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
East Java Governor Khofifah Indar Parawansa conveyed East Java's readiness to be a friendly host for investment, which she noted has been proven by the provision of ease of investment facilities, while accompanying President Prabowo Subianto to inaugurate PT Freeport Indonesia (PTFI)'s precious metal refinery (PMR) in the Java Integrated Industrial and Port Estate (JIIPE), Gresik Regency, East Java on Mar. 17, 2025.
The inauguration was marked by the laying of a gold miniature and the signing of an inscription by Prabowo. He was also accompanied by Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia and State-Owned Enterprises Minister Erick Tohir.
"We are trying to improve partnerships between investment-supporting business communities, conduct integrated investment promotions, prepare Investment Project Ready to Offer (IPRO) in the industrial, infrastructure, tourism, and property fields, and use the 'JOSS Gandos' [or] Jatim Online Single Submission application to improve the quality of permitting services," she explained.
Realized investments to East Java increased by 1.5 percent year-on-year (yoy) for the January to December 2024 period. Domestic investments to East Java surged by 23.3 percent, but foreign investments dropped by 21.8 percent. East Java contributed to 7.9 percent to Indonesia's total investment realization for the fourth quarter (Q4) of 2024. That achievement placed East Java only behind West Java and Jakarta Special Capital Region (DKI) for investment realization.
"Alhamdulillah, this achievement places East Java in third place nationally," said Khofifah.
Meanwhile, Prabowo specifically requested that East Java to become a friendly host for investors, and be able to maintain a good investment climate.
"Thank you, Madam Governor, East Java is indeed extraordinary, every month there are new factories, new buildings." He concluded.