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.
Latest News
Indonesia has once again been forced to confront an uncomfortable question: What happens to the principle of equality before the law once the courtroom doors close?
The question has resurfaced with renewed urgency following a Sept. 23 inspection by the Indonesian Ombudsman at Cibinong Penitentiary in West Java, which uncovered what appeared to be a cluster of well-appointed private residences built directly inside the prison complex. Footage of the unannounced visit quickly went viral. The quarters were furnished with amenities far more typical of serviced apartments than correctional cells, featuring air conditioners, flat-screen televisions, refrigerators, plush sofas and formal dining tables. At one point, an individual was captured hurriedly shutting a door as investigators approached, evidently attempting to evade scrutiny.
According to the Ombudsman, the inspection team identified more than 10 house-like structures on the grounds, alongside luxury vehicles, a fully equipped gym and a golf simulator under construction. One occupant identified himself as an inmate, though correctional officers quickly intervened to block further questioning.
The revelations provoked swift public outcry, fueling demands to uncover how such accommodation could exist inside a state penitentiary and who authorized their use. To its credit, the government acted rapidly. On Sept. 25 and 26, the Immigration and Corrections Ministry questioned 52 inmates and more than 50 facility staff members. On Sept. 26, the ministry suspended Cibinong warden Wisnu Hani Putranto alongside four senior administrative officers pending a full inquiry. Yet subsequent disclosures revealed problems that run far deeper than unauthorized comforts.
During a Sept. 28 hearing before House of Representatives Commission XIII, Director General of Corrections Mashudi conceded that the Cibinong compound housed 16 residential units, 13 of which were never registered as state assets. Mashudi maintained that the buildings were intended as official staff residences and assimilation facilities rather than illicit cells. However, he also admitted that two inmates, Ahmad Albani and Hasan Tjhie, were present inside the facilities during the inspection. Both men were convicted in the high-profile PT Timah graft case, each handed 10-year sentences by the Jakarta High Court in 2025.
The Ombudsman laid out even more troubling details during a separate hearing before House Commission II the following day. Investigators revealed that corruption convict Jimmy Masrin, the former president commissioner of PT Petro Energy sentenced in March 2026 in the Indonesia Eximbank graft case, was suspected of occupying one of the luxury units. Furthermore, the team discovered CCTV equipment throughout the residential enclave, directly contradicting the warden’s earlier assertion that the area lacked surveillance, though investigators could not immediately confirm whether the cameras were operational.
Compounding the issue of preferential housing, the Ombudsman cited reports from inmates’ families alleging that prisoners were routinely subjected to illegal levies of Rp 150,000 (US$8.40) per week simply to secure basic treatment. The scandal has therefore moved well past the initial shock of opulent interiors. The pressing issues now center on administrative complicity: who authorized access, how these shadow assets operated outside state registers and to what extent wealth and connections continue to purchase an entirely different reality behind bars.
Cibinong is hardly an anomaly in Indonesia’s correctional history. In January 2010, the Judicial Mafia Eradication Task Force discovered corruption convict Artalyta Suryani, better known as Ayin, occupying an exclusive suite at East Jakarta’s Pondok Bambu Women’s Penitentiary complete with an air conditioner, television, refrigerator and private bathroom. Seven years later, the National Narcotics Agency seized unauthorized communication rigs and electronics from the cell of drug lord Harianto Chandra at Cipinang Penitentiary in East Jakarta.
By 2018, the Corruption Eradication Commission uncovered an extensive luxury-cell racket orchestrated by the warden at Sukamiskin Penitentiary in Bandung, West Java, catering to high-profile figures such as Fahmi Darmawansyah, Setya Novanto and Muhammad Nazaruddin.
Then came the defining image of correctional impunity: Gayus Tambunan. In 2010, the former tax official was photographed wearing a wig in the stands at an international tennis tournament in Bali while nominally in detention. His case demonstrated that behind Indonesian prison walls, privilege can secure not just creature comforts, but the freedom to bypass detention altogether.
As early as 2011, Indonesia Corruption Watch mapped out five systemic vectors of prison graft: preferential amenities, unauthorized leave, remission tampering, extortion of inmates' families and the use of substitute inmates to serve sentences on behalf of wealthy convicts. What the Ombudsman exposed in Cibinong mirrors those decade-old findings almost point for point.
The foundational question is no longer what is happening, but why the system remains incapable of preventing it, even after President Prabowo Subianto formed a ministry dedicated to deal with the issue in 2024. The law may appear egalitarian in the courtroom, but if money and influence continue to command VIP treatment behind prison walls, the constitutional promise of equality before the law remains elusive.
