What happened
Indonesia ranks 23rd worldwide in the World Economic Forum's Travel and Tourism Development Index (TTDI), published in September 2026. Its score went up from 4.46 two years ago to 4.56.
Tourism Minister Widiyanti Putri Wardhana presented the result at the ministry's monthly briefing on 9 October 2026. Indonesia sits sixth in Asia-Pacific and second in Southeast Asia, with only Singapore ahead in the region.
The TTDI compares countries across dozens of measures, from infrastructure and prices to safety and natural assets. Wardhana tied the improvement to the government's first two years in office under President Prabowo Subianto and his deputy, Gibran Rakabuming Raka.
Where Indonesia scores well and where it lags
Indonesia came first in the world on the pillar measuring how much a government prioritises tourism, scoring 6.12. It placed fifth on price competitiveness, ninth on natural resources and 15th on cultural resources and socio-economic impact.
The minister also listed weak spots flagged by the index. Indonesia still trails on the quality of tourist services and infrastructure, on hygiene and health, and on how digitally ready the sector is. Openness to travellers and security round out the list.
Investment still clusters in Bali
Realised tourism investment climbed 56.05%, from Rp 47.14 trillion in 2024 to Rp 73.56 trillion in 2025. Wardhana said the money is still concentrated in Bali and Jakarta and goes mostly into amenities such as accommodation.
The ministry now wants a wider spread. It is steering investors towards 13 priority and regenerative destinations and tourism special economic zones, and towards attractions rather than only hotels.
A push into marine tourism
Foreign capital for yachting and marinas is a central target. On a business trip to Monaco in September 2026, the minister pitched Indonesia's marina potential to more than 160 international organisations.
She pointed to Indonesia's place in the Coral Triangle and its more than 700 dive sites, naming Raja Ampat and Labuan Bajo as flagship destinations.
The delegation also held a closed session on crew certification, maritime tourism master plans, destination promotion and matching investors with local partners. The minister said this potential should turn into investment, jobs, better destinations and income for coastal communities.
Hotels are fuller
Occupancy at star-rated hotels reached 52.52% in August 2026, which is 2.01 points above the level of August 2025. Deputy Tourism Minister Ni Luh Puspa said average occupancy for January to August was 49.56%, a rise of 2.30 points, with gains across one to five star properties.
She also noted that 47 Indonesian hotels and resorts received MICHELIN Keys in 2026, compared with 33 a year earlier. That puts Indonesia second in Southeast Asia, after Thailand.
What it means for Bali
The key point for Bali is that national tourism investment keeps landing on the island. That adds supply and sharpens competition among places to stay. At the same time, the government openly wants to redirect capital to other regions, including Labuan Bajo and marine destinations.
Nationwide occupancy of around 50% means roughly half of hotel rooms sit empty on an average night. The briefing gave no separate figures for Bali.
For villa owners, the message is to look at local numbers. Rising national occupancy and more hotel awards support Indonesia's image as a higher end destination, but supply and demand in a specific part of Bali still decide the outcome.