Indonesia’s digital landscape is moving fast, and travel is at the very heart of this evolution. As a sneak peek into our new Indonesia Explored report, part of our Online Travel Tracker series, we’re diving into how local Online Travel Agencies (OTAs) are not just defending their home turf but are now eyeing regional dominance.
The numbers tell a compelling story.
Indonesia’s digital economy was valued at $99 billion USD in 2025 (per Google e-Conomy SEA) and is on a trajectory to hit between $180-340 billion USD by 2030. Within that, online travel is a major engine, expected to nearly double from $9 billion USD in 2025 to $17 billion USD by 2030.
Travel by the numbers
According to Phocuswright’s Southeast Asia Travel Market Essentials 2025, the shift toward digital is undeniable:
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Market Scale: Gross travel bookings in Indonesia reached $16.5 billion USD in 2025, with a forecast to hit $18 billion USD by 2028.
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The Online Pivot: Online bookings currently stand at $10.6 billion USD, while offline bookings are expected to shrink from $5.9 billion today to $4.9 billion by 2028.
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Regional Heavyweight: Indonesia accounts for 27% of total gross travel bookings in the core Southeast Asian market (Thailand, Singapore, Malaysia, and Indonesia).
AI is the new travel companion
It’s not just about where people are booking, but how. Indonesia is leading the region in AI momentum. Data from the Google e-conomy SEA report shows Indonesia has the strongest commercial momentum for AI applications in the region, with a 127% revenue growth in apps featuring marketed AI tools.
Why the sudden surge? Travellers want speed and personalization:
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51% of Indonesians use AI to save time on research and comparisons.
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35% use it for personalized recommendations.
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84% of respondents in YouGov’s 2025 report found AI-powered vacation recommendations actually helpful.
Local giants vs. global players
While international names like Booking.com and Expedia remain popular for inbound long-haul travelers, the domestic scene is firmly in the hands of home-grown heroes.
Traveloka remains the leader, with its “deep localization” strategy and massive automation—90% of flight changes are now handled via self-service. Meanwhile, Tiket.com is looking beyond borders, targeting expansion into Laos and Cambodia by late 2025.
What’s next?
From the rise of “super-apps” like the potential Grab-GoTo merger (which could control 91% of the ride-hailing market) to the Tourism Ministry’s new AI assistant, MAiA, the landscape is being rewritten as we speak.
This is just one chapter of our comprehensive guide to Indonesia’s shifting digital tides. Download the full report here.
