TOURISM

Ecotourism GOVERNMENT PROVISIONS

Indonesia offers great options for ecotourism destinations as AND SUPPORTS
presented in the following map:
Ÿ Around 10 % of IDR 4,012
trillion from the state budget
Source: Dr. Sapta Nirwana
is allocated to develop basic
Vice Minister Ministry of Tourism Republic of Indonesia. tourism infrastructure.
Ecotourism in Indonesia Presentation, 2014
SABANG
Ÿ Training programs in tourism
DANAU TOBA
DERAWAN and hospitality business are
BUNAKEN backed up by government
RAJA AMPAT
support.

TORAJA Ÿ Investments up to 100% foreign

TANJUNG PUTING
ownership for hotel management
KOTA TUA JAKARTA WAKATOBI
and operators are allowed, while
BROMO-TENGGER-SEMERU
BATUR BALI KOMODO-KELIMUTU-FLORES
forleisure ac vi es, foreign ownership
PANGANDARAN
BOROBUDUR
RINJANI
is allowed up to 70%.
JAVA PROMO

Advantages: Current and Future Indonesia Investment One Stop Service (OSS)
Ÿ The corporate landscape Center and Marketing Officer
Indonesia already hosts dynamic clusters of foreign and domestic
Indonesian President, Joko Widodo, officially launched the Integrated
players including world-known hotel operators/management
One Stop Service Centre (PTSP) at Indonesia Investment Coordinating
companies, franchise/retail brands and property developers that
Board (BKPM) in early January 2015. This service aims to smoothen and
operate in the tourism industry.
simplify licensing procedures for investment projects. From now
on, investors will not need to visit various ministries or government
Ÿ With an increasing number of skilled labour, Indonesia offers the
agencies to obtain necessary permits but can simply turn to the BKPM's
2nd most efficient operating costs in the ASEAN region.
OSS centre. In addition, currently the BKPM has established what so
How do labour costs in tourism compare?
called Marketing Officers (MO) who will take care any investment interest
The chart below presents an analysis of the average total labour
to explore investment opportunities in the country. The contact of MO is
costs for a hotel employing 50 staff 3 in Indonesia and four other
Directorate of Sector Promotion, BKPM (Phone: [62-21] 525-2008 Ext:
emerging markets in SouthEast Asia.
3568, Fax: [62-21] 5288-0390, Email: info@bkpm.go.id).
Based on a hotel with a headcount of 50, comprising of: 11 waiters/waitresses, 6
cleaners, 6 porters, 5 receptionists, 4 cooks, 2 facilities specialists, 2 telephone
operators, 2 gardeners, 2 security guards and 1 of each of the following: accountant, Local Partner
catering assistant, catering manager, chef, cook supervisor, hotel manager, hotel
A host of organizations supporting Indonesia’s tourism sectors are
supervisor, housekeeper, security officer and IT support officer.
growing in prominence, as are academic centres of excellence.
INVESTMENT

Indonesia has the 2nd lowest

operating costs at US$ 263,357
per annum.
Therefore , it is 18% lower than
the study average of US$
321,345 per annum.

Jl. Gatot Subroto No. 44

Indonesia Tourism Industry Board Jakarta 12190, PO. Box 3186
Gabungan Industri Pariwisata Indonesia Indonesia.

p. +6221 5292 1334

f. +6221 5264 211
www.bkpm.go.id
e. :info@bkpm.go.id www.bkpm.go.id
TOURISM
INVESTMENT
Indonesia tourism industry: The Push Factor
As one of the best tourism des na ons in the region, Indonesia offers:
Ÿ
Ÿ
Ÿ
Ÿ
Diverse op ons for travelers;
Excellent natural resources;
Rich cultural experiences;
Best value for tourism
17,508
Increasing number of foreign and domes c tourists
Ÿ Between 2009 and 2013, the number of foreign visitors has seen a
steady yet moderate increase at a CAGR of 18.12%, contribu ng to
Growing middle income group island the total foreign tourist expenditure of just over US$ 10 billion in
This group has a racted the expansion of 2013.
low cost carrier capacity within Southeast
Asia. Ÿ While Ministry of Tourism expects to receive up to 9.5 million

