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MUSIC concerts are more than just parties; they are engines of tourism and MICE, generating ripple effects across hotels, transportation, retail, and event support services.
A recent study by LPEM-FEB UI (Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia), entitled “Competing for Global Entertainment Events: The Economic Impact of Coldplay and Taylor Swift Concerts in Indonesia and Singapore,” shows that Indonesia lags far behind Singapore in converting audience numbers into economic value per person.
This comparison appears in LPEM-FEB UI working paper number 091, published in March 2026, which examines the economic impact of Coldplay concerts in Indonesia and Singapore, as well as Taylor Swift’s concert in Singapore, using an input-output approach.
The findings are clear: Indonesia leads in audience size, but Singapore is more efficient at monetizing each filled seat through strong integration between events, tourism, and international mobility.
A Coldplay concert at Gelora Bung Karno Stadium in Jakarta in November 2023 was attended by approximately 78,500 people. The concert is estimated to generate a direct economic stimulus of approximately US$30.10 million and a total economic output of US$53.34 million, with added value of US$26.94 million, household income of US$9.50 million, and the creation of 4,498 jobs. These figures are substantial, but the impact is still dominated by ticket sales and spending by domestic audiences, rather than spending by out-of-town or international tourists.
In Singapore, the six-day Coldplay concert generated a direct stimulus of approximately US$189.17 million and an economic output of US$308.99 million. More importantly, output per audience member reached approximately US$1,030, significantly higher than Jakarta’s approximately US$680 per person, due to the larger share of international tourists, longer stays, and significantly higher spending on transportation and accommodation.
Taylor Swift even reinforced Singapore’s image as a premium event destination. The six-concert “Eras Tour” there generated a direct stimulus of approximately US$267.15 million, economic output of US$434.73 million, added value of US$235.73 million, and household income of US$186.54 million, with output per attendee of approximately US$1,449 per day.
For the tourism sector, this demonstrates that a major concert can only have maximum impact if packaged as a travel package, rather than a stand-alone event. In Singapore, the largest expenditures actually came from international airfare, hotels, food, and local transportation, resulting in an event that turned into a tourism shock that spread to many sub-sectors.
Lessons for Indonesia
The study shows that Indonesia actually has a large market capital. Coldplay’s concert in Jakarta demonstrated the power of scale, as a single one-day event generated economic output nearly equivalent to Coldplay’s one-day performance in Singapore: approximately US$53.34 million in Jakarta versus US$51.50 million in Singapore.
The problem is, Indonesia has not optimally translated this high level of interest into deeper added value. Researchers highlighted barriers such as fragmented ticketing systems, scalping, licensing fees, and limited infrastructure that allow economic effects to leak out before reaching the local ecosystem.
For the MICE sector, this means Indonesia has the opportunity to become not only a concert host but also a competitive regional event hub. However, to achieve this, an event must be supported by smooth transportation, ready hotels, clear regulations, and destination promotion integrated with the event calendar.
Impact on Hotels and Transportation
The data in the study also shows that the accommodation, air transportation, local transportation, and food service sectors are the main winners when large-scale events attract out-of-town and international audiences. In the case of Taylor Swift in Singapore, air transportation contributed more than US$103 million in direct stimulus, while accommodation contributed nearly US$43 million.
This means that the more out-of-town or international audiences come, the greater the multiplier effect on the tourism sector. This transforms concerts from mere cultural consumption into a destination promotion tool that benefits hotels, airlines, restaurants, shopping centers, and even the government.
In Jakarta, there are indeed knock-on effects, including on accommodation and inter-regional transportation, but they are still limited because the majority of attendees are domestic. As a result, large concerts generate more of a temporary surge than a sustained and integrated increase in tourist spending.
Policy Direction
This research strongly suggests that Indonesia needs to shift from a “come, perform, finish” approach to an event ecosystem approach. The government, promoters, airlines, hotels, and local economic actors need to be connected in a single strategy so that international concerts generate longer stays and higher tourist spending.
For local and central governments, the task is not simply to manage stage permits and crowd security. More important is ensuring events are included in the tourism agenda, facilitating mobility, strengthening international access, and preparing cities so that spectators not only come to watch but also spend money.
In other words, Indonesia does not lack spectators. What remains is the ability to translate that enthusiasm into revenue, jobs, and greater added value for the local economy. [Venuemagz.com/photo special]
