Economists say tourism and food can accelerate economic growth

Economists say tourism and food can accelerate economic growth




 Bank Mandiri Chief Economist Andry Asmoro stated that the tourism, agriculture, forestry, base metals, and food and beverage sectors need to be boosted to accelerate national economic growth.

He said in Jakarta on Thursday that although Indonesia's economic growth is stable at around 5 percent, several sectors are still growing below average and have not contributed optimally to the national Gross Domestic Product (GDP).

For example, the agricultural sector, which contributed 13.8 percent of GDP in the second quarter of 2025, only grew by around 2 percent year -on-year (yoy).

"If growth increases from 2 percent, for example, to 4 percent, it will certainly have a relatively high impact on economic growth," said Andry Asmoro.

Meanwhile, the tourism sector, which has a lower contribution, namely around 4.9 percent of GDP, is considered to have a wider multiplier effect.

He said the increase in the number of domestic and international tourist visits could encourage growth in the transportation, accommodation, restaurant and MSME sectors.

He stated that the positive trend in tourist visits in the first half of 2025 shows significant potential for strengthening the country's foreign exchange reserves.

In addition, the food and beverage (mamin) industry was recorded as contributing 6.9 percent to GDP with an average growth of 5.24 percent, an output multiplier of 1.9 and an export proportion of 16.23 percent.

Andry also assessed that this sector has significant room for continued strengthening to make an optimal contribution to national economic growth, which is targeted to reach 8 percent by 2030.

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