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Priority tourist destinations offered to investors
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ndonesia’s priority tourist destinations are expected to attract both domestic and foreign investment at the Regional Investment Forum (RIF) 2017 in Padang, West Sumatra, on Oct. 15-17.
The forum is being organized by the Investment Coordinating Board (BKPM), and supported by the Tourism Ministry, Bank Indonesia (BI) and the government of West Sumatra province,
Six out of the government’s 10 priority tourist destinations will be the main offers to investors. They are Lake Toba in North Sumatra, Kelayang Cape in Bangka Belitung, Lesung Cape in Banten, Thousand Islands in Jakarta, Borobudur in Central Java, Bromo-Tengger-Semeru in East Java, and two integrated tourism areas in West Sumatra, Mandeh Beach and Mount Padang,
BKPM chairman Thomas Lembon said the selected tourist destinations had great potential for investment. “We will invite approximately 300 foreign and domestic investors with the capacity to invest primarily in developing tourist infrastructure," he said in an official statement to the media on Oct. 2.
Thomas explained that this year's RIF, themed "Showcasing Investment Opportunities in the Indonesian Tourist Industry", followed the government priorities of developing tourism in the archipelago.
"Tourism is highly strategic in the government’s efforts to reduce inequality, especially in improving investment distribution, which is still concentrated in Java," he said.
Based on BKPM data in the period of 2012-2016, investment realization in the tourism sector recorded an average growth of 17 percent per year.
In the first half of 2017, the investment realization reached Rp 12.4 trillion (US$929 million), up 37 percent compared to the first half of 2016. This solid growth indicates that investors are confident in the prospects of Indonesia’s tourism.
"The top-three foreign direct investments in Indonesia's tourist sector in the first half of 2017 came from Singapore at 43 percent, China 29 percent and Malaysia 5 percent," he explained.
Tourism Minister Arief Yahya is among the prominent speakers at RIF 2017 along with BI senior deputy governor Mirza Adityaswara and West Sumatra Governor Irwan Prayitno. Indonesian Ambassador to Australia and Vanuatu Kristiarto Legowo will also be a speaker at the event.
RIF 2017 in Padang is one of BKPM's initiatives to support President Jokowi’s administration in developing tourism. By 2019, the government has targeted the number of foreign tourist arrivals to reach 20 million people per year and domestic tourists amounting to 275 million people. This sector is expected to generate up to Rp 260 trillion in foreign exchange earnings.
"With the increasing number of tourists who will visit and travel to Indonesia, we have to prepare attractions, amenities and accessibility [3A] to meet their needs during their visits to Indonesia," said Tourism Minister Arief.
More information on the offered tourist destinations and the event can be accessed through regionalinvestmentforum.com.
