Tourism Investment in Indonesia

Indonesia’s total realization of tourism investment continues to increase yearly, where foreign investment (FDI) value was USD 242.20 million in 2011, USD 768.30 million in 2012, USD 462.47 million in 2013, USD 511.81 million in 2014, USD 732.46 million in 2015, and USD 954.59 million in 2016.

The value of domestic investment (PMDN) was USD 39.40 million in 2011, USD 101.50 million in 2012, USD 140.18 million in 2013, USD 173.08 million in 2014, USD 316.20 million in 2015 and USD 139.06 million in 2016.

Thus, Indonesia’s total tourism investment value was USD 281.60 million in 2011, USD 869.80 million in 2012, USD 602.65 million in 2013, USD 648.80 million in 2014, USD 1048.66 million in 2015, and USD 1093.65 million in 2016.

The realization value of Indonesia’s tourism investment in 2016 has increased by 1.04% compared to 2015. In general, this increase is partly due to the policy on lenient investment, namely; Ease of licensing through the launching of central PTSP; Three-hour investment permit service; Ease of direct investment construction (CLIK); as well as the revised Investment Negative List stipulated in Presidential Regulation No. 44 of 2016 concerning the List of Closed Business Sectors and Opened Business Sectors with Requirements in the Field of Investment.

Tourism Investment in Indonesia west papua

There are four tourism businesses that are reserved for Micro, Small, Medium Enterprises and Cooperatives (UMKMK), 15 tourism businesses open to PMA with condition, and 37 tourism businesses that are 100% open to PMA. The investment increase in the tourism sector west papua is also inseparable from the strong commitment of conducting investment development in the field of tourism as mandated by Government Regulation Number 50 Year 2011 on National Tourism Development Master Plan, with the support of related Ministries / Institutions, Local Governments and stakeholders, and the availability of competent human resources.

To support investment west papua  increase in the tourism sector in 2016, the Deputy of Tourism Destination and Tourism Development of the Ministry of Tourism and Creative Economy has mapped the potential locations for tourism investment to further promote investment and information dissemination, as well as business meetings with potential investors, both at home and abroad.

With the availability of information on tourism investment opportunities, it certainly can encourage the development of areas that have tourism potentials. This promotion activity on tourism investment started in 2012 for 3 locations, next were 4 locations in 2013, 6 locations in 2014, 55 locations in 16 regencies / cities by 2015, and 73 locations in 34 regencies / cities by 2016. This effort succeeded in attracting foreign and domestic investors to invest in tourism in Indonesia.

Various business meetings and investment events were conducted in 2016, among them: Gulf and Indian Ocean Hotel Investor’s Summit (GIOHIS) in Abu Dhabi 8 – 9 February 2016; Business Meeting in Hong Kong on 11-12 February 2016, which successfully brought Meridian Capital to Indonesia to sign the Terms of Reference, together with the Raja Ampat Regency Government west papua.

Next is the International Hotel Investment Forum (IHIF) in Berlin, Germany 7 – 9 March 2016; MIPIM (Lemarché international des professionnels de l’immobilier) in Cannes, France 15 – 18 March 2016; Business Meeting in Monaco, France, April 2016; Hospitality Investment Conference Indonesia (HICI) in Jakarta 28 – 29 April 2016; Marketing Investments Melbourne – Brisbane, Australia 9 -10 May 2016; Business Meeting in Seoul, South Korea 2 – 3 June 2016; and Tourism, Hotel Investment & Networking Conference (THINC) in Bali August 31 – September 1, 2016.