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

November 26, 2025

After nationwide protests swept the country in late August, the demand for institutional police reform rose to the top of the national agenda following an incident where an armored police vehicle struck and killed a civilian during the demonstrations. Just two months later, President Prabowo Subianto responded by establishing the National Police Reform Acceleration Commission.

The new body consists of 10 individuals from diverse backgrounds that include notable Indonesian legal figures, namely former Constitutional Court chief justice Jimly Asshiddiqie, Coordinating Law, Human Rights, and Immigration and Correctional Services Minister Yusril Ihza Mahendra, and legal expert and politician Mahfud MD.

However, the body also includes National Police chief Gen. Listyo Sigit Prabowo and his three predecessors, Idham Aziz, Home Minister Tito Karnavian, and Badrodin Haiti. This has cast doubt on whether substantive changes can be achieved. Indonesian Legal Aid Foundation (YLBHI) Muhamad Isnur said that the presence of sitting and former police chiefs undermines public trust in the commission. "These are people who once led the police force and yet failed to implement many reforms," Isnur noted.

Reforming law enforcement institutions in Indonesia has always been a double-edged sword. Legally, the National Police is directly under the executive branch's jurisdiction, granting Prabowo authority to mandate changes. In practice, direct intervention carries repercussions that could destabilize his political capital.

Both the National Police and the Indonesian Military (TNI) have maintained a tradition of political involvement since the nation's inception. During the 2024 presidential election, reports from Tempo alleged that the police played an active role in securing the win for the Prabowo-Gibran Rakabuming Raka ticket, a claim both parties rejected.

Regardless, directly confronting the institution now could pose significant risks for the President ahead of the next election cycle. Curtailing police powers inevitably invites intense counter-lobbying and necessitates compromises, the inclusion of police chiefs in the reform team as an example, to ensure the institution does not lose its foothold in the national political sphere.

For the TNI, having a former army general as President has helped them maintain their standing amid the public's growing discontent with law enforcement. When journalists presented Prabowo with a list of demands in the aftermath of the August protests, he welcomed most reforms as "logical" while explicitly singling out changes to the military as "debatable".

More recently on Nov. 14, the Constitutional Court issued a ruling prohibiting active-duty police officers from holding concurrent civilian posts. Officers must now retire before assuming civilian roles in government or leadership positions in state-owned enterprises. According to official police data, over 300 active police officers currently hold such posts.

Among them are Corruption Eradication Commission (KPK) Chair Comr. Gen. Setyo Budyanto and National Narcotics Agency (BNN) Chair Comr. Gen. Suyudi Aryo Seto. Several high-ranking officers are also attached to the National Nutrition Agency (BGN), which oversees Prabowo's flagship free nutritious meal program that got an allocated budget of Rp 71 trillion (US$4.2 billion) this year and projected to rise to Rp 335 trillion in 2026.

Two members of the reform committee have released statements that appear to undermine the court's ruling. Coordinating Law, Human Rights, and Immigration and Correctional Services Deputy Minister Otto Hasibuan stated that the court's decision would be treated merely as "advisory input" for the police reform team. Activists strongly dispute this; Constitutional Court rulings are final and binding, taking effect immediately upon their delivery rather than serving as suggestions.

Furthermore, Law Minister Supratman Andi Agtas claimed that officers currently occupying civilian posts are exempt as they were appointed prior to the decision. While Constitutional Court rulings are generally prospective, applying to future cases, constitutional law expert Zainal Arifin Mochtar argued that such rulings "are not absolute, especially regarding ongoing implications". Commission head Jimly Asshiddiqie has also affirmed that the court's ruling is "final and binding".

While Prabowo has made efforts to listen to civil society demands, it remains to be seen just how far he is willing to go to overhaul an institution that wields such immense political influence, and to a certain extent he owes to.

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