Tourism has long been considered an important sector in Indonesia. Not only it has a significant contribution to the economy, the sector also has substantial impacts on the social, cultural, and environmental aspects of the nation. Just like in other emerging countries, sustainability is not an easy concept to implement, especially in the tourism industry. The trade-offs between short-term benefits (e.g., employment, revenue, contribution to GDP, economic growth, etc.) and long-term interests (e.g., environmental sustainability, protection of cultural heritage, etc.) are one of the most challenging issues faced by all relevant tourism stakeholders. This chapter aims to examine the emergence, development, and challenges of sustainable tourism thought and practices in Indonesia. It provides a brief reflection of what had been achieved up to a pre-COVID 19 period, followed by a description of how the pandemic has adversely disrupted the industry. The chapter also proposes several important potential directions and challenges for the future of tourism sustainability in the ‘new normal’ Indonesia.