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 moreTourism
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.
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Indonesia's largest Muslim organization, Nahdlatul Ulama (NU), is facing another severe rift among its leadership after chairman Yahya Cholil Staquf was dismissed by the organization's supreme council, the Syuriah. Although his close associations with pro-Israel figures have been publicly cited as the cause, the underlying motive behind the firing appears to stem from intense political rivalry among NU elites.
According to the minutes of the Syuriah meeting held on Nov. 20 in Jakarta, 37 of the 53 board members requested that Yahya resign from his position. The meeting notes stated that if he failed to step down within three days, the body would move to sack him altogether. This decision effectively shifts NU's leadership to Miftachul Akhyar.
The Syuriah is NU’s advisory and supreme council composed of senior scholars and led by the rais aam (supreme leader), a position currently held by Miftachul. Yahya, meanwhile, chairs the Tanfidziyah, the executive body responsible for NU's core programs and day-to-day operations.
The primary grounds cited for Yahya's dismissal include suspected violations of financial governance protocols and, most notably, his engagement with figures allegedly affiliated with international Zionist networks.
Yahya has long been known as an Indonesian Muslim figure with ties to Israel. He famously accompanied several figures to a meeting with Israeli President Isaac Herzog, a move he defended as part of reconciliation efforts even as the Israeli government showed no indication of halting its attacks on Palestine.
Earlier this year, Yahya invited Peter Berkowitz, an intellectual known for supporting Israel's occupation of Palestinian territories under the pretext of self-defense, to an NU leadership program. Leveraging his position as a member of the Board of Trustees, Yahya also recommended that the University of Indonesia invite Berkowitz to speak on campus.
Following backlash, Yahya admitted he had failed to conduct adequate background checks before inviting a pro-Israel figure to Indonesia. His opponents in the Syuriah have used these missteps as the catalyst for his removal.
Yahya argues that the letter declaring his dismissal is invalid, claiming that the Syuriah meeting lacks the authority to remove him unilaterally. In response to the circulating meeting minutes, Yahya convened around 60 NU scholars to gather support.
Said Asrori, a Syuriah member, asserted after the gathering that the ulema agreed the current leadership should serve out its full term, which ends next year. He maintained that neither impeachment nor resignation should apply to any leader on either of the NU boards. Yahya has also sought to consolidate his position through NU's provincial branches, which he claims still support him.
However, Yahya faces an alleged internal coup attempt led by his own Secretary-General, Saifullah Yusuf, who also serves as Social Affairs Minister in President Prabowo Subianto's cabinet. Although intended to be NU’s executive leadership duo, Yahya admits he has not communicated with his secretary-general for some time.
Yahya's standing has further weakened following allegations involving his brother, Yaqut Cholil Qoumas. The former Religious Affairs Minister (2020–2024) is suspected of playing a central role in corruption and the misuse of haj quota allocations during his tenure.
Both Yahya and Yaqut are also known to have strained relations with Muhaimin Iskandar, chairman of the National Awakening Party (PKB) that has deep roots in NU. Muhaimin's political influence appears to have risen after he joined the Prabowo administration, despite having campaigned against Prabowo in the 2024 presidential election as Anies Baswedan's running mate.
NU continues to be a highly contested power base for political parties and national politicians due to its vast membership, strong grassroots influence, and the loyalty of its followers. Its broad presence in vote-rich regions such as East Java and Central Java further reinforces its significance as a major political battleground.
