Sector
Tourism
Indonesia has designated tourism as a primary sector with a strong commitment to integrated infrastructure development and the enhancement of skilled and quality human resources. In 2023, the realization of investment in the tourism sector was predominantly driven by domestic investment (PMDN), reaching Rp 14.9 trillion. The PMDN funds were allocated to various types of businesses, including Rp 8.228 billion for star-rated hotels in West Nusa Tenggara, Rp2.601 billion for tourism areas in DKI Jakarta, and Rp1.656 billion for restaurants in Bali.
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Tourism
Indonesia has designated tourism as a primary sector with a strong commitment to integrated infrastructure development and the enhancement of skilled and quality human resources. In 2023, the realization of investment in the tourism sector was predominantly driven by domestic investment (PMDN), reaching Rp 14.9 trillion. The PMDN funds were allocated to various types of businesses, including Rp 8.228 billion for star-rated hotels in West Nusa Tenggara, Rp2.601 billion for tourism areas in DKI Jakarta, and Rp1.656 billion for restaurants in Bali.
Indonesia has identified 10 priority tourism destinations, including Borobudur, Mandalika, Labuan Bajo, Bromo Tengger Semeru, Thousand Islands, Lake Toba, Wakatobi, Tanjung Lesung, Morotai, and Tanjung Kelayang. Both domestic and international tourists constitute the country’s tourism market potential. In 2023, the number of foreign tourist visits reached 11.68 million, with the largest contributions coming from Malaysia, Australia, Singapore, China, and East Timor. This increase in visits also corresponds with the growth of tourism foreign exchange earnings, which reached US$6.08 billion in the first semester of 2023.
Major provinces attracting international tourists include Bali, DKI Jakarta, Riau Islands, West Nusa Tenggara, and East Java. Meanwhile, the number of domestic tourist trips in 2023 reached 749,114,709 trips, with DKI Jakarta, DI Yogyakarta, and East Java having the highest travel ratios.
Aside from the tourism sector, Indonesia’s creative economy sector has also shown significant growth, with exports reaching US$11.82 billion in the first half of 2023. The fashion subsector is the main contributor with US$6.56 billion (55.52 percent), followed by culinary products with US$4.46 billion (37.70 percent), and crafts with US$792.67 million (6.71 percent).
Moreover, the sector has realized US$225.28 million in foreign direct investment (FDI) and US$577.87 million in domestic direct investment (DDI) in the first quarter of 2023 out of the sector’s total target investment of US$2.68 billion in 2022. The Tourism and Creative Economy Ministry targets investment in this sector to reach US$6-8 billion, with the hope of creating 4.4 million new jobs in 2024. This investment fund is planned to be allocated for the development of five-star hotel accommodations in super-priority tourism destination areas (DPSP) and 10 other priority tourism destinations.
Meanwhile, realized investments in the tourism sector in 2022 amounted to US$2.33 billion. Furthermore, FDI also contributes significantly, especially reaching Rp8.7 trillion from Singapore amounting to Rp2.458 billion, followed by Hong Kong with Rp1.720 billion, and India with Rp1.385 billion.
Latest News
Once considered a symbol of Indonesia's future, Nadiem Makarim has experienced a dramatic fall from grace.
The Attorney General’s Office (AGO) recently alleged he presided over losses amounting to Rp 1.8 trillion (US$110 million) during his tenure as education, culture, research, and technology minister from 2019 to 2024.
The 41-year-old Ivy League graduate comes from a prominent family. His father, Nono Anwar Makarim, is a renowned anti-corruption lawyer, while his maternal grandfather had been an independence fighter. The indictment has severely damaged the family's reputation.
Before his political career, Nadiem rose to prominence as the founder of the Gojek application, Indonesia's first "unicorn" start-up and a major innovation of the 2010s. He leveraged the digital revolution to transform local motorcycle services into an integrated mobile platform for ride-hailing and food delivery.
When he left his role as Gojek CEO in 2019 to join former president Joko “Jokowi” Widodo's cabinet, he brought his digitalization-focused mindset to reform the education sector, despite having no prior experience. His digitalization-focused mindset is ironically now at the heart of the allegations.
Nadiem is one of several former ministers from the previous administration currently facing corruption allegations. The Corruption Eradication Commission (KPK) said on Wednesday it was targeting the “top leadership” of the Religious Affairs Ministry in its investigations into alleged corruption over the haj pilgrimage 2023–2024 quota.
The illegal flow of money from the sale and purchase of quotas is suspected to have benefited various intermediaries, including officials at the highest level.
The KPK had apparently been referring to former religious affairs minister Yaqut Cholil Qoumas. As part of the investigation, Yaqut has been barred from leaving the country.
The AGO has accused Nadiem of abusing his authority by mass-procuring Google Chromebook laptops without a proper tender process.
The AGO cited a feasibility study by his predecessor, Muhadjir Effendy, which concluded that the Chromebook laptops would be ineffective in remote and rural areas without reliable internet access.
Nadiem and his legal team have denied the allegations, saying he received no money from the program and that 97 percent of the Chromebooks were successfully delivered. He also claimed none of the 1.2 million laptops were sent to remote or rural areas lacking internet access.
Nadiem's attorney, Hotman Paris Hutapea, appealed to President Prabowo Subianto to intervene on Nadiem’s behalf.
However, this offer was rejected by the Presidential Communications Office head, Hasan Nasbi, who said the President would allow law enforcement to conduct their work.
Meanwhile, Nadiem has more issues to worry about. The KPK has launched a separate investigation into the education ministry’s exclusive use of Google Cloud services during the COVID-19 pandemic.
At the time of Nadiem's ministerial appointment, Google provided a US$100 million investment in Gojek, fueling suspicions of a conflict of interest.
Furthermore, the AGO found an August 2019 group chat, showing discussions with his future staff for a digitalization program centered on Chromebook laptops, which had already been deliberated before Nadiem became minister.
While Nadiem’s aspiration for a digitalization program had been wise, his haste and failure to follow proper tender processes have led to growing suspicion of a conflict of interest.
With law enforcement agencies now pursuing Nadiem, it is unclear whether Prabowo will use his prerogative to exonerate him. Prabowo has previously exonerated former trade minister Thomas “Tom” Lembong and Indonesian Democratic Party of Struggle (PDI-P) secretary-general Hasto Kristiyanto.
While those two cases had political undertones due to their rivalry with Jokowi, Nadiem has avoided public disputes with the former president.
This has led to speculation that his case may just be an example of greed.
