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

October 9, 2025

Public demand for police reform necessitates the replacement of National Police chief Gen. Listyo Sigit Prabowo, who bears ultimate responsibility for the recent wave of bloody demonstrations. Otherwise, it would be yet another example of institutional failure, with the police under Listyo’s leadership remaining entangled in serious abuses of power, a lack of accountability and persistent public distrust.

Listyo previously served as the head of the Criminal Investigation Agency (Bareskrim) and was inaugurated by then-president Joko ‘’Jokowi’’ Widodo as the National Police chief on Jan. 27, 2021, becoming the longest-serving police chief in years.

During his tenure, the police force under Listyo has faced several high-profile cases that caused widespread public anger. These controversies included the recent wave of demonstrations, the Kanjuruhan Stadium tragedy in Malang, East Java, on Oct. 1, 2022, and an online gambling scandal allegedly backed by police officers. The latter also involved police general, Ferdy Sambo, who last served as head of the Professional and Security Division (Propam), notorious for his role in the murder of his aide-de-camp, Nofriansyah Yosua Hutabarat.

Despite these serious controversies, Listyo’s position has remained politically secure. He is viewed as instrumental in safeguarding the political status quo during last year’s presidential election. His lengthy tenure reflects Jokowi’s strategy to ensure the National Police remain under his influence even after leaving office in 2024, despite President Prabowo Subianto’s prerogative to replace Listyo at any time.

However, any decision by President Prabowo to remove Listyo would be perceived by the public as a move to distance himself from Jokowi’s camp, which played a significant role in securing his electoral victory. Prabowo would prefer to avoid such a step in the interest of maintaining political stability, even though Jokowi holds no direct control over a political party.

Deputy State Secretary Bambang Eko Suhariyanto emphasized the central role of the Police Reform Committee, a body the President was expected to announce soon after returning from his recent overseas trip, but which has yet to materialize despite his return.

This ad-hoc committee will consist of seven to nine members, one of whom is expected to be former coordinating political, legal and security affairs minister Mahfud MD. Although it has not yet been formally established, Bambang noted that coordination between the committee and the National Police’s internal reform team is already underway.

On the other hand, Listyo appears determined to hold onto his position as a way of “saving” the police institution in its current state of crisis. He appears to be attempting a restructuring of the police force by replacing the head of the Intelligence and Security Agency (Kabaintelkam) and the commander of the Mobile Brigade Corps (Brimob), two units widely regarded as responsible for the unrest and casualties during the recent demonstrations.

However, these changes were also necessary since the previous officials had reached retirement age. Beyond ensuring his full control over these two strategic units, the reshuffle is also seen by some as a power-consolidation maneuver by Listyo.

Furthermore, on Sept. 17 Listyo established the Police Reform Transformation Team, chaired by Police Education and Training Institute chief Comr. Gen. Chryshnanda Dwilaksana. The team consists of 52 officers, 47 senior officers and five mid-ranking officers.

Deputy House of Representatives Speaker Sufmi Dasco Ahmad said this internal police team was formed to prepare data required for the broader police reform agenda initiated by the President. He emphasized that there was no conflict between the two reform teams.

Nevertheless, skepticism has emerged. The chairman of the Indonesian Legal Aid Foundation (YLBHI), Muhamad Isnur, questioned the credibility of the current reform teams, whether formed by the police or by the President. According to him, the involvement of individuals closely tied to the police would not bring about fundamental change within the institution.

Such skepticism is understandable, given that the recommendations of the Joint Fact-Finding Team (TGPF) for the Kanjuruhan tragedy have yet to be fully implemented by the police, particularly with respect to transparency and thorough investigations into all those responsible.

Indeed, police reform has proven extremely difficult to realize. Even during the early Reform era, when the People’s Consultative Assembly Decree No. VII/2000 mandated that police officers retire or change status if they wished to serve outside the police force, the reality today shows otherwise, according to former chief of the Indonesian Military’s intelligence agency, Soleman B. Ponto. According to him, there are currently 4,351 active police officers serving outside the formal police structure.

It is therefore unsurprising that within the first 100 days of President Prabowo’s administration, the National Police ranked as the least trusted law enforcement institution, with a public trust level of just 71 percent, significantly behind the Attorney General’s Office (77 percent), the courts (73 percent) and the Corruption Eradication Commission (72 percent).

This data starkly illustrates the depth of public mistrust and makes the case for a change of guard even more pressing.

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