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.
View moreTourism
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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Street protests have reignited the drive to pass the long-stalled asset forfeiture bill. Under renewed public pressure, the House of Representatives has committed to wrapping up deliberation by year-end, nearly two decades after the reform was first tabled. The real test now is whether this self-imposed deadline will finally overcome years of legislative foot-dragging, and whether lawmakers can be held accountable if it slips again.
The spark came on Aug. 27, when demonstrators from the Pati United People’s Alliance (AMPB) and allied civil groups rallied outside the parliamentary complex in Senayan, Jakarta. Protesters demanded the bill’s swift passage alongside harsher penalties for graft convicts, up to and including capital punishment. At the same time, the Yogyakarta Student Executive Boards Forum (BEM) held a parallel demonstration outside the city’s Presidential Palace.
Following talks with the rally leaders, House leaders pledged to finish deliberations by Dec. 15, reportedly offering to resign if they miss the target.
So far, however, the lawmakers have kept details under wraps. While Commission III noted that 13 categories of criminal offenses are being weighed for inclusion, the complete draft had not been made public by early September. Deputy House Speaker Cucun Ahmad Syamsurijal defended the secrecy, cautioning that an early release could invite public misinterpretation while talks remain fluid.
Part of the gridlock stems from the bill’s sheer scope. Rather than tweaking existing statutes, the legislation introduces an entirely novel legal mechanism to Indonesia’s legal landscape. Deputy House Speaker Sufmi Dasco noted that lawmakers are still balancing public input against the need to align the draft with the newly enacted Criminal Code (KUHP) and the Criminal Law Procedure Code (KUHAP).
Yet the hurdles are far from purely technical.
Asset forfeiture grants the state an extraordinary prerogative: seizing property suspected of illicit origins without waiting for a final criminal conviction. Granting such leverage demands rigorous evidentiary benchmarks, strict judicial oversight and reliable mechanisms for individuals and innocent third parties to challenge wrongful seizures.
These civil liberty concerns cut across party lines. Indonesian Democratic Party of Struggle (PDI-P) Secretary-General Hasto Kristiyanto reiterated his party’s backing for the bill’s anti-graft goals, but cautioned that handing sweeping powers to law enforcement without robust checks risks turning the measure into a political weapon.
Lawmaker Habiburokhman echoed that warning, arguing that the statute must not be weaponized to extort citizens, silence dissenters, or target political rivals. Taking a systemic view, Commission XIII member Rieke Diah Pitaloka urged lawmakers to build an end-to-end framework - covering asset tracing, freezing, confiscation, management and restitution - backed by transparent jurisdiction, firm judicial review and good-faith third-party protections.
Here lies the central political dilemma: The same legal muscle intended to strip corrupt elites of illicit fortunes also expands state interference with private property. The debate is no longer about whether to fight graft, but how much power the state should hold - and who gets to keep it in check.
The idea itself has been languishing since 2009, when the Financial Transaction Reports and Analysis Center (PPATK) submitted an initial draft to then-president Susilo Bambang Yudhoyono. The bill later drifted onto president Joko “Jokowi” Widodo’s National Legislation Program (Prolegnas), only to be pushed aside session after session.
The delay is striking given the broad consensus behind its core objective: Indonesia urgently needs an effective way to claw back stolen funds. According to Indonesia Corruption Watch (ICW), corruption cases between 2019 and 2023 caused Rp 234.8 trillion (roughly US$14.2 billion) in state losses, yet authorities recovered just Rp 32.8 trillion - a modest 13.9 percent.
External commitments haven't broken the domestic stalemate either. Indonesia secured full membership in the Financial Action Task Force (FATF) in October 2023, binding the nation to global standards for tracing and confiscating illicit gains. Yet international standing has done little to resolve domestic legislative hesitation.
While President Prabowo Subianto has framed asset recovery as a cornerstone of his anti-graft agenda, slow progress on the ground has kept public frustration on a boil.
Procedural caution may explain why lawmakers have taken their time, but it also raises the stakes: parliament must now prove that twenty years of deliberation yielded a watertight, abuse-proof law - not simply another excuse to delay.
The December deadline is more than a legislative marker; it is a litmus test for whether the House can turn rhetoric into reform without trading the rule of law for unchecked state authority.
