 tourism sellers and 45 prospective buyers, aiming looming digital‑talent gap of up to deepen networks and boost transactions; Statistics Indonesia notes 1.20 billion domestic trips in 2025 and 106.16 nine million in May 2026. Meanwhile the Indonesia Hotel Association in Yogyakarta is promoting religious tourism to lift low‑season hotel occupancy from 30‑45 % toward 70 % by targeting corporate and faith‑based groups. workers. The sector still faces East Ventures‑Katadata Digital Competitiveness Index showed Indonesia’s median score rise to 42.2, a 4 50 % decline versus pre‑COVID levels, increase since 2020, with 1.38 Jakarta leading and 37 of 38 provinces improving. Programs such as AIESEC’s Global Talent aim to upskill graduates. Foreign visitor numbers reached a new post‑pandemic high: 7.45 million foreign arrivals by May between January and June 2026, driven mainly by visitors from Yemen a 5.71 % rise YoY. Malaysia, Singapore and Russia. Australia were the top source markets. Average spend per visitor was US$1,285, with accommodation accounting for 37 % of total expenditure.