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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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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For nearly four months wildfires have ravaged Indonesia, exposing acute, systemic failures in government response and law enforcement. While the ongoing dry spell has exacerbated the crisis, suspected corporate land clearing by burning points to a deliberate, recurring practice that authorities have repeatedly failed to halt.
The scale of the destruction is alarming. At an emergency meeting with President Prabowo Subianto on Oct. 12, the National Disaster Mitigation Agency (BNPB) reported that 129,899.6 hectares of peatland had burned across six priority provinces: Central Kalimantan, South Kalimantan, West Kalimantan, South Sumatra, Jambi and Riau. Although officials claimed most blazes had been extinguished, active firefighting continued across another 639.2 ha. Furthermore, these figures omitted fires that had been burning unchecked across Papua for weeks.
Prabowo’s downplaying of the crisis, insisting that only a small area was still ablaze, contradicts the humanitarian toll on the ground. By Oct. 13, cases of respiratory infections linked to toxic haze had reached 283,270 across seven provinces.
Air quality measurements expose the depth of the public health emergency. On Oct. 15, the air quality index (AQI) in Pangkalan Bun, Central Kalimantan, spiked to a staggering 982, more than three times the minimum for the “hazardous” level, while Pontianak in West Kalimantan logged 280, near the upper range of the “very unhealthy” level. Even Jakarta, notorious for chronic pollution, recorded a far lower AQI of 176. Progress cannot be measured merely by hectares extinguished; it must be judged by the state's capacity to protect human lungs and prevent recurrent catastrophe.
The fallout has long breached national borders: Singapore recorded its highest PM2.5 readings of the year on Oct. 14, Timor-Leste shuttered classrooms for three days starting on Oct. 15, and Malaysia closed schools across several states as transboundary haze intensified. The crisis has evolved from an internal ecological disaster into a regional health and diplomatic liability.
Public patience has run out. Grassroots outrage has surged across social media, where campaigns like “Our Forests Are Still Burning” have amassed millions of shares. Yet the backlash targets not only environmental devastation but also presidential priorities. While millions choke on toxic smoke, President Prabowo has maintained routine appearances at soccer events and taken foreign trips. Whatever diplomatic or political justifications these engagements carry, the optical disconnect is glaring: a presidency conducting business as usual while citizens gasp for clean air.
The fury has migrated to the streets. On Oct. 13, student protesters picketed the South Sumatra Police headquarters in Palembang, demanding criminal accountability for corporate fire starters. The previous week on Oct. 5, they had rallied outside the South Sumatra Governor’s office demanding transparency in wildfire management expenditure, real enforcement against offending agribusinesses and institutional accountability.
El Nino alone cannot serve as an alibi. In South Sumatra's Ogan Komering Ilir regency, firefighters from the Forestry Ministry’s Manggala Agni brigade uncovered burned plots in Pedamaran district that had been leveled by heavy machinery and prepared for planting, while neighboring oil palm concessions remained untouched. The site bore all the hallmarks of intentional arson to facilitate cheap plantation expansion.
The state’s diplomatic posturing has also invited skepticism. After Japan deployed Self-Defense Forces helicopters to help fight blazes in Kalimantan throughout September, Indonesia abruptly terminated the mission on Sept. 29, saying it could handle the rest domestically. Neighbors Malaysia and Singapore have likewise offered assistance.
The national emergency apparatus is undeniably active: Tens of thousands of personnel are deployed alongside heavy-duty pumps and deep well rigs. However, self-reliance is admirable only when backed by results. When toxic haze crosses international boundaries, national pride must yield to regional responsibility.
Subsurface peat fires are notoriously obstinate, smoldering underground for weeks before flaring anew. But precisely because these conditions are well understood, prevention must take precedence. Indonesia has grappled with this disaster cycle for decades; nothing about this year’s crisis was unpredictable.
The fundamental flaw remains the chasm between reactive mobilization and structural prevention. Credible governance demands year-round surveillance, early intervention, firm prosecution of corporate culprits and total transparency in burned area data. When civil society groups document burned acreage far exceeding official reports, public trust erodes.
Prabowo’s rhetorical calls for prevention will mean nothing if enforcement lapses persist before the next dry season. The government must blacklist culpable firms, protect peatlands and prosecute offenders before seasonal haze hardens into an annual public health crisis. These wildfires are a test of whether Indonesia can enforce its own laws, protect its populace and honor its international commitments. Quelling the flames is not enough; the state must end the culture of impunity that ignites them.
