How Indonesian Tourism Development Will Bounce Back

How Indonesian Tourism Development Will Bounce Back

  • InCorp Editorial Team
  • 16 November 2022
  • 5 minute reading time

Together with the government of Fiji, the Indonesian Ministry of Tourism and Creative Economy aim to develop a robust, sustainable tourism sector that will strengthen the regional economy and provide new jobs.

Faiyaz Siddiq Koya, the minister for tourism and the Fiji Islands, and Sandiaga Salahuddin Uno, the minister of tourism and creative economy for Indonesia, signed an MOU to start their collaboration.

The agreement would promote bilateral cooperation in tourism promotion, product development, private-sector partnership, and human resource development.

The deal will also encourage research and development for both nations’ welfare and. focus on the revival of the tourism industry. According to Sandiaga Uno, his ministry is still pushing for the creation variety of tourist destinations.

The ministry focuses on locals taking the lead in tourism-related activities through initiatives that engage the younger generation and utilize funding from government agencies and non-governmental organizations.

An Inclusive Tourism Industry

To mobilize and develop natural and cultural resources and all members of tourism village communities, the Ministry of Tourism and Creative Economy also offers mentoring programs with all community members.

The minister explained how the pandemic’s uncertainty in the tourism industry had pushed it and the creative economy to change the development model to one that prioritized sustainability business in Indonesia across the board.

The four key pillars the ministry devised for the realization are environmental sustainability, the economy’s long-term sustainability, and the culture’s sustainability. Uno believed that tourism villages significantly impacted achieving the four pillars.

Facilitating Sustainable Tourism Planning and Development in Indonesia

At its second meeting in Bali, the G20 Tourism Working Group (TWG) reviewed topics on developing local communities and micro, small, and medium enterprises (MSMEs) as drivers of the creative sector and tourism transformation.

Concerning these problems, economic recovery will be oriented on the community and is anticipated to enhance the local economy. The event took place last month as part of Indonesia’s G20 Presidency.

During the same time, Food, Hotel & Tourism Bali (FHTB) 2022 – the most significant international trade exhibition in the hospitality and F&B sector in Eastern Indonesia also took place.

In addition to providing an avenue for stakeholders to meet, attendees to the show can also get insights from professionals in the F&B, hospitality, and tourism sectors through Industry Seminars.

The needs of market participants, such as hotel owners, club owners, restaurant owners, tour operators, distributors, and retail and wholesale firms, are rising due to the ever-evolving preference of the Indonesian tourism market.

The expansion of the tourism business in Indonesia will be impacted by the growing requirement to satisfy market tastes.

How Indonesian Tourism Development Will Bounce Back

The New Dawn of Indonesia’s Tourism Industry

The PPPA Minister spoke with female tourism industry members in The Nusa Dua Area on Thursday as part of a series of ancillary activities.

The dialog facilitates conversation on women’s roles in the workplace, dealing with the pandemic in the tourism industry, women and the constraints of cultural norms, and other topics relating to women in the workplace.

Female participants in the tourism business, such as hotel staff, members of the beach traders association (paguyuban pedagang pantai), and ITDC personnel, attended this discussion.

The Minister of PPPA highlighted that gender equality, or an equal position between men and women, especially in economic participation, has been stipulated by the Indonesian constitution, namely the 1945 Constitution, in his discussions with stakeholders in the tourism business.

In addition to contributions to the workforce, the PPPA Minister underlined the value of giving women a chance to advance to leadership positions. He claims that women may make significant contributions to economic resilience, including in the tourism industry.

In addition to being more gender-inclusive, sustainability also plays an essential role in reviving tourism in the region. The convenience of tourists and the developer community is frequently given more priority in tourism development.

Unfortunately, this could endanger the environment. The tourism sector can contribute to environmental issues if unregulated significantly.

Maintaining the background and using as few natural resources as possible is related to sustainable tourism development. This includes encouraging ecotourism, refraining from actions that endanger wildlife or harm the environment, and reducing greenhouse gas emissions, water use, and fossil fuel consumption.

Additionally, the growth of sustainable tourism is suited for preserving regional culture, minimizing congestion, significantly boosting the local economy, and supporting nearby emerging regions and small companies.

Indonesia, Haven for Tourism Investment

Indonesia’s ranking on the travel and tourist development index has increased, remarked the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. Indonesia now occupies position 44, up from position 32 previously.

This improvement in score marks the first time that Indonesia has surpassed Malaysia and Thailand. He expects that Indonesia will be better positioned to attract more investment and grow its capital by taking this position.

Luhut requested that Bahlil Lahadalia, the investment minister, and the regional leaders encourage ways to hasten the implementation of investments in the regions. This includes encouraging investment in the tourism sector and offering incentives to investors.

At the Wisma Duta of the Indonesian Embassy in Khartoum, the Embassy of Indonesia hosted a business gathering with 15 renowned Sudanese travel agents and entrepreneurs.

In his remarks, Ambassador Sunarko noted that following the COVID-19 outbreak, the Indonesian government had resumed widespread international tourist trips. The Indonesian government is making an effort here, particularly in measures to revive the economy.

He also emphasized the focus on new tourist spots, dispersed throughout several Indonesian islands, and are predicted to be among Indonesia’s top tourist attractions. These includes Lake Toba, Borobudur, Labuan Bajo, Mandalika, and Likupang.

Incorp Indonesia (formerly Cekindo) can assist you in obtaining a business license in Indonesia to expedite the process of capitalizing on the local tourism industry.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

Lead Form

Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.