Rosdiana Sijabat[1]


This paper examines the macro environment of the Indonesian tourism sector using methods and frameworks based on PEST analysis (Political, Economic, Social, and Technological). The results of this analysis offers insights of the current state of the tourism sector in Indonesia. From political factors, findings demonstrate that various policies have been carried out by the Indonesian government in encouraging the growth of the tourism sector. For example, by setting rules on the ease of investment in the tourism sector, and the ease of obtaining entry permits through visa exemptions for foreign tourists for several countries. The role of the tourism sector in the economy can be seen from the increasing contribution of the tourism sector to Indonesia's GDP and also employment. While from the social aspect it was found that the shift in domestic consumption patterns from goods based consumption to leisure based consumption also led to increased consumption in the tourism sector. Technological developments complement the advancement of the tourism sector because the existence of technology facilitates and accelerates transactions in the tourism sector in Indonesia.

Keywords: Tourism, PEST Analysis, Macro Environment Factors.

[1] Rosdiana Sijabat, PhD is a senior lecturer and researcher at the Department of Business Administration,  Faculty of Business Administration and Communication Sciences, Atma Jaya Catholic University of Indonesia. Contact email address: rosdiana.sijabat at

Cite this article:
Sijabat Rosdiana. MACRO-ENVIRONMENT ANALYSIS OF THE TOURISM INDUSTRY IN INDONESIA: FINDINGS FROM THE PEST ANALYSIS. Innovative Issues and Approaches in Social Sciences, vol.12, no.3:96-118, DOI:

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