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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Domestic workers work long hours and do all kind of chores for low wages and have little or no legal recourse in case of harassment or abuse, as they are completely at the mercy of their employers, or “masters” in this system of modern slavery that persists in Indonesia.
At least, that was until the House of Representatives passed the Law on Domestic Workers Protection (UU PPRT) on April 21. Among the rights and protections it guarantees, millions of domestic workers, mostly women, will gain legal status and recognition for the first time.
The Domestic Workers Protection Bill had lingered at the House for more than 22 years, indicative of a lack of enthusiasm and sense of urgency, not only on the part of legislators but also the general public. President Prabowo Subianto, in his Labor Day address last year, promised the bill would be passed within three months.
The House missed that deadline but enacted the law in time for May Day 2026 with little fanfare, to judge by the scant attention mainstream media gave the milestone legislation. Nevertheless, the new law could impact the way millions of families across the country treat their servants. And therein lies the rub.
While the law lists the various rights and obligations that must be met by all stakeholders, employers, workers and related businesses such as home cleaning services, it falls short on details related to enforcement and more importantly, oversight.
For example, the law mandates a formal employment agreement that outlines the employee’s rights and the employer’s obligations. But any negotiation between the two sides would involve an unequal power relationship and most likely result in an unfair contract for the domestic worker.
Furthermore, the law merely stipulates entitlements such as “decent wages”, “humane working hours”, “breaks and days off” and “holidays” to be determined by mutual agreement and does not set a legal framework.
It does, however, stipulate a minimum age of 18 as well as the provision of health, social and employee insurance for domestic workers. If employers register their servants for such coverage, and that is a big if, the government will contribute a share of the premium and provide social assistance.
The new law does not set a minimum wage or maximum working hours, which would be expected in a labor law.
Though it offers some protection for domestic workers, the new law also protects the interests of domestic employers. Oversight is a critical issue, and the legislation does not make clear who is responsible for contractual enforcement, provided that one is signed, or how violations will be dealt with.
Lita Anggraini, coordinator of the National Advocacy Network for Domestic Workers (Jala PRT), welcomes the new legislation but says it only covers 75 percent of the obligations covered in Convention No. 189 of the International Labor Organization.
The treaty guarantees domestic workers the same basic rights as all other employees and sets standards for fair working conditions, including reasonable working hours, weekly rest and protection from employer abuse.
Jala PRT said it received 1,184 reports on violence against domestic workers, including 26 cases of sexual violence in 2025, though it noted that many more cases of violence went unreported.
Domestic workers are typically tasked with cleaning, washing clothes, cooking, babysitting and accompanying children to and from school. In the absence of legal protection, it is not uncommon for them to be subjected to bullying, harassment and worse at the hands of employers or their family members. The way domestic workers in Indonesia are treated, with long hours, meager pay and harsh working conditions, sometimes involving abuse, their employers would be liable under antislavery laws in Western countries. But no one in Indonesia is talking about phasing out these jobs or introducing antislavery legislation.
The ILO estimates that as many as 5 million Indonesians, mostly women, are employed in domestic service. Millions also work in this sector abroad, including in Hong Kong, Malaysia, Saudi Arabia, Singapore and Taiwan. In fact, the Indonesian government has insisted on overseas employers signing contracts with specific salaries and working hours as well as legal protections in some of these countries.
Ironically, many civil society organizations that are actively demanding protections for Indonesian migrant workers abroad are less passionate about or simply turning a blind eye to legal protections for domestic workers at home.
The Domestic Workers Protection Law promises to improve the lot of domestic workers but not much beyond legal recognition. Urban Indonesians need housemaids, and want them cheap.
