Indonesia is positioning large-scale international music events as a strategic driver for tourism and hospitality business growth, with the Ministry of Tourism (Kemenpar) projecting that BTS's scheduled concerts in Jakarta at the end of 2026 could generate approximately Rp126 billion in foreign exchange while attracting around 18,000 international visitors.
According to information published by Kementerian Pariwisata (Kemenpar) or Indonesia Ministry of Tourism, international concerts have evolved beyond entertainment into an economic instrument capable of attracting foreign tourists, stimulating visitor spending, and creating business opportunities across multiple sectors connected to tourism. The approach places music tourism within Indonesia's broader tourism development strategy, emphasizing collaboration between government and industry to maximize economic impact.
The concerts are scheduled to take place in Jakarta on December 26, 27, and 29, 2026, when South Korean group BTS is expected to perform as part of its World Tour Arirang 2026. Kemenpar identified the event as a significant opportunity because BTS has one of the world's largest international fan communities, known as ARMY, whose members have demonstrated a strong willingness to travel across borders for live performances.
The ministry projects that approximately 18,000 international tourists will travel directly to Indonesia to attend the concerts. Based on simulations conducted jointly by Kemenpar and iMe Entertainment, the event could contribute around Rp126 billion in foreign exchange earnings, providing an additional source of tourism revenue amid pressure on the Indonesian rupiah.
The projection reflects a broader strategy to position music tourism as part of Indonesia's tourism economy rather than treating concerts as standalone entertainment events. Kemenpar noted that the measure of success extends beyond ticket sales or attendance figures to include visitor length of stay and spending throughout their trips.
Indonesia believes it holds several competitive advantages that support the development of music tourism. Kemenpar highlighted the country's large domestic population with increasing purchasing power for entertainment, its strategic geographical location within Southeast Asia, and its diverse tourism offerings, including 10 Priority Tourism Destinations (DPP) and three Regenerative Tourism Destinations (DPR).
These factors create opportunities for tourism businesses to capture demand generated by international events through accommodation, transportation, dining, attractions, and other travel-related services.
The ministry also pointed to the continued expansion of Indonesia's live music industry. Based on Asosiasi Promotor Musik Indonesia (APMI) 2024 data cited by Kemenpar, live music revenue reached USD157 million in 2024, representing a fivefold increase compared with 2020.
Venue occupancy averaged 80%, while the live music segment accounted for approximately 40% of total revenue within Indonesia's entertainment events industry.
The growth of the live music sector has created economic activity that extends well beyond concert venues. Kemenpar identified a multiplier effect across aviation, hotels, restaurants, micro, small and medium-sized enterprises (MSMEs), merchandise businesses, creative industries, logistics providers, event services, and employment.
For hospitality businesses, the projected increase in visitor arrivals creates demand across accommodation and food and beverage operations. Airlines and transportation providers also benefit from increased passenger traffic, while event organizers, logistics companies, and local suppliers become part of the broader value chain supporting large-scale international concerts.
The ministry also referenced findings from a study conducted by LPEM FEB UI on Coldplay's concert in Jakarta on November 15, 2023, as an illustration of the economic contribution generated by a major international performance.
According to the study, the event generated approximately Rp843 billion in economic output, contributed around Rp435 billion to Indonesia's gross domestic product (GDP), and produced approximately Rp151 billion in additional worker income.
The figures demonstrate how a single international concert can generate spending across multiple industries through tourism-related consumption, business activity, and employment.
Building on those outcomes, Kemenpar is seeking to increase the economic contribution generated by future international concerts through an integrated tourism strategy rather than relying solely on ticket purchases.
Central to this strategy is the proposed "Indonesia Music Package," which combines concert tickets with hotel accommodation, flights, culinary experiences, and city tours.
The bundling concept is designed to encourage international visitors to extend their stay in Indonesia, increasing tourism expenditure across hospitality, transportation, attractions, and related services.
Instead of focusing only on attendance numbers, the strategy aims to improve length of stay, which Kemenpar identified as a key indicator of tourism value creation. Longer visitor stays allow tourism businesses to benefit from additional accommodation nights, restaurant visits, transportation services, shopping activity, and participation in local tourism experiences.
The initiative also creates opportunities for partnerships between concert promoters, hotels, airlines, travel operators, destination management companies, and local tourism providers.
To support the development of Indonesia's music tourism sector, Kemenpar outlined several strategic priorities that require collaboration between government institutions and industry stakeholders.
These include strengthening Indonesia's competitiveness in international event bidding, increasing infrastructure capacity and the number of venues that meet global standards, simplifying licensing processes across ministries and government agencies, and supporting accountable governance through strategic coordination, including optimizing the role of Danantara and state-owned enterprises.
The ministry's strategy positions major international concerts as part of a wider tourism development framework that links entertainment events with destination marketing and tourism services.
For hospitality businesses, the approach expands opportunities to package accommodation and travel products alongside international concerts, while airlines, restaurants, tour operators, logistics providers, and creative businesses can participate in a broader tourism ecosystem surrounding major events.
With BTS scheduled to perform in Jakarta at the end of 2026, Kemenpar's projections highlight the potential for music tourism to generate international visitor arrivals, foreign exchange earnings, and business activity across Indonesia's tourism supply chain through coordinated public and private sector collaboration.