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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Imagine a corrupt official who has stolen billions of rupiah from state coffers. Under a proposal floated by President Prabowo Subianto , that official could walk free, no conviction, no prison, simply by handing the money back. It sounds like restitution; critics say it looks a lot like a pardon with a price tag. The proposal, outlined in Prabowo's Aug. 14 State of the Nation Address, would offer amnesty to corruptors who return stolen state funds. It has reignited a debate that cuts to the heart of his presidency: Is Indonesia's war on corruption for real, or is it starting to look negotiable?
The plan was framed as pragmatic: recover the money first, worry about punishment later. But it raises an uncomfortable question. If corrupt officials can buy their way out of consequences by returning even part of what they stole, what does that say about the government's actual commitment to accountability?
The stakes are high precisely because Prabowo built his political brand on the opposite promise. He came to office vowing an uncompromising fight against graft, calling corruption one of Indonesia's greatest obstacles to prosperity and warning state officials to clean up their act or face consequences. But rhetoric and policy are not always the same thing.
Forgiving corruptors in exchange for asset restitution marks a real departure from a long-standing principle: that corruption is a punishable crime, regardless of whether the money is eventually returned. Indonesia Corruption Watch (ICW) has pointed out that the Corruption Law explicitly says returning state losses does not erase criminal liability.
Critics warn the proposal risks sending a dangerous signal: that corruption could become a crime that perpetrators can simply pay their way out of rather than one with unavoidable legal consequences.
Defenders counter that recovering stolen assets should be the priority. Returning trillions of rupiah to state coffers, they argue, may benefit the public more than locking up offenders. But that argument invites its own follow-up question: If asset recovery really is the priority, why has the government shown so little urgency in advancing the long-stalled asset forfeiture bill (RUU Perampasan Aset), a reform that many anticorruption experts consider one of the most important tools Indonesia could adopt?
Enacting that bill would strengthen the state's power to seize illicitly acquired wealth.
For years, activists have argued that corrupt actors should lose not just their freedom but the financial fruits of their crimes. Yet the legislation remains stuck. While the delay can't be pinned on the President alone, critics note that a leader's true priorities tend to show up in what they spend political capital on, and the absence of a genuine push for this bill undermines the claim that asset recovery sits at the center of Prabowo’s anticorruption strategy.
Doubts about the President 's commitment extend beyond this one proposal. His administration has supported or approved clemency and amnesty measures for those convicted in high-profile corruption cases. ICW and Transparency International Indonesia have both warned that such interventions risk weakening the principle of equal treatment under the law and could create the impression that political considerations are shaping judicial outcomes.
Just as telling is the limited attention paid to strengthening anticorruption institutions. Since the 2019 revision of the KPK Law, many experts argue the country's premier antigraft agency has been weakened significantly. A president genuinely committed to structural reform might be expected to prioritize restoring the KPK's independence and authority. So far, though, there's little sign that's happening. Observers increasingly note that the government talks often about corruption but shows far less enthusiasm for rebuilding the institutions needed to fight it systematically.
To be fair, anticorruption law enforcement hasn't disappeared under Prabowo. Major investigations have continued, including high-profile cases involving senior executives at state-owned enterprises, such as Pertamina. Supporters cite these cases as proof the government is serious and willing to pursue powerful figures. But anticorruption success can't be measured by case count alone. Individual prosecutions matter, but lasting progress depends on strong institutions, robust laws and credible deterrents. And on that front, the concerns keep piling up.
Taken together, the proposed amnesty for restitution, the stalled asset forfeiture bill, the use of clemency in corruption cases and the lack of momentum on KPK reform form a pattern that's hard to dismiss as coincidence. No single one of these developments proves Prabowo has abandoned the fight against corruption. But together, they raise a legitimate question: Is his administration pursuing deep structural reform or merely practicing selective enforcement?
The issue isn't whether the President opposes corruption; his public statements leave little doubt that he does. The more consequential question is whether he's willing to pursue the institutional and legal reforms needed to eradicate it, even when doing so threatens powerful interests. Until there's stronger evidence of that, doubts about the depth of his commitment aren't going away.
