Indonesia’s Tourism Overemphasis on Bali Leaves Other Islands Underserved
Indonesia’s heavy reliance on Bali as the centerpiece of its tourism strategy is causing overlooked potential in other parts of the vast archipelago, according to recent observations by industry experts and local stakeholders. While Bali grapples with overcrowding and environmental challenges, picturesque yet remote destinations such as Ora Beach, Lake Toba, and Raja Ampat continue to struggle with underdevelopment, infrastructure deficiencies, and limited connectivity.
The Draw and Dilemma of Bali
Bali, Indonesia’s most internationally renowned destination, has historically been a magnet for tourists worldwide. The island’s cultural charm, natural beauty, and spiritual heritage have made it a unique location, elevated further by popular media exposure such as the 2010 film "Eat, Pray, Love." In 2024, Bali accounted for nearly half of Indonesia’s 13.9 million foreign visitors.
However, this popularity has led to overtourism. Visitors face traffic congestion, noise pollution, and environmental degradation, including mounting plastic waste and water shortages. The influx has also impacted local communities, with construction threatening sacred sites and natural resources becoming strained. Despite government ambitions to diversify Bali into a hub for family offices, seaweed exports, and medical tourism, economic returns have shown signs of decline. Bali’s growth rate slowed to 5.5% in 2024, accompanied by a drop in international tourist spending—especially after Chinese visitors fell to one-third of their 2019 numbers.
Untapped Beauty Beyond Bali
In contrast, destinations like Ora Beach on Seram Island offer tranquil, pristine environments reminiscent of the Maldives but without the crowds. Yet, insufficient transport infrastructure hampers visitor access. Reaching Ora Beach involves a lengthy journey: a flight to Ambon, a ferry to Seram Island, and then a road trip, complicated further by limited ferry services.
Similarly, Lake Toba—the world’s largest volcanic lake—and Raja Ampat, with the richest coral reef biodiversity globally, remain largely inaccessible to international tourists due to the absence of direct flights and limited facilities. Although some investments, such as the airport expansion in Labuan Bajo near Komodo Island, have boosted regional tourism, these remain isolated successes rather than a comprehensive development of Indonesia’s diverse tourism assets.
Challenges and Missed Opportunities
Experts point to fragmented coordination among government ministries and local authorities as a major impediment to developing these new tourism hubs. Past initiatives aiming to establish “10 new Balis” across the country have stalled. Without clearer strategic investment, better transportation links, and integrated policymaking, Indonesia risks missing out on vast economic gains and falling behind regional competitors.
Countries like Thailand and Vietnam offer diversified tourism portfolios, with multiple well-connected destinations ranging from beaches to cultural sites. Vietnam’s ongoing infrastructure projects, such as the airport expansion in Phu Quoc in preparation for APEC 2027, exemplify a broad-based approach to tourism development that Indonesia has yet to emulate.
Looking Forward: A Call for Strategic Diversification
Industry voices advocate for Indonesia to adopt a more federated tourism model that empowers provincial authorities and promotes distinct destinations under a national umbrella. The country’s breathtaking natural and cultural variety provides a strong foundation, but realizing its full potential requires political resolve, improved multi-level collaboration, and a shift in mindset towards sustainable, diversified tourism.
Without these changes, Indonesia’s overreliance on Bali could lead to environmental degradation and economic stagnation, while opportunities in its other spectacular islands remain undeveloped and underappreciated.
In sum, Indonesia stands at a crossroads: continue betting heavily on Bali with diminishing returns and environmental costs, or strategically invest to create a vibrant network of tourism experiences that showcase the country’s rich archipelagic heritage and boost its competitive edge in Southeast Asia’s dynamic travel market.
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