Indonesia’s Tourism Destination and Development Program

Indonesia’s tourism destination and tourism development program for 2015- 2019 has three strategic objectives:  Improved quality of tourism destination,tourism investment, and tourism
contribution to employment.

            The increasing quality of tourism destinations is characterized by four main  indicators: Increased number of areas that have facilitation for infrastructure and ecosystem development; Increased number of facilitation to increase cultural, natural and artificial tourism destinations; Increased amount of facilitation for improved tourism destination governance; and Increased amount of facilitation for community empowerment.

            Increased investment is characterized by the indicator of tourism investment contribution to total national investment. Meanwhile, the contribution of tourism to the absorption of labor is characterized by direct, indirect, and follow-up labor
indicators in the tourism sector. Investment in the tourism sector in 2016 was targeted at USD 1,627.36 million, but realization only reached USD 1,093.65 or 67%.

            The increase in the contribution of tourism to the absorption to the national workforce is indicated by the number of direct, indirect and follow-up labor in the tourism sector, which in 2016 was targeted to reach 11.7 million. Indicators of improving the quality of tourism destinations are the number of areas that are facilitated for infrastructure and ecosystem (provincial) development. The target is 34 regions and realization reached 100%.

            The number of facilitation to increase tourism, cultural, natural and artificial destinations is targeted at 25 locations and can be realized by 100%. The number of facilitation to improve the governance of tourism destinations is targeted at 25 locations and realized in 27 locations or by 108%. While the number of community empowerment facilitation is targeted in 34 provinces and can be realized by 100%. Investment in the tourism sector includes public investment by government (infrastructure) and investment by the private sector (amenitas). Based on the 2016 “Travel & Tourism Investment in ASEAN” report by the World Travel Tourism Council (WTTC), both government and private investments are important factors in the development in ASEAN.

 This is because investment can increase the capacity to support high demand and number of tourists; better infrastructure development and improvement of facilities; maintain and improve the functionality and quality of existing infrastructure, and can encourage new regulations and better environmental standards. Next is to increase the attraction to drive new demands and seize market share. The investment realization in Indonesia includes Foreign Investment (PMA) and Domestic Investment (PMDN), where the realization value of tourism investment in 2016 amounted to USD 1093.65 million, in the form of FDI of USD 954.59 million, and PMDN of USD 139.06 million. The largest form of PMA tourism investment in Indonesia in 2016 is hotel development (56%), management consulting service (27%), and restaurants.

The three biggest investment destinationsare: DKI Jakarta (54%), Bali (22%),and West Java (7%). While the three largest investor countries are: Singapore (51%), British Virgin Island (14%), and Luxembourg (8%). The three largest forms of PMDN tourism investment are: star hotel development (65%), tirta tourism (21%), and amusement park (4%). The three regions that are the biggest investment destinations are: West Java (29%), Bali (23%), and Yogyakarta (17%).

Source : Tabloid West Papua 002 Year I - December 15, 2017 - January 14, 2018

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