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

November 21, 2025

Former president Joko "Jokowi" Widodo is struggling to maintain his political clout in Indonesia. The prolonged controversy surrounding his academic certificate has eroded his credibility, while his clan, once expected to carry on his political legacy, has sought every path to establish meaningful influence. Instead, many of Jokowi's close allies have become entangled in legal troubles, and his sway within President Prabowo Subianto's administration is steadily fading.

The Jakarta Police recently scheduled questioning for three suspects, Roy Suryo, Rismon Hasiholan Sianipar and Tifauziah Tyassuma, in the defamation case related to allegations of Jokowi's forged diploma. In total, eight individuals have been charged under accusations of defamation, incitement and slander.

Mahfud MD, Jokowi's former Coordinating Political, Legal and Security Affairs Minister, stated that the court should not convict Roy and company before first determining the authenticity of Jokowi's diploma.

Meanwhile, Jokowi's eldest son, Vice President Gibran Rakabuming Raka, once seen as his political heir, has seen his role diminish. His influence within the cabinet has been explicitly curtailed by President Prabowo, who prefers instead to rely on figures from his Great Indonesia Movement (Gerindra) Party and the Indonesian Military (TNI).

Similarly, the Indonesian Solidarity Party (PSI), led by Jokowi's youngest son, Kaesang Pangarep, has yet to clarify Jokowi's formal role despite rumors that he would chair its advisory board. The relationship between PSI and Jokowi has shown little sign of mutual benefit, particularly since the party holds no seats in the House of Representatives.

Jokowi's son-in-law, North Sumatra Governor Bobby Nasution, also faces legal troubles. He has been linked to a corruption case involving his close ally, Topan Obaja Putra Ginting, the head of the province's Public Works and Housing Agency.

The case drew further attention after the house of Judge Khamozaro Waruwu, who presides over the corruption trial, caught fire on Nov. 4, destroying crucial documents and valuables.

From the debris, Tempo reportedly found remnants resembling court documents and a business card belonging to a retired official from the Public Works Ministry and an expert witness at the National Public Procurement Agency (LKPP), identified by the initials RH.

Topan was arrested by the Corruption Eradication Commission (KPK) in Medan on June 28 for allegedly receiving a promised fee of Rp 8 billion (US$478,271) from a private contractor that won a Rp 231.8 billion road construction project in North Sumatra.

The KPK is awaiting the outcome of the Medan Corruption Court's trial before summoning Bobby for questioning. Prosecutors will submit their report to the KPK once the verdicts against the five defendants in the case become legally binding.

This is not the only legal issue shadowing Bobby. He was previously implicated in an alleged nickel smuggling scheme to China involving 5.3 million tonnes of ore, which reportedly caused state losses amounting to hundreds of trillions of rupiah. Coordinating Economic Minister Airlangga Hartarto was also named in the same case.

In 2024, Bobby's name surfaced in connection with a bribery and gratuity case connected to former North Maluku governor Abdul Gani Kasuba, who died in March of this year.

Jokowi's weakening influence extends beyond his family. ProJo, the volunteer organization that once stood as his strongest political support base, is now at a crossroads.

After speculation that it might evolve into a political party, ProJo chairman Budi Arie Setiadi, who served as Cooperative Minister in the Prabowo government for less than 11 months, has seen his political standing wane. His attempt to join Gerindra was rejected by several regional party branches, including the Surakarta chapter, a key base of Jokowi's support.

They argued that Budi Arie was merely seeking political protection from an online gambling scandal during his tenure at the Communication and Informatics Ministry in the final year of Jokowi's presidency.

Local Gerindra representatives also objected, fearing his entry could disrupt the party's established structure. Some political observers claim that Budi Arie's move was orchestrated by Jokowi himself.

Following Budi Arie's dismissal in September, several figures closely associated with Jokowi's administration were gradually dropped from Prabowo's government lineup, including Sri Mulyani, Dito Ariotedjo and Budi Gunawan.

Luhut Binsar Pandjaitan, once Jokowi's most trusted aide with extensive authority, has been relegated to a largely ceremonial role at the powerless National Economic Council.

The remnants of Jokowi's influence now lie mainly in the police and military leadership, whose terms will extend until their eventual retirement.

Meanwhile, many of Jokowi's flagship initiatives that were expected to be continued under President Prabowo have either been scaled back or left uncertain. The Nusantara Capital City project has seen significant budget cuts and unclear timelines, while the Jakarta–Bandung high-speed rail project faces potential legal issues and is increasingly viewed as a financial burden on the state.

A year after stepping down, Jokowi finds it difficult to remain relevant as his political legacies are being dismantled by legal issues or political competition.

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