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The coronavirus disease 2019 (COVID-19) pandemic caused a major shake-up in the global tourism industry, causing people from all over the world to self-isolate and avoid travel. Indonesia is one of the largest archipelago countries in the world, consisting of five major islands and thousands of small islands, making it a prime global tourism destination. However, due to the pandemic, the tourism industry in the country has been deeply affected, and many of the tourism businesses in Indonesia have had to shut down. This article discusses the COVID-19 impact on tourism in Indonesia through a systematic review of research articles from the ScienceDirect database for 2019–2022. This study aims to explore the pandemic’s impact on various tourism industries throughout Indonesia and the recovery strategy of the affected areas. Accordingly, this study reviewed the literature on this issue, focusing on the post-recovery strategy for the tourism industry and the impact of COVID-19 on various branches of the tourism industry, such as the hotel, geoparks, and halal industries. Connecting the gap between policies and demographic characteristics is a crucial strategy for tourism recovery that can lay a foundation for future studies in similar fields.