JAKARTA, KOMPAS – The performance of the tourism sector has not yet recovered. Although the movement of people for tourism remains healthy, the allocated spending is lower. The main issue still revolves around the low purchasing power of the community.Business actors have revealed that Indonesia's tourism performance is slightly lower in the first semester of 2026 compared to the same period last year. Several areas in Bali, such as Ubud and Sanur, still show positive performance. However, the overall condition is more sluggish."The domestic (market problem) is purchasing power, and that has a significant impact. Almost evenly across the domestic market, the market has declined," said Hariyadi Sukamdani, Chairman of the Indonesian Hotel and Restaurant Association (PHRI), in Jakarta on Tuesday (June 23, 2026).Even though the government provides various incentives to stimulate public purchasing power, these measures are only short-term. Moreover, the incentives offered are limited in quantity."However, the impact of using it as a major driver is indeed limited. Looking at Java, the volume (of movement) is still increasing, but spending is small. The traffic is mostly school children, and from Java to Bali, it's good because of the good connectivity," Hariyadi said.One reflection of this is seen in hotel room expenditures. Hariyadi estimates that hotel room spending has decreased by approximately 5 percent for the current conditions compared to the same period last year.The budget allocation for transportation incentives during school holidays, for example, is Rp 190.5 billion. Other assistance is also being prepared, including a 100 percent government-borne Value Added Tax (PPN DTP) for scheduled domestic economy class airfare. The budget reaches Rp 472.7 billion (Kompas.id, June 22, 2026).Increase in non-subsidized fuel pricesIn addition to the issue of purchasing power, pressure also arises from the increase in the price of non-subsidized fuel starting in April 2026. As a result, the prices of raw materials have also risen and have been felt since May. Hotels are adjusting to the price increase of dishes ranging from 5-12 percent in their restaurants.Nevertheless, Hariyadi continued, the positive signals of a peace agreement between the United States and Iran provide hope for an improvement in tourism performance in the second semester of 2026. Promotions with various parties, including airlines, are also ongoing."At the very least, if fuel prices decrease, logistics costs will also decrease. Certainly, prices will drop, adjusting because, after all, the market always seeks a new equilibrium. The market cannot sustain high prices," said Hariyadi.The movement of tourists in the Asian region is driven by a sudden planning model, rather than planning well in advance. Travel durations are shorter. This method contrasts with the approach of tourists from Western countries, who tend to plan their trips long in advance and have longer stays.However, this approach by Asian tourists has proven to be a saving grace for the tourism sector during times of geopolitical tensions that disrupt global travel flows.The Board of Airline Representatives in Indonesia (Barindo), which oversees several foreign airlines operating in Indonesia, made a similar statement. Barindo Chairman Farshal Hambali stated that inbound travel to Indonesia from abroad has been relatively good in the first half of 2026."We've seen on the ground that movement in the Asia Pacific region is still good. However, if we're talking about long-haul travel to Europe and the Americas, the impact is quite significant, but within the Asia Pacific region, tourist and business movement remains healthy," said Farshal.In the aviation industry, the hardest hit are low-cost carriers. Other airlines have experienced capacity reductions, but only by around 3 percent, not more than 5 percent.Although the geopolitical conditions show signs of improvement with global oil prices beginning to decline, Farshal continued, the prices of airline tickets have not immediately followed suit. This is because the price of aviation fuel has not decreased."We hope this will go down by July 1st. Every July 1st, PT Pertamina Patra Niaga releases a table (of aviation fuel prices). However, the adjustment to ticket prices isn't immediate. What this means is that if fuel prices do go down, there will definitely be a corresponding decrease in ticket prices," said Farshal.Both Hariyadi and Farshal stated that the government needs to create a conducive business climate and regulations. So far, entrepreneurs feel burdened by various regulations that are not supportive, such as rampant illegal levies when organizing public events in open spaces.Other business actors, such as the Association of Travel Agencies (Asita), also continue to monitor geopolitical dynamics. Conditions in several Middle Eastern countries, which have long served as hubs between the East and West, also influence national tourism performance."If the hubs are opened, it's somewhat safer. For example, travelers are still flying from their countries of origin to the Middle East and then to Indonesia. Right now, they're being diverted temporarily. We're pursuing the Asian market," said Asita Secretary General Budi Ardiansjah.The government should be able to address this by restoring visas and offering a simplification of the visa process to several other countries. However, the selected countries must be those that have already undergone a review process for their foreign nationals.Travelers expected to enter Indonesia are those who can behave appropriately, not those who pose a risk of causing problems.Several countries deemed eligible for this are Japan and several European nations. So far, Budi continued, the emerging markets have been contributed by India and China.The government also needs to pay attention to issues that have long tarnished the image of Indonesian tourism on the international stage. For instance, environmental issues, including mining activities that damage the Raja Ampat region in Southwest Papua. This issue was quite prominent some time ago, but it has not yet been fully resolved to this day.The issue of infrastructure and connectivity is a concern to ensure that development can be more equitable and accommodate the travel of tourists. This way, transportation can facilitate travelers in exploring various places, especially developing regions.