Indonesia’s event industry is experiencing significant losses following government-imposed budget cuts, with 638 events cancelled or postponed, according to a national survey by the Indonesian Event Industry Council (IVENDO).
The survey, conducted between January and February 2025, estimates losses at around US$27 million, with most cancellations affecting key business cities like Jakarta, Bali, Yogyakarta, and the province of West Java.
Government ministries and agencies were behind most cancellations, with 51 per cent affecting meetings, followed by incentive events at 13 per cent, and training sessions at 11 per cent.
Mulkan Kamaludin, chairman of IVENDO aired concerns that if budget cuts persist, the industry would see a sharp decline. This is a contrast to last year’s strong performance, when 8,777 events were held nationwide, generating US$5.4 billion and supporting 8.8 million jobs.
“Events were gaining momentum, but these cuts risk undoing that progress,” he said.
As one of Indonesia’s top business event destinations, Bali has been hit even harder.
Initial findings from IVENDO’s national survey in early 2025 revealed that only five per cent of events in Bali had been postponed, with most clients opting to scale down rather than cancel.
However, a follow-up survey by IVENDO Bali Chapter in March 2025 showed a grimmer picture. Organisers reported an average of five to 10 event cancellations each, affecting around 750 events in just three months. Estimated losses have surged to US$49 million, with more than 85 per cent of event workers suffering a drastic drop in income.
Grace Jeanie, head of IVENDO Bali, stated: “The situation is becoming increasingly difficult. Many event workers and businesses are struggling to survive.”
Industry players in Bali are growing increasingly pessimistic, with 57 per cent of respondents believing the sector will deteriorate further. If the trend continues, losses could reach US$200 million by the end of the year.
With the industry at a crossroads, stakeholders are calling for urgent action to mitigate further economic fallout.
“If budget cuts are necessary, scaling down events is a better alternative to total restriction. The trickle-down effects go beyond event organisers,” Grace said.
She urged the government to reconsider its approach, advocating for policies that ease event permit restrictions, provide low-interest loans, and offer tax relief to struggling businesses.
“These measures would help businesses stay afloat and protect the livelihoods of millions who depend on the event industry,” she added.
Harry Nugraha, CEO of Ego Global Asia, urged businesses to “rethink how we do things”. This includes diversifying income streams and pivoting towards the corporate market by focusing on smaller, high-impact corporate events that bring steady revenue with lower risk.
He opined that hybrid events, AR/VR experiences, and fresh, engaging programming could help attract businesses that are still spending, but with tighter budgets.
