New Delhi, July 25, 2024 (GLOBE NEWSWIRE) -- Indonesia MICE market was valued at US$ 2,319.7 million in 2023 and is projected to reach US$ 7413.6 million by 2032 at a CAGR of 13.78% during the forecast period 2024–2032.
The Meetings, Incentives, Conferences, and Exhibitions (MICE) sector in Indonesia is poised for significant growth, driven by a robust economy, strategic geographic location, and a surge in corporate activities. In 2023, Jakarta hosted 1,200 international events, while Bali saw an influx of 900 corporate gatherings, marking it as a pivotal destination for global business events. The Indonesian government has also been proactive, investing $150 million in infrastructure to bolster the MICE industry. The new Yogyakarta International Airport, with a capacity of 20 million passengers annually, is expected to ease travel for business delegates. Additionally, the opening of 50 new hotels in key cities like Jakarta, Surabaya, and Bandung is set to cater to the increasing demand for quality accommodations.
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Indonesia's diverse cultural landscape and world-class facilities are significant draws for international MICE organizers. In 2023, the country’s MICE market attracted 250,000 international MICE delegates, contributing $2.35 billion to the economy. The Indonesian Convention Exhibition (ICE) in BSD City, with its 220,000 square meters of space, hosted 500 events, showcasing its capacity to handle large-scale gatherings. Meanwhile, Bali's Nusa Dua Convention Center accommodated 300 high-profile events, reflecting the island's appeal as a premium MICE destination. The rise in business travel has also been supported by 15,000 new direct flights to Indonesia, enhancing connectivity and ease of access for international participants.
Looking ahead, the demand for MICE market in Indonesia is expected to surge, with projections indicating 1,500 international events in Jakarta and 1,200 in Bali by 2025. The government's plan to develop 10 new tourism destinations, including Labuan Bajo and Mandalika, is anticipated to diversify the industry further. With over 1,000 new convention centers and meeting spaces under construction, Indonesia is well-equipped to accommodate the growing influx of business events. The introduction of 5G technology across major cities is set to enhance digital connectivity, making Indonesia a top choice for tech-savvy MICE organizers. As the country continues to improve its infrastructure and services, the MICE sector is expected to contribute an additional $5 billion to the economy by 2025, solidifying Indonesia's position as a leading MICE destination in Asia.
Key Findings in Indonesia MICE Market
| Market Forecast (2032) | US$ 7,413.6 Million |
| CAGR | 13.78% |
| By Type | Meeting (32.3%) |
| By Event | Political and State Events (19.4%) |
| By Destination | Domestic (94.3%) |
| By Channel | Offline (85.4%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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More than 32.3% Revenue of Indonesia's MICE Market Comes from Meetings
The meeting segment of the MICE (Meetings, Incentives, Conferences, and Exhibitions) market in Indonesia generates higher revenue compared to conventions, incentives, and exhibitions. Wherein, meetings are more frequent and regular events, often held by corporations, government bodies, and non-profit organizations for strategic planning, training, and stakeholder engagement. This regularity ensures a steady stream of revenue. Additionally, meetings often require extensive logistical support, including accommodation, transportation, and catering, which further boosts revenue. The demand for meetings is driven by Indonesia's growing economy and its strategic position as a business hub in Southeast Asia, attracting multinational corporations to hold regional meetings in the country. In 2023, Indonesia hosted approximately 1,200 international meetings, with Jakarta and Bali being the primary locations for these events. The average meeting in Indonesia lasts about 4 days and involves 150 participants, generating significant demand for local services.
Moreover, the infrastructure in Indonesia MICE market, particularly in cities like Jakarta and Bali, is well-developed to support large-scale meetings. The availability of state-of-the-art convention centers, hotels with conference facilities, and advanced technological support systems makes Indonesia an attractive destination for meetings. The government's active promotion of business tourism and investment in MICE infrastructure also plays a significant role. For instance, the Jakarta Convention Center and Bali Nusa Dua Convention Center are prime examples of venues that cater specifically to the needs of the meeting segment. These venues collectively hosted over 800 events in 2023, contributing to the sector's growth. The presence of these facilities enables Indonesia to host high-profile meetings, thereby generating substantial revenue. The meeting segment alone contributed approximately $1.2 billion to Indonesia's economy in 2023. Additionally, the average spending per meeting attendee is estimated to be around $2,500, encompassing accommodation, dining, transport, and shopping.
