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.
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The progress in the corruption case involving crude oil procurement at state oil and gas company Pertamina for the 2018–2023 period deserves appreciation. Yet this development may represent only the tip of the iceberg in Indonesia’s law enforcement efforts. The sentences handed down to the suspects are considered mild and lack deterrence effect, while the main actor behind the scheme remains elusive amid the recurring scandals surrounding Pertamina.
Investigators with the Attorney General’s Office (AGO) began probing the case in October 2024. After questioning 96 witnesses and two experts, and seizing 969 documents and 45 pieces of electronic evidence, prosecutors named nine suspects in February 2025.
Six suspects were drawn from the high-level ranks of Pertamina’s subsidiaries. These were PT Pertamina Patra Niaga president director Riva Siahaan, vice president of trading and other business Maya Kusmaya and VP of trading product Edward Corne; PT Kilang Pertamina Internasional VP of feedstock management Agus Purwono and VP of product optimization Sani Dinar Saifuddin; and PT Pertamina International Shipping president director Yoki Firnandi.
Also standing trial were suspects representing the private sector: Muhammad Kerry Adrianto Riza, the beneficial owner of PT Navigator Khatulistiwa; Dimas Werhaspati, a commissioner of PT Navigator Khatulistiwa and PT Jenggala Maritim; and Gading Ramadhan Joedo, a commissioner of PT Jenggala Maritim and president director of PT Orbit Terminal Merak.
According to the AGO, the alleged corruption caused Rp 25.4 trillion (US$1.5 billion) in direct state losses. Furthermore, it triggered an estimated Rp 171.9 trillion in broader economic damage stemming from inflated fuel prices, which placed a massive burden on the national economy and public purchasing power.
After more than a year of legal proceedings, the Jakarta Corruption Court handed down verdicts against the nine defendants on Feb. 26. However, all sentences were lighter than the penalties sought by the state prosecutors. For instance, Kerry was sentenced to 15 years in prison and ordered to pay a Rp 1 billion fine plus Rp 2.9 trillion in restitution. This fell short of the 18-year sentence and Rp 10.4 trillion in restitution sought by prosecutors.
On March 2, the AGO announced it would appeal the verdicts. Prosecutors argue that the court failed to adequately consider the staggering broader economic losses and the limited restitution obligations imposed on the defendants.
Beyond the lenient sentencing, the puzzle remains incomplete because the alleged mastermind behind the scheme is still at large: oil trader Mohammad Riza Chalid, who is Kerry’s father.
Investigators allege that as early as 2012, Riza pressured Pertamina to lease the Merak fuel terminal, operated by Orbit Terminal Merak, in Banten, without a competitive tender process. This lobbying reportedly spanned from 2012 to 2014.
Riza was officially named a suspect on July 10, 2025, and placed on the AGO’s wanted list a month later. Following international coordination, Interpol issued a Red Notice for him on Jan. 23. His current whereabouts are believed to be in Malaysia.
Riza is no ordinary figure in the country’s oil and gas landscape. Known for years as the "gasoline godfather", he was widely believed to wield immense influence over Pertamina Energy Trading Ltd (Petral), the company’s former trading arm. With a long history of connections to political elites, he was previously linked to the 2015 “papa minta saham” scandal that shook the foundations of Indonesian politics, evident in the arrest of then-House of Representatives speaker Setya Novanto.
Bringing Riza to justice is crucial to uncovering the modus operandi behind his alleged intervention in Pertamina’s governance. More broadly, prosecuting figures who operate behind the scenes remains the ultimate challenge for Indonesian law enforcement.
This is not an isolated case. Pertamina has been infested with corruption since the oil boom of the 1970s, when it served as both regulator and player in a lucrative industry. While several former president directors have been sentenced for graft, cases like that of Karen Agustiawan remain controversial for blurring the line between criminal corruption and legitimate business decisions.
Law enforcers continue to pursue multiple fronts, including the investigation into liquefied natural gas (LNG) procurement (2013–2020), which caused an estimated Rp 2.1 trillion in losses, and the mismanagement of pension funds at Pertamina, totaling roughly Rp 1.4 trillion.
The recent verdict is a milestone, but it also underscores a systemic problem. Without stronger accountability, total transparency and the political will to pursue the power players behind the curtain, corruption risks remaining a recurring feature of Indonesia’s energy sector.
