Following the start of a new government and a renewed focus on tourism, Indonesia is set to scrap visa requirements for its five largest markets next year.
Indonesia will officially waive visa requirements for nationals of Australia, China, Japan, South Korea and Russia starting in January 2015.
Coordinating Maritime Affairs Minister Indroyono Soesilo said the removal of visa requirements in these markets could add up to an additional 450,000 visitors a year.
"By waiving visa requirements for these countries, it is estimated that US$11.3 million per year is lost, as we currently charge $35 per tourist for visas," Indroyono said.
"However, with an average spending of $1,200 per tourist, we will gain around $540 million in additional foreign exchange per year by providing visa facilitation," he added.
The move is a unilateral one but tourism minister Arief Yahya hopes Indonesia will receive reciprocal benefits.
Arief said research shows that countries which implement visa-free policies get up to 25% more visitors.
"With the visa exemptions the ministry is optimistic about recording 10 million foreign arrivals next year and 20 million foreign arrivals in 2019," he said.
Currently Indonesia only offers visa-free entry to 15 countries -Peru, Chile, Hong Kong, Morocco, Ecuador, Macau and 9 ASEAN member nations.
Arief also gave a hint that Indonesia may grant visa-free access to Indonesia for travelers who transit through Thailand, Singapore or Malaysia.
