Members of the Indonesian House of Representatives (DPR) have criticized expensive airline ticket prices, which are currently hindering the movement of foreign tourists.

Thursday, 4 June 2026 | 14:55

Author: Arif S

Illustration of cheap flight tickets.
Source: Freepik

Summary

1. Putra Nababan, member of Commission VII of the Republic of Indonesia House of Representatives, highlighted that expensive domestic flight ticket prices are regarded as a barrier for international tourist mobility within the country.

2. This high ticket price situation causes tourism-related economic activity to remain concentrated mostly in major cities, with profits primarily captured by international hotel chains and shopping centres.

3. Putra also criticized that despite the tourism sector recording total investment worth Rp 25.34 trillion, this capital injection has still not driven a significant increase in local employment absorption.

The soaring price of domestic Airline Tickets has once again come under scrutiny in efforts to drive growth of Indonesia's national tourism sector. Putra Nababan, member of the Indonesian House of Representatives Commission VII, stated that due to prohibitive flight costs, International Tourists are reluctant to Travel to remote regions, opting instead to spend their time only in major cities.

This situation directly impacts the distribution of economic benefits from the tourism sector. When tourists only operate within urban centers, cash circulation becomes concentrated among international hotel chains, modern shopping malls, and large corporate Business operators.

As a result, local communities in areas with Tourism Potential fail to receive optimal benefits from Tourist Visits. This occurs despite tourism long being positioned as a driver for local economies and intended to open business opportunities for small community operators.

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"Ordinary people are forced to become mere onlookers while large corporations accumulate capital," he stated.

Putra noted that on one hand, tourism sector investment has recorded significant growth, reaching a total value of IDR 25.34 trillion or a 76.67 percent increase.

Yet on the other hand, this investment growth has still not been able to drive significant formal employment growth.

"This proves that our current tourism investment model is capital-intensive and concentrated entirely in the hands of large corporations," he added.

He assessed that current tourism development remains overly reliant on large-scale investment. Meanwhile small operators such as homestay managers, local community food stalls, and micro-enterprises in tourist zones have not received balanced and fair benefits.

Beyond the issue of domestic airfare prices, Putra also highlighted Indonesia's tourism dependence on long-haul international flight markets. According to him, this reliance leaves the national tourism industry highly vulnerable to various global disruptions.

When geopolitical crises disrupted air traffic across the Middle East region, the impact was immediately felt by Indonesia's tourism sector. A total of 1,444 Flights Were Cancelled, with an estimated potential loss of 160,052 international tourist arrivals.

According to Putra, shifting tourist target markets to neighbouring regional countries only acts as a temporary solution, and does not address the actual root of the problem.

Meanwhile, the 13.14 percent growth recorded in the accommodation and culinary sector is also judged to not fully reflect equitable economic distribution. This growth has mostly been enjoyed by formal sector businesses that receive various government facilities and incentives.

Informal sector operators such as local community food stalls and self-managed independent homestays are instead facing mounting pressure from continuously rising food and energy prices.

Concerns over expensive domestic air fares have gained further relevance following recent tariff increases across multiple popular flight routes.

This situation presents a distinct challenge for efforts to achieve equitable national tourism development. Without more affordable air transport access, tourists will continue to remain concentrated only in established mainstream destinations.

Quick Answer

Indonesian Parliament Criticizes High Domestic Airfares Blocking Equitable Tourism Growth

High domestic airline ticket prices in Indonesia prevent international tourists from travelling outside major cities, concentrating tourism benefits only with large corporate operators. Despite IDR 25.34 trillion in tourism investment, local communities have not received fair gains or meaningful employment growth.

Expensive domestic airfares stop international tourists from visiting remote Indonesian regions
Tourism economic benefits remain concentrated with international corporate operators in major cities
IDR 25.34 trillion tourism investment has not driven significant local employment growth
Small local tourism operators are excluded from fair economic gains in the growing sector

High domestic airline ticket prices are acting as a major barrier to fair, distributed tourism growth in Indonesia, according to official criticism from members of the Indonesian House of Representatives. Putra Nababan, sitting on the legislature's Commission VII, confirmed that prohibitive flight costs mean international tourists almost never travel to remote regional destinations, remaining exclusively in major urban centres instead.

Uneven distribution of tourism economic benefits

This concentration of tourist activity directly skews where money flows within the sector. When visitors do not leave major cities, almost all tourism spending circulates only between international hotel chains, modern shopping malls and large corporate operators.

Local communities living in areas with proven tourism potential receive almost none of this economic value. Small local operators including homestay hosts, neighbourhood food stalls and micro tourism businesses are effectively locked out of the growing market, while large corporations accumulate the majority of revenue.

Investment growth not translating to local gains

Official figures show the Indonesian tourism sector has recorded total investment of IDR 25.34 trillion, representing a 76.67 percent increase. Despite this very large capital injection, there has been no corresponding significant growth in formal local employment.

This mismatch confirms that the current tourism development model is heavily capital-intensive, structured to benefit large corporate entities rather than distribute opportunity across local populations.

Additional vulnerabilities also exist, including over-reliance on long-haul international flight routes. Recent geopolitical disruptions in the Middle East resulted in 1,444 cancelled flights and an estimated loss of over 160,000 international tourist arrivals.

Even recorded growth in the accommodation and culinary sectors does not reflect broad prosperity. Almost all of this growth has been captured by formal businesses eligible for government incentives, while informal local operators face mounting pressure from rising food and energy costs.

Without policy changes to bring down domestic airfares and open access to regional destinations, tourism growth will continue to remain concentrated in established mainstream locations, with local communities remaining as bystanders to the sector's expansion.

FAQ

Why are Indonesian parliament members criticizing domestic airline ticket prices?

High airfares prevent international tourists from travelling outside major cities, blocking equitable economic distribution from tourism across all regions of Indonesia.

How much total investment has been recorded in Indonesia's tourism sector?

Indonesia's tourism sector has recorded total investment valued at IDR 25.34 trillion, representing a 76.67 percent growth rate.

Who currently captures most tourism economic benefits in Indonesia?

Nearly all tourism economic gains are captured by international hotel chains, large shopping centres and formal corporate business operators.

What issue exists with tourism employment outcomes in Indonesia?

Despite large recorded investment growth, the tourism sector has not delivered significant formal local employment increases for regional communities.