Tourism sector to be prioritized while promoting investment - Tourism Indonesia


Sunday, February 26, 2017

Tourism sector to be prioritized while promoting investment

The Indonesian government has realized that investing in the tourism industry is a means of stimulating growth over the long term and enabling the poor to share in the economic gains.
Indonesia has huge potentials in the tourism sector that has yet to be optimally tapped. The country is blessed with serene natural beauty, unique and rich culture and local traditions, and one of most mega-biodiverse regions in the world. 

The government has set a target to receive 15 million foreign tourists this year and 20 million by 2019. To achieve this goal, better infrastructure and facilities in the tourism industry are needed. 
Tourism Minister Arief Yahya and Chief of the Investment Coordinating Board (BKPM) Thomas Lembong delivered presentations on the countrys tourism potentials before some 400 investors attending the 2017 Regional Investment Forum (RIF) held in Nusa Dua, Bali, which is one of the worlds most famous tourist resort island, on Feb 23, 2017.

The tourism sector is the most inexpensive and easiest means for the government to boost economic growth and foreign exchange as well as create jobs, according to the minister.
Indonesias growth in the tourism sector in 2015 was far above that of the Association of Southeast Asian Nations (ASEAN) and also across the world, he noted.
"In general, Indonesias tourism sector grew by 10.3 percent, above the five percent growth recorded in the ASEAN and 4.4 percent in the world," he pointed out.

Meanwhile, the BKPM has promoted investment potentials in the tourism sector and its supporting infrastructure.
"The tourism sector and its supporting infrastructure, which is no less important, will become a priority to attract foreign and domestic investors," BKPM Chief Thomas Lembong stated after opening RIF 2017. 
The tourism sector is the new spearhead to boost investment for the Indonesian government, he noted.
Investment growth in the tourism sector reaches 18 percent annually, and hence, investors should capitalize on the growth, he remarked.
During the forum, representatives of the local administration and companies were scheduled to hold one-on-one meetings with potential investors.

The tourism sector has contributed Rp51.2 trillion, or around 2.2 percent, of the total investment realization over the past five years.

In 2016, domestic investment in the tourism sector was recorded at Rp2.2 trillion, while foreign investment reached Rp12.8 trillion, thereby totaling Rp15 trillion of investment in the tourism sector.
In fact, the BKPM has designed the Direct Construction Investment Service (KLIK) program for businessmen keen on investing in the tourism sector. 

KLIK is a mechanism that allows investors to begin construction even as the application process for building permits, environmental licenses, and other regional licenses is still underway.
"The BKPM has, so far, made intensive coordination with the Tourism Ministry, as several developments need to be carried out. So far, we have been more responsive," Lembong stated. 
Previously unknown regions in Indonesia have now started receiving tourists, hence adequate infrastructure facilities, such as hotels, are needed to support the tourism industry, he noted. 

He cited Manado in North Sulawesi as an example of a city experiencing a significant increase in tourist arrivals. Some 12 thousand Chinese tourists annually visited Manado, and now, the city receives 12 thousand Chinese visitors monthly.

The agency will offer the KLIK program to investors to build hotels in Manado and other regions, such as West Sumatra and Belitung.

Being relatively close to Thailand, Singapore, and Malaysia, as well as several Middle Eastern nations, West Sumatra and Belitung are potential tourist destinations, as compared to Bali and Lombok in West Nusa Tenggara.
Besides this, the government also plans to build an airport in North Bali, since the existing Ngurah Rai International Airport is quite crowded, and Bali remains the countrys main tourist destination.
The agency has launched 18 KLIK industrial zones in 16 districts and cities located in 10 provinces across Indonesia, bringing their total number to 32.

Most of the projects in the KLIK industrial zones are in the manufacturing sector.
The agency is expanding the coverage of the KLIK program to include the tourism and commercial sectors.

Synergy between the central government and local administrations in needed to speed up licensing services for the implementation of the program. 
Meanwhile, investment realization in Indonesia had reached Rp612.8 trillion in 2016, surpassing the set target of Rp594.8 trillion.
"The realization of investment from January to December 2016 had reached Rp612.8 trillion, increasing by 12.4 percent, as compared to Rp545.4 trillion in 2015," Azhar Lubis, the deputy for capital investment implementation control of BKPM, stated recently.

Lubis explained that the realization of domestic investment was recorded at Rp216.2 trillion, up 20.5 percent, while foreign investment realization reached Rp396.6 trillion, or an increase of 8.4 percent.

The upcoming visit of Saudi Arabian King Salman bin Abdulaziz Al-Saud, with his entourage of 1.5 thousand people, is a good opportunity for Indonesia to promote investment in the tourism sector. 
Minister Yahya had earlier informed the press that King Salmans agenda included a visit to Bali on Mar 4-9 for a private vacation after he concludes his state visit to Jakarta on Mar 3. 

"This is a golden opportunity for Indonesia to promote tourism. We are ready to launch big promotions," he added. 

Earlier, President Joko Widodo (Jokowi) had called on Saudi Arabia to realize the commitment and plans to invest in Indonesia.
"Just now, (the president) has sought the help of the chairman of the Saudi Arabian Majlis ash-Shura (Consultative Assembly) in realizing various Saudi Arabian investment plans and commitment in Indonesia," Deputy Foreign Affairs Minister A.M. Fachir stated recently after accompanying President Jokowi while receiving the Saudi official.


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