- Favorable Government Policies Adds Fuel to MICE Market Growth in Indonesia
The government's supportive policies, such as visa facilitation for business travelers and tax incentives for MICE organizers, further enhance the attractiveness of Indonesia as a meeting destination. For example, the introduction of the e-visa system in 2023 has streamlined entry for over 50,000 business travelers. The robust growth in sectors like IT, pharmaceuticals, and finance also drives the demand for meetings, as these industries frequently organize events to discuss innovations, regulatory changes, and market strategies. The IT sector alone organized 300 major meetings in 2023.
Political and State Events are the Major Revenue Puller in Indonesia's MICE Market, Generates over 19.4% Revenue
Political and state events are the most prominent type of events in Indonesia's Meetings, Incentives, Conferences, and Exhibitions (MICE) market due to several compelling factors. Firstly, Indonesia's strategic geopolitical position and its growing influence in regional and international politics make it an attractive hub for diplomatic and political gatherings. Events such as the 15th Summit of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the 18th Asia Media Summit (AMS) 2023 in Bali highlight Indonesia's role in fostering international relations and showcasing its cultural heritage. These events not only shape the political landscape but also boost the reputation of local venues as significant MICE destinations. Additionally, the stability and cultural richness of Indonesia provide a conducive environment for hosting high-profile political events, further driving demand in this sector.
The demand for political and state events in Indonesia's MICE market is also supported by robust economic indicators and infrastructural developments. For instance, Indonesia's economy is projected to grow steadily, with consumer spending and manufacturing activity on the rise. This economic growth enhances the country's ability to host large-scale events. Furthermore, the Indonesian government has been proactive in improving the business climate and investing in infrastructure, which is crucial for the success of MICE events. The country's export performance, with a notable $23.5 billion in export value in March 2023, underscores its economic vitality. Additionally, the digital transformation of micro, small, and medium enterprises (MSMEs) and the expansion of the e-commerce market, expected to grow from US$ 52.93 billion in 2023 to US$ 86.81 billion by 2028, reflect a dynamic and evolving business environment. These factors collectively contribute to the high demand for political and state events in Indonesia's MICE market.
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Despite Rapid Digitalization, Offline Channels Stays Major Revenue Generator, Accounts for 85.4% Market Share
The MICE industry in Indonesia prominently relies on offline channels due to cultural, technological, and economic factors. Indonesian business culture highly values personal relationships and face-to-face interactions, crucial for establishing trust. This cultural inclination makes offline channels more effective for MICE activities, where personal interaction is key. Despite the rapid growth of internet access, significant technological barriers like inconsistent connectivity and limited access to advanced digital tools in certain regions make offline channels more reliable and practical. Economic structure also plays a role, with many SMEs lacking the resources to leverage online platforms effectively. Offline channels in the Indonesia’s MICE market, requiring less technological investment, are more accessible for these businesses. Additionally, consumer behavior in Indonesia shows a strong preference for tangible experiences and in-person interactions, reflected in high attendance rates at physical MICE events.
Government and institutional support further reinforce the dominance of offline channels. The Indonesian government and industry associations have historically provided more resources for offline MICE activities, including funding for physical infrastructure like convention centers. Recent statistics highlight this trend: Indonesia has over 170 million internet users, yet many still face connectivity challenges. Mobile app and in-app purchase spending reached $757.3 million in 2024, yet this digital growth does not translate to the MICE sector. The country has 127 million social media users, showing significant online engagement, but this does not extend to MICE. Indonesia hosts over 100 international conferences annually, with Jakarta and Bali being top destinations. The country has over 100,000 SMEs participating in MICE events.
Major convention centers in the MICE market like Jakarta Convention Center and Bali Nusa Dua Convention Center host thousands of events each year. The government has invested in building over 10 new convention centers in the past decade. Indonesia's tourism sector, closely linked to MICE, generated over $15 billion in revenue last year. The number of domestic travelers attending MICE events is over 50 million annually. The country has 40 million active WhatsApp users, yet this does not substitute for in-person meetings. The Indonesian hotel industry, which supports MICE, has over 17,000 establishments. These factors collectively create an environment where offline interactions are not just preferred but are more effective and feasible for conducting MICE activities.
Indonesia MICE Market Key Players
- PT TRUEVINDO RAHARDJA UTAMA
- Essence of Bali DMC
- Future Mediatrix Group
- GLOBAL EVENT MANAGEMENT (GEM)
- SEQARA Communications
- SHIFTinc
- Venuerific Indonesia
- Werkudara Group
- Other Prominent Players
Key Segmentation:
By Type
- Meeting
- Conventions
- Incentives
- Exhibition
By Event Type
- Cultural festivals
- traditional ceremonies
- art performances
- Political and State
- Business and Trade
- Sport Competition
- Private Events
- Recreational
- Education & Scientific
By Destination
- Domestic
- International
By Channel
- Virtual
- Offline (Personal)
- Hybrid
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