INDONESIA’S Tourism and Creative Economy Minister Sandiaga Salahuddin Uno on Wednesday (06/05), 2024 highlighted that Indonesia needs more investment in the tourism sector and sustainable tourism.

At the 2024 Tourism Investment International Forum in Jakarta, he noted that Indonesia’s tourism sector recorded US$3.604 billion in investment in 2023. But Indonesia needs an investment of more than US$15 to 20 billion to support sustainable tourism.

“We see that there is a demand from the market side, which continues to develop towards sustainable tourism, where we need very large investments. However, 80% of the investment was concentrated in star-rated hotels, restaurants, cafes, and fitness centers. Meanwhile, the realization of investment in the tourism sector in the first quarter of 2024 reached US$943.40 million of the target of US$3 billion,” he said.

The three business sectors that received the most foreign direct investment (FDI) during the first quarter were star-rated hotels, restaurants, and apartment hotels.

“We need more investment in the ecosystem, including the development of sustainable tourism products and inclusive community-based tourism,” he said.

The minister informed that Indonesia needs more than US$15 billion to US$20 billion in investment to support the realization of sustainable tourism in the country.

However, for Indonesia’s sustainable tourism wants eco-friendly hotels and expects eco-friendly tourism practices. Last year’s 3 billion investments in tourism were mostly in conventional hotels, whereas we want to direct it more towards green tourism, tourism that is more environmentally friendly and also has a regenerative concept.

The Minister of Tourism and Creative Economy explained that regenerative tourism focuses on the restoration and regeneration of the environment and local communities. The main goal is to make a tourist destination better than its initial condition.

Sandiaga expressed optimism that the Tourism Investment International Forum, held on June 5–6, 2024, will attract more investors from within and outside the country to invest in Indonesia’s tourism sector, not only hotels, restaurants, and cafes, but also supporting infrastructure for tourism.

Indonesia has been recognized as the best Muslim-friendly tourist destination in the world by the Global Muslim Travel Index (GMTI) in 2023 and 2024. Its position in the Tourism Development Index also rose significantly in 2024 from 32nd to 22nd.

“We believe that we will be able to score three times more investment in these sectors,” the minister conclude. []