toggle menu

Public Information

Berita

LPEI News

08 Nov 2018

Hosting International Events: The Impact on Indonesia's Economy

The biggest sports event in Asia – Asian Games and Asian Para Games 2018, have successfully held in Indonesia a few months ago. Many countries praise the event, even since the opening ceremony. Beside considered capable of being such a great host to international events, this success also has a big impact on Indonesia’s economy.

Other than the sport events, Indonesia is also chosen to host other International events such as IMF-WBG Annual Meetings which recently held in Bali. The existence of various international events in Indonesia certainly has an influence on the Indonesian economy, which comes from various sectors, including:

  • Infrastructure

As a host, Indonesia always tries to give their best to serve every guest of the International event. One of the ways to provide a good service is by continuing the infrastructure construction that had been postponed. With the adequate infrastructure, the guests can be more comfortable. The development of the infrastructure also profitable in the country. Supposing the construction of new roads and repair of damaged roads can help in reducing congestion and can be a useful asset even after the event is completed.

  • Tourism

Holding an International event means welcoming a lot of guests from overseas. The foreign guests take this chance not only to attend the event but also to do a tour at once. In this opportunity, Indonesia can show the world how beautiful and safe the country is. According to Bappenas, the number of tourists coming to Jakarta and Palembang has increased to reach 1.7 million domestic tourists and 78,854 foreign tourists. In other words, the International event can be a promotion tool for Indonesia’s tourism too.

  • Business

Every International event will certainly affect certain business fields, such as hospitality, culinary, souvenir sales, and construction (to support the infrastructure development). On the other side, the presence of International events also increased the number of jobs and the productivity of the nation. In the 2018 Asian Para Games event recently, for instance, Bappenas noted an increase in employment reaching 108,780 with an increase in real wages of 0.03%.

Other than sectors that are mentioned above, International events also bring advantage to micro, small and medium business enterprises (MSMEs). Some International events allow MSMEs to join and enliven the event by selling their merchandise. This opportunity will eventually make their products widely known, not only in the domestic area but also worldwide.

The positive impact on the Indonesian economy is most visible from the 2018 Asian Games event. Based on the data from Bappenas, the economic growth increased approximately by 0.05% of the total GDP Value. Although the percentage seems small, this increase is significant in improving Indonesia’s economy in 2018.

In the end, these positive impacts can encourage Indonesia to continue striving for better and remain trusted to host various international events.