W
hen it comes to an abundance of natural resources from foreign visitors by the end of 2014, this rate essen ally corresponds
the world's largest and greenest archipelago that is rich in with the 9% growth in the 2012 - 2013 period.
biodiversity and a home of mul -cultural people, Opening more acces
Indonesia would sum up as an ideal tourism getaway. Ÿ With more than 17,000 islands in the Ÿ By the end of 2013, domes c tourism accounted for as many as
With strong government support, rising domes c disposable income, archipelago, the best way to connect to 250,000 trips at 6% “CAGR”. Subsequently, expenditures by
and increasing number of hotels and airport developments, topped some of the exo c tourism des na ons is by domes c tourists also increased, reaching US$ 16 billion.
with expanding air transport networks, the Indonesian tourism cruise tourism. Ÿ Such upward movement reflects the posi ve effects of the
industry offers great opportuni es for investment. Ÿ Cruise tourism provides access to many remote and exo c islands
throughout the archipelago. domes c economy.
Ÿ The Ministry of Touris has commi ed to establish 320 ports of call in
2014, and thus targe ng a total of 500,000 passengers by the end of Number of foreign visitors (2008 – 2013)
2015. Therefore, 15 harbors as cruise ports are being developed 10000000 Foreign visitors (thousand) 12000
throughout Indonesia. Total expenditure (USD million) 10,054.15
9,120.89
WHY INDONESIA? Source: Ministry of Transport (2014), Sta s cs Indonesia (2014), HVS (2014) 8000000 7,603.45
8,554.39 10000
Ÿ Indonesia is an emerging global powerhouse in Asia. With the GDP 7,347.60 6,297.99 8000
expected to reach US$ 1 trillion in 2014, Indonesia is the largest 6000000
economy in Southeast Asia. Much less affected by the global 6000
financial crisis compared to its neighboring countries, Indonesia's Growth in interna onal arrivals, by air transport 4000000
economy grew around 5.5% in 2013, making it “The World's Most 4000
Stable Economy in the Last Five Years” according to The Economist International tourists to Indonesia grew at 35.7% CAGR1 between
2000000
magazine. 2008 and 20122. Tourists from Asia Pacific and Europe accounted for 2000
Ÿ Having a healthy tourism industry, Indonesia welcomed 8.8 million 82% of international arrivals in 2013.
0 0
foreign visitors arrivals in 2013.
Ÿ The growth of affordable air travel in the region provides significant 1
CAGR: Compound Average Annual Growth Rate; 22012: Estimated figure; 2008 2009 2010 2011 2012 2013
incen ves for consumers to travel intercity or interna onally, for Source: Statistics Indonesia, 2014
Asia Pacific
Source: Sta s cs Indonesia, 2014
both business and leisure. and Europe
Number of domestic visitors (2009 –2013)

85
% Domestic visitors (thousand) 15,713.64 16,029.09
250000 18000
MARKET OPPORTUNITIES Total expenditure (USD million)
16000
Hotel Investment in The Last 5 Years 245000
Foreign Direct Investment of tourism sector in hotel & restaurant 2013
14,626.36
14000
reached US$ 513,1 million in 2014, an increase of 10.94% compared to 240000 13,673.64 12000
its previous year. Increase also occurred in the realiza on of Domes c 12,537.27
10000
Direct Investment where in 2014 its realiza on was US$ 133.1 million, 235000
an increase of 23,46% compared to its previous year. 8000
230000 6000

Hotel Market 4000

225000
Between 2009 and 2013, the number of 5-star establishments in 2000
Indonesia grew at 9% CAGR, from 1,240 to 1,778 hotels respec vely. The 220000 0
top 11 major provinces such as those in Java and Bali saw the most 2009 2010 2011 2012 2013
development of hotels in the past five years. Developments of hotels are
also seen in the secondary provinces such as in Riau and Kalimantan. Source: Sta s cs Indonesia, 2014

Source: Sta s cs Indonesia, 2014

MICE or Business Tourism
Within ASEAN, Indonesia was fourth most popular business tourism
des na on. In 2013, business tourism comprised just 3.2% of the total
interna onal tourists arriving in Indonesia. Nonetheless, the number
of MICE tourists grew from 236,000 to 283,000 visitors - That is a jump
of 26% from 2010 to 2013.
Source: ICCA (2013), Data from Ministry of Tourism 'Indonesia MICE Promo on
Presenta on' (2013), & BPPI (2013)