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

April 9, 2026

Three weeks after the acid attack on Commission for the Disappeared and Victims of Violence (Kontras) activist Andrie Yunus, investigators have yet to clearly identify who bears ultimate responsibility. What has drawn particular attention is the resignation of the chief of the Strategic Intelligence Agency (BAIS), framed by the Indonesian Military (TNI) as a form of institutional accountability. Yet, this raises the critical question of whether the move reflects genuine responsibility-taking by the state or signals deeper power struggles within the military.

On the evening of March 12, Andrie Yunus, an activist with Kontras, was attacked with acid while riding home in Central Jakarta. Earlier that day, he recorded a podcast discussing the military’s role in politics. The timing has sharpened concerns about possible links between his advocacy work and the assault.

As of April 1, Andrie remained in the high-care unit at Cipto Mangunkusumo General Hospital (RSCM). He is undergoing intensive treatment, particularly for his eyes, as residual acid exposure has complicated medical assessments and may result in permanent damage. Kontras has described his condition as critical.

President Prabowo Subianto has condemned the attack and pledged that investigators will pursue not only the perpetrators on the ground but also the “highest actors” behind it. He emphasized the need to uncover “who ordered and paid for” the crime and has floated the possibility of establishing an independent fact-finding team.

However, this firm stance unfolds within a layered historical context. As widely documented, Prabowo himself faced allegations of human rights abuses during his military career. While he was never tried in court, he was dismissed from the TNI in 1998 for insubordination. This juxtaposition, between past controversies and present commitments to justice, adds a layer of political complexity to the case.

On March 25, TNI spokesperson Maj. Gen. Aulia Dwi Nasrullah announced that the chief of BAIS, Lt. Gen. Yudi Abrimantyo, no longer held that position. This followed the arrest of four officers, two from the Navy and two from the Air Force, who were assigned to BAIS and are allegedly involved in the attack.

Yet, the spokesperson did not clarify whether Yudi’s removal was linked to command responsibility, internal disciplinary measures or broader institutional considerations. The ambiguity surrounding his exit has fueled speculation about the true motives behind the move.

The TNI’s response warrants closer scrutiny. Rather than being seen as a definitive act of accountability, the dismissal of the BAIS chief has been interpreted by some observers as insufficient and potentially deflective. This concern emerges against the backdrop of the military’s expanding role in civilian domains and state-linked economic activities under the current administration. Such an expansion has renewed long-standing debates over military influence in non-defense sectors.

Nicky Fahrizal, a researcher at the Centre for Strategic and International Studies (CSIS), noted that the case appears rooted in internal TNI dynamics, raising concerns over possible abuses of authority. While investigations are ongoing, the involvement of intelligence-linked personnel has intensified scrutiny of internal control mechanisms.

Civil society organizations have warned that the leadership change risks functioning as a form of cuci tangan (washing of hands), a symbolic gesture that falls short of addressing responsibility at higher levels of command. Muhammad Isnur, chair of the Indonesian Legal Aid Foundation (YLBHI), argued that the resignation may obscure accountability at higher levels, including command responsibility extending to TNI leadership and even civilian authorities, particularly the defense minister. This critique shifts the focus from individual perpetrators to the broader chain of command.

At the apex of Indonesia’s military hierarchy are the TNI commander, Gen. Agus Subiyanto, and Defense Minister Sjafrie Sjamsoeddin. The commander holds ultimate operational authority, overseeing all branches of the armed forces and strategic institutions such as BAIS. Meanwhile, the defense minister is responsible for civilian oversight, including defense policy and institutional governance.

However, this formal structure is shaped by overlapping institutional backgrounds. Both Prabowo and Sjafrie are former senior military figures, creating a leadership environment closely intertwined with the TNI. This convergence produces a highly interconnected system in which military intelligence, command authority and political leadership meet at the top, making decisions such as the removal of the BAIS chief not merely administrative, but embedded within broader dynamics of power, loyalty and control.

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