Spotlight on Indonesia - Edition 2

It has been three months since your last update. What recent changes are impacting life in Indonesia now? 

Indonesia is rapidly expanding vaccination rates across the country, currently vaccinating over one million people per day. This has dramatically reduced the spread of the virus with COVID positive test results dropping from 33.4 per cent to 4.57 per cent. Currently 15 per cent of the population of 40 million people are fully vaccinated. The Government is aiming to increase vaccination levels to 2.5 million doses daily to achieve the target of 80 per cent fully vaccinated by the end of 2021.

Indonesia is operating under restrictions ranging from level 1 to 4 across the country. Currently Java and Bali are under level 3 restrictions, meaning vaccinated individuals are allowed to access public facilities (malls, restaurants, outdoor recreation parks) by registering on the government tracing applications. Non-essential businesses must operate 100 per cent work from home. As of this week, schools have begun face to face learning two to three days per week with strict health protocols.

While there are still restrictions on social gatherings, fully vaccinated individuals are able to travel, attend social gatherings and return to work especially in Jakarta and Surabaya.

Inbound and outbound travel is permitted for fully vaccinated individuals with negative COVID-19 test certificates valid two days before their departure date. 

What is the general sentiment within the Indonesia market tourism industry?

Positive consumer sentiment has returned in line with vaccination rates and the reduction in positive cases detected (50,000+ daily at the peak, down to less than 5,000 per day currently).

Our trade partners remain eager for Australian borders to reopen as a key and profitable destination to support their businesses. Their support of the Aussie Specialist Program and their attendance at the Australian Tourism Exchange, with 30 buyers attending online, demonstrates the focus and excitement for Australia has grown during the pandemic.

What are Tourism Australia’s plans for the year ahead?

We have constantly been building demand to support a rapid recovery. Our ‘always on’ marketing activity and distribution development programs have been critical to enhancing the appeal of Australia in the market. The recent Consumer Demand Project Research identified 34 per cent latent demand (people who had not previously considered Australia, who are now considering in the next two years following viewing of our marketing materials).

To convert this demand, we are proactively working and investing in our airline, Key Distribution Partner agents and the broader Aussie Specialist network of consultants. Aligning the training and marketing efforts to the new experiences promoted to engage with consumers ensures we have a strong network of qualified agents to convert this high level of pent-up demand generated.

And finally, please share your top three reasons why you believe the Australian industry should stay in touch with the Indonesia market this year?

Indonesia is a rapidly growing opportunity for the Australian tourism industry. By 2030, just eight years away, Indonesia will be the seventh largest economy in the world with a middle class of 52 million people right next door to Australia.

Australia is currently slightly behind Japan as the most considered or intended destination for our target audience. With high pent-up demand and Australia’s perception as a COVID safe destination, we are expecting a strong recovery. We will convert this high demand, improving spend, arrivals and dispersal by targeting holiday and business events travellers

The Aussie Specialist agents play an important role in consumer decision making in the market. We believe post pandemic the consumers reliance upon them will only increase. As such, the continuous support from Australian industry partners to maintain and build new relationships is critical and an opportunity for new product to enter the market.