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

April 24, 2026

Indonesian popular culture is gaining global traction, with Joko Anwar’s Ghost in the Cell (2026) set to screen in 86 countries and music artists like NIKI, Anggun, Rossa and Voice of Baceprot touring internationally. Yet these successes remain largely driven by individual efforts, leaving the country’s creative industries with a fragmented and under-institutionalized global presence, highlighting the need to position the sector as a strategic industry.

Unlike South Korea, which has treated its culture as a strategic pillar of its creative economy as early as the 1990s, Indonesia is yet to place the sector at the center of its development strategy. Instead, the national economy remains heavily reliant on natural resource, particularly coal and palm oil as well as manufacturing industries. Without a well-defined policy framework and stronger government support, Indonesia risks underutilizing its creative industries, leaving their potential unfulfilled.

In 1994, South Korean president Kim Young-sam reportedly watched the Hollywood hit Jurassic Park and came away with a striking realization: the movie generated revenue equivalent to exporting 1.5 million cars, more than twice that country’s annual automobile exports at the time. That moment helped shift the policy mindset to position culture not merely as art but as a high-value industry.

Today, the Korean Wave is a global phenomenon and a core pillar of South Korea’s economic strategy. Its impact extends far beyond screens and stages and by 2025, cultural exports including music, games and film, alongside related sectors such as K-beauty and K-food, had reached an estimated US$37.94 billion, making culture the country’s fourth-largest export sector.

In Indonesia, the spillover effects of the creative economy are already visible, particularly in film. One notable example is Laskar Pelangi (The Rainbow Troops, 2008), which significantly boosted local tourism for Belitung Island with a surge in visitor arrivals following its release, contributing to a 20 percent increase in hotel occupancy between 2008 until 2009.

More recently, Ngeri-Ngeri Sedap (Missing Home, 2022) showcased the landscapes of North Sumatra, particularly around Lake Toba, while highlighting Batak culture. The film received strong institutional backing, including promotion by former tourism minister Sandiaga Uno. Although official data remain limited, early indications suggest a similar boost in tourism following its release in 2022. These cases demonstrate that, much like South Korea, Indonesia’s cultural products can generate meaningful economic spillovers.

Investment in the creative economy is gaining momentum and reached Rp 183.01 trillion ($10.68 billion) last year, or 9.48 percent of total investment. This reflects growing interest from both domestic and foreign investors, particularly in digital subsectors such as mobile applications and content development. Further, the sector is projected to absorb 27.4 million workers, underscoring its expanding role in job creation. Indonesia’s creative capacity, therefore, is no longer in question.

However, despite its vast potential, the culture sector remains constrained by structural weaknesses, including unclear definitions, limited skills, inadequate infrastructure and weak enforcement of intellectual property rights. The absence of a reliable, integrated data system also complicates policymaking and deters investment, as both government and investors lack the tools to assess either performance or risks.

While other countries have strategically leveraged creative industries, particularly the film industry, to drive tourism, exports and broader economic growth, Indonesia still lacks a coherent, long-term national strategy. Without a clear road map supported by stronger institutions, better data governance and targeted policy interventions, the creative economy will remain fragmented, unable to scale into a competitive and sustainable engine of growth.

As one of the most populous and culturally diverse countries in the world, Indonesia’s creative economy holds significant untapped potential. In the digital era, Indonesians are not only consuming content but also increasingly creating music, film and digital products, which are rising in quality as they gain wider global relevance.

To move forward, the country must begin treating its creative economy not as a complementary sector but as a strategic pillar of national development. This requires more than rhetoric: It demands coordinated policies to strengthen data systems, improve intellectual property protection, expand funding access and invest in talent and infrastructure.

Equally important is a clear strategy for positioning Indonesia’s cultural exports in global markets. The success stories and demand growth are already evident. What remains is the political will to scale them. Without this, Indonesia risks remaining a consumer market for global content instead of emerging as a producer of value in the global creative economy.

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