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.

Latest News

May 20, 2026

There is renewed hope for police reform following President Prabowo Subianto’s approval of the police reform committee’s recommendations. Although several points merely preserve the status quo, the recommendations also call for more substantive action, particularly a revision of the 2002 National Police Law.

On May 5, the President approved the six-point reform recommendations proposed by the police reform committee. This marks an important milestone following his long-awaited pledge to reform the National Police, coming shortly after the committee completed its work in early March.

Of the six recommendations, two largely maintain existing arrangements. First, the National Police will remain an institution directly under the president rather than being moved under a ministry. Second, the appointment of the National Police chief will continue through the confirmation hearing mechanism in the House of Representatives.

The third recommendation is more consequential. It seeks to strengthen the National Police Commission (Kompolnas), the government-sanctioned oversight body, by granting it broader authority to hold officers accountable and by removing ex officio seats for government officials. Kompolnas needs to be institutionally strengthened so that it possesses investigative authority and the capacity to issue binding recommendations. At present, the body can only provide non-binding advice to the president, which limits its effectiveness as an accountability mechanism.

Committee chair Jimly Asshiddiqie argued that the National Police’s direct accountability to the president must be balanced by strengthening Kompolnas as an independent institution. This reflects a fundamental governance principle: concentrated executive authority requires equally robust oversight to prevent the abuse of power and ensure democratic accountability.

The fourth recommendation is equally essential because it directly affects the public: the demilitarization of the National Police’s work culture. Demilitarization involves more than just reducing the excessive use of force; it requires transforming organizational culture, command structures and public engagement strategies. The goal is to ensure policing becomes more civilian-oriented and rights-based.

The fifth recommendation concerns tighter regulations governing the placement of police officers in civilian posts, such as ministries and state agencies. This issue has long been debated because the expansion of police influence into civilian institutions risks blurring the boundaries between security functions and civilian governance. Stronger limitations are necessary to preserve democratic checks and balances.

Finally, the sixth recommendation proposes eliminating the “special quota” pathway in police recruitment. This reform is significant because recruitment systems shape the long-term integrity of the institution. Privileged pathways often perpetuate patronage networks, systems where power is used to benefit specific groups and undermine meritocracy. A more transparent system would improve institutional credibility and reduce opportunities for favoritism.

Taken together, these recommendations require serious political commitment to be effective. The House has stated its readiness to discuss revisions to the National Police Law, as the bill is already included in this year’s National Legislative Program (Prolegnas) priority list. Lawmakers have noted that the committee’s findings will serve as the foundation for these upcoming deliberations.

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