As tourists flock to the bustling streets of Bali, pristine destinations like Ora Beach on Seram Island remain virtually untouched, underscoring Indonesia’s ongoing struggle to balance tourism development across its archipelago of over 17,000 islands.

While Bali continues to receive the lion’s share of government investment, concerns are growing that Indonesia is overlooking its broader tourism potential. Bali, now grappling with overtourism, faces mounting issues such as traffic congestion, environmental degradation, and a decline in cultural authenticity. Despite this, the government is banking heavily on the island—launching initiatives such as the Sanur Special Economic Zone for medical tourism and plans to turn Bali into a family office and seaweed export hub.

Yet, this focus has not translated into long-term economic gains. Bali’s economic growth slowed to 5.5% in 2024 from 5.7% the previous year, with international tourist spending on the decline. Notably, Chinese tourist arrivals remain just a third of 2019 levels.

Meanwhile, other destinations with untapped potential, such as Seram Island’s Ora Beach, Lake Toba, and Raja Ampat, remain underdeveloped due to poor infrastructure and limited accessibility. “An airport could transform tourism here,” said Irfan Muddin, operator of Ora Sunrise View Resort, who has long advocated for better connectivity in Maluku.

Despite previous pledges to create “10 new Balis,” many of these projects have stalled. Experts attribute this to poor inter-agency coordination and lack of political will. “There’s a gap between Indonesia’s natural potential and its policy execution,” said Dr Samer El Hajjar of NUS Business School.

Some efforts, like the expansion of Labuan Bajo’s airport and the addition of international routes, have shown promise. But regional competitors such as Thailand and Vietnam are already surging ahead with more diversified offerings and superior connectivity.

Analysts warn that without a more federated tourism strategy that empowers regional destinations, Indonesia risks losing out in a competitive travel market. “The country needs a mindset shift—one that treats Indonesia as a constellation of world-class experiences,” said Dr El Hajjar.

As global travellers increasingly seek unique, less-crowded alternatives, the window for Indonesia to capitalise on its diversity may be narrowing. The question now: Will Bali’s overburdened success continue to overshadow the nation’s overlooked gems?