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.
Latest News
The armed conflict plaguing Papua has intensified sharply over the past two weeks, compounding decades of violence that have long gripped the region. This latest escalation has once again prompted widespread calls for restraint, peaceful dialogue and a nonviolent approach to resolving the protracted crisis.
To date, the ongoing hostilities have claimed thousands of lives and driven the number of internally displaced persons (IDPs) in Papua to an estimated 122,000. While the West Papua National Liberation Army (TPNPB), the armed wing of the Free Papua Movement (OPM), has been blamed for a series of recent attacks, the operations conducted by the Indonesian Military (TNI) have also come under increasing scrutiny.
According to recent monitoring, much of the latest violence has been concentrated in the Sugapa and Agisiga districts of Intan Jaya, a mountainous regency in Central Papua.
The resulting toll highlights a grim pattern that began on June 27, when a soldier was killed and three others wounded. Two days later on June 29, three separate incidents resulted in the deaths of a church worker and a pastor, while two workers building a church in Titigi village were injured in a shooting. The bloodshed continued to July 2, when three other incidents claimed the lives of a pregnant woman, a church worker and a pastor.
A common thread running through these tragedies is the critical need for thorough, impartial investigations as competing narratives frequently obscure the truth. A stark example is the death of Melkiana Duwotau, who was pregnant when a bullet pierced the wall of her honai (traditional house) and struck her in the head, killing her.
The Intan Jaya administration reported that the gunfire was believed to have originated from the direction of a nearby TNI post. The military denied this, however, and the Habema Joint Regional Defense Command (Koops Habema) alleged that the shots were fired by an armed separatist group.
Questions also surround the July 2 death of church worker Okto Tigau, whom the military had identified as a member of an armed separatist group. Local accounts, however, described him as an ordinary civilian. The Papua office of the National Commission on Human Rights (Komnas HAM) said it received reports that Tigau had been missing since June 29. Two days later, his body was discovered with multiple stab wounds. Local sources allege he had been detained by security personnel.
The July 2 violence was not confined to Intan Jaya. In an incident that drew international attention, United States national Nicholas Francis Gosselin, a pilot with PT Associated Mission Aviation (AMA), was shot dead by separatist rebels after landing in Yahukimo, Papua Highlands. The attackers subsequently set his aircraft on fire.
Unlike other recent incidents, responsibility for this attack was openly claimed: TPNPB spokesperson Sebby Sambom said Gosselin’s killing was intended to send a "message" to both Jakarta and Washington over their failure to address the root causes of the conflict between the rebel group and the TNI. Sambom also alleged that the aircraft had repeatedly transported military personnel, violating the group’s ultimatum.
The tragedy recalls the high-profile hostage incident involving New Zealand pilot Phillip Mehrtens, who was abducted by Papuan rebels in February 2023 after landing a small commercial aircraft in Papua Highlands’ remote Nduga district. After more than a year in captivity, Mehrtens was finally released in September 2024.
The latest surge in bloodshed has renewed urgent calls from religious groups, as well as the legislature and the executive branch, for concrete de-escalation efforts.
The Indonesian Communion of Churches (PGI) has urged all parties to end all forms of violence and called for the immediate pursuit of peaceful dialogue as the only sustainable path forward. In the House of Representatives, Commission XIII member Yan Permenas Mandenas has called on the TNI commander to conduct a comprehensive evaluation of security operations across the volatile mountainous regions of Papua.
Meanwhile, the executive leadership has emphasized restraint and systemic reform. Deputy Human Rights Minister Mugiyanto called on both the TNI and the National Police to exercise maximum restraint. Human Rights Minister Natalius Pigai likewise stressed that achieving lasting peace in Papua could not be the responsibility of a single institution or ministry, arguing instead that a durable solution required the commitment and participation of all stakeholders.
Ultimately, this latest wave of violence serves as a stark reminder that the Papua conflict cannot be resolved through force alone. As competing narratives continue to emerge and civilians bear the brunt of the toll, ensuring strict accountability for each incident while creating space for credible, structured dialogue remains the only viable way to break a cycle of conflict that has persisted since the 1960s.
