Indonesia Tourism SEZs: Explore Untapped Markets

Indonesia’s Tourism SEZs: A New Opportunity for Investors

  • InCorp Editorial Team
  • 13 October 2025
  • 4 minutes reading time

Indonesia’s tourism has long been dominated by a few well-known destinations like Bali, while many regions with equal or greater potential remain overlooked. The main barriers are limited infrastructure, complex regulations, and a lack of investor incentives. 

To address this, the government launched tourism special economic zones (SEZs) in targeted areas, offering tax breaks, streamlined permits, and infrastructure support to attract investment beyond the country’s traditional tourism hubs. 

This opportunity will allow investors to build hotels, offer travel services, develop wellness centers, and invest in tourism-related property in many of Indonesia’s most promising but undeveloped areas.

List of Indonesia’s Tourism SEZs 

Indonesia currently has several Tourism SEZs in operation or development. Each is strategically located in regions rich in natural and cultural assets but lacking in tourism infrastructure — making them ideal for early-stage investment. 

SEZ Name Location Focus Areas 
Mandalika Lombok, West Nusa Tenggara Sports & resort tourism 
Likupang North Sulawesi Marine & eco-tourism 
Sanur Bali Wellness and medical tourism 
Kura Kura Bali Smart tourism, sustainable development 
Batam & Bintan Riau Islands Cross-border and MICE tourism 
Lido West Java Entertainment and leisure 

Why Tourism SEZs in Indonesia are Attracting More Investment 

Indonesia’s tourism sector rebounded strongly in 2025, with international arrivals up 10% year-on-year and domestic tourism increasing by 19.3%, according to Statistics Indonesia (BPS). This growth underscores the urgency of expanding tourism infrastructure beyond overcrowded destinations. 

To support this, the government has positioned Tourism SEZs as a key tool for investment acceleration. 

Investor-Friendly Incentives in SEZs 

SEZs offer a competitive edge through: 

  • Tax holidays and VAT exemptions 
  • Import duty relief for capital goods 
  • 100% foreign ownership in designated sectors 
  • Streamlined licensing through one-stop services 

These incentives lower upfront costs, reduce legal friction, and allow faster project rollout.

Lower Investment Risks 

Tourism SEZs can benefit from: 

  • Government-funded infrastructure (roads, ports, water, energy) 
  • Regulatory certainty and cross-agency coordination 
  • Predictable cash flow in sectors like accommodation, dining, marine tourism, and events 

They also generate long-term employment, reinforcing their economic impact at both local and national levels. 

Untapped Industries to Explore in Indonesia’s Tourism SEZs 

Indonesia Tourism SEZs: Explore Untapped Markets

While SEZs provide land and incentives, their success depends on the growth of supporting businesses and services. Many of these are still missing, creating space for investors to build the ecosystem around the core tourism zone. 

Investors can tap into essential services that are often underdeveloped: 

  • Local Transport: Airport transfers, car rentals, eco-shuttles 
  • Food & Beverage: Restaurants, cafés, beach clubs, catering 
  • Tourism Logistics: Diving, hiking, culture-based experiences 
  • Retail & Wellness: Souvenir shops, spas, gyms, small convenience outlets 

These are everyday needs for visitors, and early investors can move in with low competition. 

How to Enter Indonesia’s Tourism SEZs Market 

Investors have two main options to enter SEZs: 

  • Open a company (PT or PMA) directly under SEZ regulations 
  • Partner with local businesses or MSMEs to co-develop services and share market access 

This flexibility supports both scalable investment and community involvement, enhancing long-term stability.

Guide to Doing Business in Bali & Lombok

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Unlock Indonesia’s Tourism SEZ Potential with InCorp 

Entering a Tourism SEZ requires more than vision — it demands local knowledge, regulatory expertise, and operational support. InCorp Indonesia (an Ascentium Company) provides end-to-end assistance for foreign and domestic investors, including: 

Whether you’re launching a resort, transport service, restaurant group, or event platform, InCorp ensures your investment is set up for success — legally, strategically, and sustainably. 

Start your investment journey in Indonesia’s tourism SEZs by completing the form below.

Frequently Asked Questions

What is a Tourism SEZ in Indonesia?

A Tourism SEZ (Special Economic Zone) is a government-designated area offering tax breaks, infrastructure support, and easier permits to boost tourism investment outside Bali and other crowded destinations.

What benefits do investors get in Tourism SEZs?

Investors enjoy tax holidays, import duty relief, full foreign ownership rights, and faster licensing through one-stop services — making it easier and cheaper to build tourism businesses.

Where are the top Tourism SEZs located in Indonesia?

Key zones include Mandalika (Lombok), Sanur & Kura Kura (Bali), Likupang (North Sulawesi), Lido (West Java), and Batam & Bintan (Riau Islands) — each with unique tourism focus areas.

What kind of tourism businesses can I build in Indonesia SEZs?

You can invest in hotels, travel agencies, medical and wellness centers, beach clubs, transport services, retail shops, and more — especially in underdeveloped but high-potential regions.

How do I start investing in a Tourism SEZ?

You can register a local or foreign-owned company (PT or PT PMA) under SEZ regulations or partner with local businesses. InCorp Indonesia can help with company setup, licenses, tax, and HR.

Verified by

Ales Cina

Consulting Manager at InCorp Indonesia

Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in... Read more

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