Tourism Investment Still Concentrated in Jakarta, Bali: Minister
Jakarta. Indonesia is seeking to spread tourism investment beyond Jakarta and Bali, where 76.5% of the country's tourism investment is currently concentrated, Tourism Minister Widiyanti Putri Wardhana said Friday.
Tourism investment reached a record Rp 73.56 trillion ($4.18 billion) in 2025, but about 75% of the investment in Jakarta and Bali went to hotels and restaurants, Widiyanti said.
The government is seeking to diversify investment across 13 priority destinations and 10 tourism special economic zones, while encouraging investment in sectors beyond accommodation and food services.
"We are currently diversifying investment in priority destinations outside Bali and Jakarta," Widiyanti said.
The government is promoting projects including cruise ship marinas, supporting infrastructure, and new tourism attractions. It is also offering incentives, including tax allowances, incentives for labor-intensive industries, and import-duty exemptions for tourism equipment and yachts.
The push comes as travel patterns shift beyond Java and Bali. Tourist visits to Lake Toba in North Sumatra rose more than 106% in early 2026, while visits to Lombok-Gili Tramena increased 72.1%, according to the ministry. Labuan Bajo in East Nusa Tenggara has also continued to see strong growth and remains a key investment prospect.
Tourism's contribution to Indonesia's gross domestic product increased from Rp 729.1 trillion in 2022 to Rp 1.14 quadrillion in 2025. The government expects the figure to reach Rp 1.19 quadrillion this year.
West Sumatra is also seeking to attract investment by developing three tourism clusters. The Mentawai Islands are being promoted for world-class surfing; Padang and Mandeh for marine tourism and meetings, incentives, conferences, and exhibitions; while Sawahlunto is focusing on historical and cultural tourism.
West Sumatra Governor Mahyeldi said domestic tourist visits to the province reached 14.9 million from January to July 2026, while the accommodation, food and beverage sector grew 17.57%.
Singapore Ambassador to Indonesia Kwok Fook Seng urged governments to facilitate greater private-sector cooperation, highlighting Singapore Airlines' connectivity between Singapore and 18 destinations in Indonesia as an example of how infrastructure can support tourism growth.
Italian Ambassador Roberto Colaminè said Indonesia also needs to strengthen tourism-related services, including health facilities and hyperbaric chambers to support marine and diving tourism.
Kadin Indonesia Deputy Chairman James Riady said Indonesia's challenge was no longer its tourism potential but its ability to convert that potential into visitor arrivals, longer stays, spending, investment, and jobs.
"Not potential anymore, but conversion," James said, adding that tourism could play a larger role in supporting economic growth and creating employment across the country.
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