Jakarta. The government announced Monday that it's preparing a fund aimed at tourism promotion as Indonesia sought to increase its chances of hosting prestigious events.

The Indonesia Tourism Fund aims to manage Rp 2 trillion (about $129 million) in the first year. The first-phase fund will entirely come from the government budget. The government also plans to start distributing the funds for eligible events in 2024, according to Tourism Minister Sandiaga Uno.

“The Indonesia Tourism Fund aims to support events, promote tourism, and improve Indonesia’s national branding,” Sandiaga told reporters shortly after meeting President Joko “Jokowi” Widodo at the Merdeka Palace in Jakarta.

Indonesia will not establish a new body to supervise the money. However, the Finance Ministry’s Indonesia Endowment Fund for Education (LPDP) will be in charge of managing the tourism fund.

Jokowi will likely issue the presidential regulation on the Indonesia Tourism Fund later this month. According to Sandiaga, the government will pick which events are eligible to access the fund. 

 “We will carefully select world-class events that can spur both local and nationwide economic growth. … Hopefully, this can help us win bids to host major events, … such as the World Cup and music concerts,” Sandiaga said.

The tourism sector was forecast to generate more than Rp 220 trillion next year, Sandiaga told the press briefing. A foreign tourist usually spends $1,500 when traveling in Indonesia.

The National Statistics Agency (BPS) reported that Indonesia had attracted 9.49 million foreign tourists in January-October 2023.

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