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You are here: Home / cat / Sustainable Travel as a Key Driver for Indonesia’s Small Business Sector

Sustainable Travel as a Key Driver for Indonesia’s Small Business Sector

Dated: December 8, 2025

The Ministry of Tourism of Indonesia, in collaboration with the International Labour Organization (ILO), convened the Policy Forum on Green Tourism MSMEs in Jakarta on 5 December 2025 to accelerate the country’s shift toward sustainable tourism. Minister Widiyanti Putri Wardhana emphasized that this transition is essential for the future of Indonesia’s tourism sector, particularly for micro, small, and medium enterprises (MSMEs), which form the backbone of the national economy by creating jobs, supporting local livelihoods, and preserving cultural heritage. The move reflects a broader transformation from attraction-based tourism toward a value-driven, sustainability-focused approach.

This green transition aligns with Indonesia’s 2025–2029 National Mid-Term Development Plan (RPJM), which prioritizes effective destination management, inclusive supply chains, adoption of Blue, Green and Circular Economy (BGCE) principles, green infrastructure development, workforce capacity building, and environmentally responsible financing. By adopting eco-friendly practices, MSMEs can grow sustainably while generating community benefits such as decent employment, protection of natural heritage, and strengthening Indonesia’s leadership in responsible tourism.

ILO Country Director for Indonesia and Timor-Leste, Simrin Singh, highlighted that the partnership between the ILO and the Indonesian government goes beyond promoting sustainable practices. It seeks to enhance the resilience, inclusiveness, and competitiveness of the tourism sector, while contributing to biodiversity conservation, cultural preservation, and climate mitigation. Since 2023, the collaboration under the Partnership for Action on Green Economy (PAGE) programme has focused on building MSMEs’ capacities through training, innovation, and cross-sector partnerships.

The initiative has included a Green Jobs Forum, Training of Trainers (ToT) programmes, and direct training for MSMEs. It has produced 19 certified trainers and developed a comprehensive training module covering entrepreneurship, financial literacy, and green tourism. Initial pilot projects in Central Java, Yogyakarta, North Sumatra, and West Nusa Tenggara directly benefited 172 tourism MSMEs, laying the groundwork for nationwide expansion.

Building on this collaboration, the programme has now reached 30 cities and regencies across Indonesia, including Yogyakarta, Central Java, West Java, North Sulawesi, West Papua, Riau, Lampung, North Maluku, West Nusa Tenggara, South Kalimantan, and Bangka Belitung. To date, over 900 tourism MSMEs have benefited from training, capacity-building, and adoption of sustainable practices, strengthening the foundation for a greener, more resilient, and inclusive tourism sector in Indonesia.

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