Home Blog Unlocking Banyuwangi’s Investment Prospects: Reasons to Invest Now Business Licenses | Investor KITAS Unlocking Banyuwangi’s Investment Prospects: Reasons to Invest Now InCorp Editorial Team 28 June 2023 5 minutes reading time Table of Contents Banyuwangi and its economic potential Key sectors with potential for investment Reasons to invest in Banyuwangi Risks and challenges Conclusion Nestled at the far eastern end of Java Island, Banyuwangi offers a wealth of untapped opportunities to explore. While overshadowed by the limelight of larger cities, Banyuwangi boasts a thriving economy, rich natural resources, and a strategic location that positions it as a gateway to endless possibilities. This article explores Banyuwangi’s investment prospects, offering growth, prosperity, and an opportunity to be part of an extraordinary journey in one of Indonesia’s promising regions. Banyuwangi and its economic potential The Minister of Tourism and Creative Economy, Sandiaga Salahuddin Uno, is hopeful that Banyuwangi Regency in East Java can contribute to national tourism and creative economy targets for 2023. Sandiaga increased targets for the tourism sector and creative economy in 2023, emphasizing Banyuwangi’s potential as an international destination for world-class events. With a focus on attracting domestic and international tourists, Sandiaga stressed the need to enhance Banyuwangi’s competitiveness by developing a creative economy and offering value-added products. To boost Banyuwangi’s tourism and creative economy, the Ministry of Tourism and Creative Economy is actively backing the region through diverse programs and initiatives. The objective is to generate employment opportunities and enhance the overall welfare of the local community. By doing so, Banyuwangi can unleash its complete economic prowess and realize its true potential. Read more: Business Investment in Semarang: Which Sector Has Great Potential for 2023? Key sectors with potential for investment The following highlights the key sectors and explains why Banyuwangi is an attractive destination for prospective investors. 1. Tourism As mentioned above, one of the key sectors that are susceptible to growth is the tourism sector. The Banyuwangi Regency Government plans to re-optimize the untapped tourism potential in Banyuwangi, East Java, to boost tourism in the area. The high number of tourist visits during the 2023 Christmas and New Year holidays has resulted in a significant circulation of money, estimated at around IDR 25 billion, throughout Banyuwangi. Popular tourist destinations such as Bangsring Underwater, Grand Watudodol Beach, and Cacalan Beach have experienced a substantial increase in visitors, with some destinations seeing a surge of 100-500% compared to regular days. Banyuwangi’s culinary delights are also something the Banyuwangi Regency Government aims to optimize, as it would further support tourism in Banyuwangi. 2. Banyuwangi Festival One of the ways that the Regency Government plans to draw in tourists is by organizing the Banyuwangi Festival (B-Fest) in 2023. This event is aimed to stimulate the local economy and support micro, small, and medium enterprises (MSMEs). B-Fest will feature 55 events, including the renowned Gandrung Sewu and Banyuwangi Ethno Carnival (BEC), included in the Christmas Event Nusantara (KEN) program of the Ministry of Tourism and Creative Economy. By including these events in the program, Banyuwangi not only reaps economic benefits such as amplified community income and prolonged tourist stays but also gains access to promotional support and assistance from the Ministry. To enhance the creative economy and improve economic turnover, Banyuwangi plans to extend the duration of certain events, such as the 6-day BEC. This approach aims to make visitors feel at home and contribute to a higher value of benefits for society. The Banyuwangi Festival aligns with the more extensive KEN program, which aims to promote creative economy MSMEs throughout Indonesia and revitalize the economic sector. 3. Infrastructure The Banyuwangi government acknowledges the importance of transparent and accountable management of the Regional Revenue and Expenditure Budget (APBD), which comes from the people themselves. The government utilizes the APBD to accelerate regional development, particularly by increasing regional income through sustainable economic sectors. The Banyuwangi government has effectively allocated the APBD for infrastructure development. The focus is strengthening basic infrastructure such as roads, irrigation systems and providing stable electricity throughout the region. The reason behind such acceleration is to improve the general welfare of the area. The infrastructure projects currently underway are the paving program and the Poncomoyo bridge construction. As both projects are still underway, this infrastructure is expected to aid the development of the community’s economy. The bridge, for example, provides greater access for tourists to reach Poncomoyo Beach. Read more: Exploring the Potential of Indonesia’s Tourism Industry Reasons to invest in Banyuwangi There are several reasons to invest in Banyuwangi, amongst others they include: Increased accessibility Banyuwangi is now equipped with more excellent transportation choices, including trains, ferries, busses, planes, online transportation, tour buses, and many more that allow for greater ease and accessibility. Improvement in public facilities Educational centers, health facilities, tourist attractions, and shopping centers have also supported the interest in the area. Affordable land There is ample vacant and fertile land in the regency that is available for use at an affordable price. Increased residential areas Banyuwangi receives subsidy quotas for housing and is an excellent place for property investment. Risks and challenges A hospitable investment and business climate are crucial to increase investment. Investments support economic growth, create competitiveness and generate greater welfare. Incentives are therefore provided to ease investments into the Banyuwangi region to increase income levels, absorb local labor, improve public services, and bring about a more significant benefit for Banyuwangi Regency. Conclusion In sum, Banyuwangi is a prospering region that receives significant support from the government. It welcomes investments in several ways and continues to do so with the assistance and aid it receives. Investors that wish to benefit from the infrastructure improvements and affordable land prices may seek help from InCorp Indonesia, especially in setting up a business. InCorp Indonesia provides extensive services regarding business licenses and KITAS matters to smoothen the investing process. Read Full Bio Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.