ER
THE MINISTRY of Tourism is intensifying efforts to distribute tourism investment more evenly across Indonesia—particularly outside Jakarta and Bali—to broaden the sector’s economic benefits through job creation, business development, and improved community welfare.
Speaking at the “Monthly Economic Diplomatic Breakfast” forum hosted by the Indonesian Chamber of Commerce and Industry (KADIN) at the Ministry of Tourism’s Sapta Pesona Building on Friday (September 10, 2026), Tourism Minister Widiyanti Putri Wardhana noted that Indonesia’s realized tourism investment reached a record high of IDR73.56 trillion in 2025.
“Currently, approximately 76.5% of tourism investment is concentrated in Jakarta and Bali, with 75% of that dedicated to hotel and restaurant development. Therefore, we are now diversifying investment into other priority destinations beyond Bali and Jakarta,” Widiyanti said.
This situation indicates significant room for expanding tourism investment, both geographically and in terms of business variety. Consequently, the government is actively inviting foreign investors and international partners—with the support of KADIN Indonesia—to channel investment into 13 Priority Destinations and 10 Tourism Special Economic Zones (SEZs).
Investments are also being directed toward sectors beyond hotels and restaurants, specifically accessibility-supporting infrastructure—such as cruise ship marinas—and the development of new tourist attractions. This diversification is expected to foster a more robust tourism ecosystem while creating greater economic opportunities for the regions.
“The government offers various facilities and incentives, ranging from income tax reductions (tax allowances) and incentives for labor-intensive industries to import duty exemptions for tourism equipment and yachts,” she stated.
Widiyanti added that opportunities for more equitable investment distribution are growing as traveler patterns shift, moving away from a sole focus on Java and Bali. A number of destinations outside that area showed strong visitor growth in early 2026.
Tourist visits to Lake Toba, for instance, grew by over 106%, while Lombok–Gili Tramena saw a 72.1% increase. Labuan Bajo also continued to demonstrate visitor growth and has emerged as a destination with promising prospects for tourism investment development.
“The government ensures that these key tourism areas are safe and ready to welcome visitors amidst recovery efforts following the disaster in the Flores region,” Widiyanti underlined.
According to the Minister of Tourism, this progress is underpinned by the national tourism economy’s performance, which continues to show a positive trend. Tourism’s contribution to Gross Domestic Product (GDP) rose from IDR729.1 trillion in 2022 to IDR1.14 quadrillion in 2025, with a target of reaching IDR1.19 quadrillion by the end of 2026.
“This positive growth serves as a major asset for the Ministry of Tourism—together with strategic partners, including KADIN Indonesia and international partners—to continue synergizing and strengthening tourism as a key driver of national economic growth, opening investment opportunities, and stimulating businesses and job creation across various regions,” she stated.
Meanwhile, Singapore’s Ambassador to Indonesia, Kwok Fook Seng, views this forum as a means to foster cooperation not only at the government-to-government (G-to-G) level but also by encouraging collaboration within the private sector.
He noted that Singapore and Indonesia share a long track record of cooperation in strengthening the tourism sector, citing the example of Singapore Airlines, which connects 18 locations in Indonesia to Singapore.
“This increased connectivity has driven tourist traffic. It all started on a small scale before eventually expanding,” said Ambassador Kwok Fook Seng.
With the presence of KADIN, there are many business players possessing exceptional experience, capabilities, and expertise. Therefore, it is crucial for the government to encourage investors to explore these locations, consider various possibilities, and assist in their development.
“I believe the government’s true role lies in building an ecosystem that enables the private sector to succeed,” he noted.
Similarly, the Italian Ambassador to Indonesia, Roberto Colaminè, highlighted the importance of developing non-physical infrastructure—specifically service infrastructure and other amenities required by tourists.
He cited Indonesia’s immense potential for marine tourism as an example, noting the need for supporting infrastructure such as beachside health posts accessible via direct payment or insurance schemes. He also pointed to the availability of hyperbaric chambers as a crucial element in promoting Indonesia’s diving destinations.
“Furthermore, in the management of culture-based tourism—such as at Borobudur Temple—it is crucial to maintain a perfect balance between site preservation, environmental protection, and tourist comfort,” said Ambassador Roberto.
Meanwhile, James Riady, Vice Chairman for International Relations at the Indonesian Chamber of Commerce and Industry (KADIN Indonesia), noted that amidst economic growth facing pressure, tourism has emerged as a sector experiencing significant expansion. Consequently, it is entirely appropriate for President Prabowo Subianto and the Ministry of Tourism to prioritize this sector in current development efforts.
“Indonesia’s tourism is unique; we do not need to invest in creating the assets first, as we already possess beaches, oceans, diving sites, forests, culture, and more. The challenge, however, lies in transforming this potential into tangible outcomes: tourist arrival numbers, length of stay, spending, investment, job creation, and repeat visits. It is no longer a matter of potential, but of conversion,” he stated.
James hopes that this event will serve as a strategic forum for the government and KADIN to further explore ideas and collaborative opportunities with partners from friendly nations, thereby expanding the economic benefits of the tourism sector.
“Another distinct characteristic of tourism is its ability to impact the community rapidly. Every investment creates jobs. That is why we believe tourism deserves a much larger share of Indonesia’s growth strategy,” James Riady affirmed.
The “Monthly Economic Diplomatic Breakfast” is a regular monthly forum organized by KADIN Indonesia in collaboration with ambassadors and representatives from friendly nations. The forum serves as a platform for economic diplomacy to strengthen trade and investment cooperation between Indonesia and its partner countries.
It also acts as a communication bridge between the government, the business community, and the diplomatic corps, facilitating the sharing of economic policy directions and the exploration of investment opportunities that can be developed in Indonesia, including within the tourism sector. [traveltext.id]
