REPUBLIKA.CO.ID, JAKARTA -- The tourism sector still has the potential to help Indonesia reduce its current account deficit, World Bank chief economist for Indonesia Ndiame Diop said.

"Indonesia has large tourism potential which can help overcome the current account deficit," he said here on Thursday (12/12).

Ndiame said the tourism sector could contribute foreign exchange earning in large amount to the service balance so that the current account will no longer depend on foreign investors' portfolios which are susceptible to sudden reversal or oil and gas imports.

More than 8.8 million international tourists travel to Indonesia every year and contribute US$9.3 million in foreign exchange earning to the country's coffers, he said.

The figure is relatively small compared with that of other countries from the tourism sector, he said.

As a matter of fact, 25.7 million tourists visit Malaysia every year and spend US$21 million, he said.

Meanwhile, the number of foreign tourists visiting Thailand is 26.5 million every year, contributing US$42 million to the country's foreign exchange earnings, he said.

"The amount shows that the potential of the Indonesian tourism can contribute 1 percent to the gross domestic product. Therefore, we need not worry about tapering off or other global economic volatility," he said.

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