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
The Corruption Eradication Commission (KPK) has named former religious affairs minister Yaqut Cholil Qoumas a suspect in connection with alleged graft in the administration of the haj pilgrimage in 2024.
The case centers on the misuse of haj quotas, an issue that has historically plagued the ministry. The scandal involves substantial financial resources and implicates several prominent figures from Indonesia’s largest Muslim organization, Nahdlatul Ulama (NU).
KPK director of investigations Brig. Gen. Asep Guntur Rahayu revealed that Yaqut is accused of unilaterally misallocating an additional haj quota of 20,000 pilgrims obtained from the Saudi Arabian government in 2024.
According to the investigation, Yaqut, a politician from the National Awakening Party (PKB), split the additional quota evenly: 50 percent for the regular haj and 50 percent for the more expensive special haj. This allegedly contravened the Administration of the Haj and Umrah Law, which mandates that 92 percent of the quota be allocated to the regular haj and only 8 percent to the special haj.
The additional quota was secured in late 2023, when then-president Joko “Jokowi” Widodo met with Saudi Crown Prince Mohammed bin Salman to address waiting times for Indonesian pilgrims that can span decades. Saudi Arabia subsequently granted the extra 20,000 spots to Indonesia as a state, not for private discretionary distribution.
Yaqut is suspected of causing the largest financial damage in the history of religious ministry corruption. Estimated state losses reach into the trillions of rupiah. In comparison, previous corruption cases under ministers Said Agil Husin Al Munawar (2001–2004) and Suryadharma Ali (2009–2014) involved losses of hundreds of billions and Rp 27 billion, respectively.
The alleged mismanagement reportedly prevented 8,400 prospective regular pilgrims from departing for the Holy Land.
The KPK has seized approximately Rp 100 billion linked to the case. However, investigators acknowledged difficulties in recovering all assets, as several travel agents have allegedly converted the funds into personal property.
In addition to Yaqut, the KPK has named Ishfah Abidal Aziz, a former special staff member to the minister, as a suspect. The commission is also questioning Aizzudin Abdurrahman, head of the Economic Division of NU’s Central Executive Board, and Muzakki Cholis, deputy Katib Syuriyah of NU’s Jakarta regional board.
To date, neither Yaqut nor Ishfah has been detained, despite their formal designation as suspects.
Abdul Wachid, the deputy chair of House of Representatives Commission VIII, criticized the slow pace of the investigation, noting that suspects were only named recently despite strong evidence surfacing earlier. The House had already flagged irregularities through a special committee of inquiry in 2024.
The case is politically sensitive given Yaqut’s background. He served as minister from December 2020 to October 2024 and has been chairman of the NU-affiliated Ansor Youth Movement since 2016.
Responding to the involvement of NU figures, Yahya Cholil Staquf, NU chairman and Yaqut’s elder brother, emphasized that the organization was not involved in the case implicating his sibling.
Yaqut becomes the 10th member of president Jokowi’s former cabinet to be implicated in corruption, joining a list that includes trade minister Thomas Lembong, social affairs ministers Idrus Marham and Juliari Batubara, youth and sports minister Imam Nahrawi, maritime affairs and fisheries minister Edhy Prabowo, communications and information minister Johnny G. Plate, agriculture minister Syahrul Yasin Limpo, deputy law minister Edward “Eddy” Hiariej and education and culture minister Nadiem Makarim
Except for Tom, Nadiem and Eddy, the members of Jokowi’s cabinet are politicians. Tom was found guilty in July last year but immediately received a pardon from President Prabowo Subianto, while Eddy was acquitted.
Due to its vulnerability to graft, the management of the pilgrimage has been stripped from the Religious Affairs Ministry. It is now under the jurisdiction of the Haj and Umrah Ministry, established in 2025. The new minister, Mochamad Irfan Yusuf (an NU figure), is supported by Deputy Minister Dahnil Anzar Simanjuntak, a prominent Muhammadiyah figure close to President Prabowo.
