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.
Latest News
The import bribery case implicating three customs officials has entered a new phase with the discovery of several safe houses in Jakarta, where investigators found a stash of money amounting to billions of rupiah. The emergence of what appears to be a sophisticated bribery network not only further erodes institutional credibility but also raises a deeper question: Can corruption at the Customs Office truly be eradicated?
The Corruption Eradication Commission (KPK) uncovered four apartment units in North Jakarta and a house in Ciputat, South Tangerang, Banten, that were being used as safe houses. Investigators seized gold bars and cash totaling Rp 40.5 billion (US$2.45 million) in multiple currencies including rupiah, United States dollars, Singapore dollars and Japanese from these locations, as well as from the offices of logistics firm Blueray Cargo and suspects’ residences.
During a series of sting operations on Feb. 4 in Jakarta and Lampung, the KPK arrested 17 Customs Office employees. A day later, it named six suspects including three customs officials: Rizal, who served as the enforcement and investigation director from 2024 to January 2026; Sisprian Subiaksono, head of enforcement and investigative intelligence; and Orlando Hamonangan, head of the intelligence section.
The three other suspects were Blueray Cargo executives: owner John Field, import documentation head Andri and operations manager Dedy Kurniawan. John surrendered to the KPK on Feb. 7 after initially attempting to evade arrest during the sting operations.
This graft case extends beyond a conventional bribery scheme, as it involves deliberate manipulation of the customs risk management system. Under normal procedures, imported goods are assigned to either the green channel, for low-risk shipments with minimal inspection, or the red channel, for shipments requiring detailed scrutiny.
However, investigators reportedly found that Orlando had ordered an adjustment to the scanning system’s setting by fixing a 70 percent parameter, which enabled Blueray’s shipments to be routed through the green channel regardless of their customs classification, including prohibited and restricted goods (LARTAS). As a result, various textile products marked as LARTAS, including counterfeit bags, shoes and branded clothing, were allowed entry without proper inspection.
At the same time, Blueray allegedly falsified import documentation to understate shipping volume and thereby reduce duties to around Rp 40 million per container, while it charged clients Rp 200 million in import fees.
Given that the firm reportedly handled 1,500–2,000 containers per month, the illicit customs scheme between October 2025 and January 2026 incurred enormous potential losses to the state through systemic revenue leakage. In return, customs officials involved in the scheme allegedly received monthly bribes of around Rp 7 billion between December 2025 and February 2026.
Investigators have uncovered additional violations in Blueray’s corporate structure. The company reportedly established at least 20 affiliated entities as nominal importers to mask the identities of the true importers. This violated regulations prohibiting a single entity from acting as both freight forwarder and importer, since such an arrangement would significantly complicate traceability and enforcement.
The broader economic context amplifies the seriousness of the case. Indonesia’s textile industry has been under pressure from dumping practices, particularly by Chinese firms, amid global overcapacity and weakening demand. These combined pressures have led to factory closures and layoffs, including at major firms such as textile manufacturer PT Sri Rejeki Isman (Sritex).
While Customs and Excise Director General Djaka Budi Utama has yet to make a public statement on the matter, the KPK has indicated it may summon him for questioning related to the potential involvement of senior officials.
The reoccurrence of graft cases has prompted Finance Minister Purbaya Yudhi Sadewa to issue a stark warning: The Customs Office must undergo fundamental reform within a year or face a potential institutional freeze. Alternatively, Purbaya has floated a possibility of stripping the office of its responsibilities and appointing an external operator like Société Générale de Surveillance (SGS), reviving an arrangement implemented under former president Soeharto in 1985–1997.
Given the apparent systemic corruption at the Customs Office, reintroducing external oversight through a credible organization may warrant rigorous consideration. While not a panacea, such a move could disrupt entrenched networks, restore business confidence and safeguard state revenues.
