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 free nutritious meal program, intended to meet the nutritional needs of millions of students, faces significant implementation issues. Despite being a government priority, its large scale lacks organizational discipline and clear institutional alignment, leading to uncoordinated execution, especially concerning its alignment with the academic calendar and school vacations.
Concerns arose when raw ingredients, ultra-processed foods and sugary snacks appeared on the program's menu in some areas of South Tangerang, Banten. These items were distributed by nutrition fulfillment service units (SPPGs) to approximately 4,075 students to be stored at home during the extended school break. However, the head of the South Tangerang City Education and Culture Agency denied any coordination with the SPPGs on this distribution method.
In response, Dadan Hindayana, head of the National Nutrition Agency (BGN), clarified that the program's policy has never included distributing raw ingredients or ultra-processed snacks. He explained that this isolated incident involved only one out of 1,885 active SPPGs and resulted from a field officer's misinterpretation.
Hindayana also noted the program continues during the vacation, serving pregnant women, breastfeeding mothers and toddlers via community health posts or home deliveries.
Edy Wuryanto, a member of Commission IX of the House of Representatives, urged the BGN to finalize technical guidelines for vacation period implementation to prevent future distribution and meal composition issues.
To ensure consistent implementation of this large-scale program, the government has involved the security apparatus, including the police and the Indonesian Military (TNI), blurring civil and military roles.
On June 25, National Police chief Gen. Listyo Sigit Prabowo broke ground for 24 SPPG kitchens in local police precincts in Central Java, aiming to serve around 90,717 beneficiaries within three months. The Army also reported operating 71 kitchens in Jakarta, funded by the BGN, and has constructed 190 of the 1,300 SPPGs planned for 2025. The TNI is tasked with logistical support, distribution, oversight and evaluation, especially near district military commands.
However, Indonesia Corruption Watch (ICW) has expressed concern over the TNI's involvement, viewing it as a breach of the clear separation between civil and military functions in community service programs.
Amid concerns over unclear responsibilities and institutional management, the free meals program's budget has also faced setbacks. Finance Minister Sri Mulyani stated the program was initially set to receive an additional Rp 100 trillion (US$6.16 billion), potentially reaching Rp 171 trillion, to create a multiplier effect for micro and small enterprises.
However, as of June 12, only Rp 4.4 trillion had been disbursed, reaching just 4.89 million of its 82.9 million targeted beneficiaries through 1,716 SPPGs. The government insists on reaching the full target by year-end.
Due to slow budget absorption, the projected funding needs for 2025 have been revised downward from Rp 171 trillion to Rp 121 trillion. For 2026, the BGN is allocated the largest ministry/agency budget at Rp 217.86 trillion, with Rp 210.4 trillion specifically for the free nutritious meal program.
This exceeds the budgets of the Defense Ministry (Rp 167.4 trillion), National Police (Rp 109.6 trillion), Health Ministry (Rp 104.3 trillion) and Social Affairs Ministry (Rp 76 trillion).
According to the Global Child Nutrition Foundation, Indonesia’s free meals program could become the second-most expensive globally, after the United States ($29.4 billion in 2023), and significantly higher than France's third-highest expenditure (just over $10 billion in 2023).