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.

View more

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

September 15, 2026

The death of Bambang Setiawan, a 60-year-old mirror seller from Pejompongan in Central Jakarta, should have been a straightforward homicide case. He left his house at 10 p.m. to switch off the lights in his shop 500 meters away, during unrest following the Aug. 27 demonstrations near the Senayan Legislative Complex in Central Jakarta. He was found unconscious, removed by police and pronounced dead at Mintohardjo Hospital. Ten days later, the case has become a mirror for everything wrong with how Indonesia polices protest.

The Jakarta Police investigation is curiously hollow. Police say they are analyzing amateur social media videos, have questioned 14 witnesses, and released facial sketches of two men aged 30–40. Yet for a death in a dense urban area, under heavy police deployment, on a night when hundreds were arrested, there is still no named perpetrator, no timeline, no forensic anchor.

The family, traumatized by the body's condition, refused an autopsy. Police accepted the refusal, understandable on humanitarian grounds, but it left the state without the one piece of evidence that could establish cause of death.

The investigation now rests entirely on chaotic witness testimony and videos police themselves admit are partly AI-manipulated. As of Sept. 2, 49 people remain suspects, but charged with damaging public property and assaulting other victims, not with Bambang's death. Many arrested, none accountable for the death that matters.

Into that vacuum enters the Jakarta chapter of the United Indonesian People’s Movement (GRIB). Secretary-general Zulfikar confirmed GRIB members were present that night as civilian security volunteers assisting police (Pam Swakarsa) insisting: "It was not GRIB that beat him. It was the protesters."

That defense creates a bigger problem. If GRIB was there as Pam Swakarsa, who requested it? Police deny any formal request, no operational order, no written request, no coordination record. But GRIB's own narrative depends on being invited. Either GRIB self-mobilized into a security operation illegally, or it was invited by someone who now denies it. Either way, the state has outsourced its monopoly on violence.

Using militias to help police manage protests is an open secret in Jakarta. 

From the late New Order onward, militias like Pemuda Pancasila, the FBR and now GRIB have served as counter-demonstrators and intimidators, uniformed police beating students looks bad on camera; civilian thugs beating civilians looks like a "clash between community groups."

Advocacy monitors have documented mobs in white headbands arriving by truck on Aug. 27 carrying wooden weapons, with concrete bricks "prepared beforehand." This was logistics, not spontaneous anger.

Pam Swakarsa originated in 1998 as military-armed civilian militias, never having been given a solid legal footing since. Neither the 2002 Police Law nor the 2025 Indonesian Military (TNI) Law authorizes civil organizations to perform crowd control, that remains a police function requiring trained, accountable personnel.

As Amnesty Indonesia's executive director Usman Hamid warned, involving mass organizations risks letting crowds usurp police authority under the guise of "assisting." If GRIB was deployed as Pam Swakarsa without legal basis, every act of violence it committed or allowed implicates the officials who permitted it.

GRIB does not move for free. Mobilizing members, transportation and equipment takes money and command. If police deny making the request, did the TNI, or someone in the political elite? GRIB has expanded rapidly believing itself a "gatekeeper” to President Prabowo Subianto’s regime, an organization that close to power does not need a written order; a nod suffices.

GRIB's founder, Hercules (Rosario de Marçal), credits Prabowo with saving his life during his Kopassus years. GRIB was founded in 2011 with an explicit mission of bringing Prabowo to power, mobilizing 25,000 members for his 2024 inauguration.

Prabowo's 2022 resignation from GRIB's advisory board was legal insulation, not a political divorce. Hercules and GRIB's lawyer affirmed after the unrest they would "continue to guard Prabowo." GRIB is not formally part of the state; it is more useful, a plausibly deniable instrument.

This is why suspicion flourishes. Indonesia has seen this script before: peaceful protests followed by unidentified groups causing chaos, diverting public anger from the original grievance toward "anarchy", and justifying crackdowns.

Bambang's death may not be a bug in that strategy but a feature, except this time the victim was a beloved local resident, not a demonstrator, and the strategy could not hide its fingerprints.

Police arrested 387 people yet cannot name the killers of the one death everyone witnessed. They deny using GRIB, while the group itself admits deployment as Pam Swakarsa. Until the police answer who called up GRIB that night, and under what authority, the investigation will read not as an investigation, but as a cover-up.

Read more
Load more