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Indonesia’s tourism ministry plans roadshows to attract investors

JAKARTA —Indonesia’s Ministry of Tourism is seeking up to 90 trillion rupiah (S$9.2 billion) worth of investment in nine tourism destinations outside of Bali, with plans to hold roadshows in the region to attract potential investors.

Borobudur Temple Compounds. Photo: UNESCO

Borobudur Temple Compounds. Photo: UNESCO

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JAKARTA —Indonesia’s Ministry of Tourism is seeking up to 90 trillion rupiah (S$9.2 billion) worth of investment in nine tourism destinations outside of Bali, with plans to hold roadshows in the region to attract potential investors.

The ministry has been actively promoting the top 10 beyond-Bali tourism destinations in the country: Borobudur Temple (Central Java), Mandalika Resort (West Nusa Tenggara), Labuan Bajo fishing village (East Nusa Tenggara), Bromo Tengger Semeru Mountain (East Java), the Thousand Islands (Jakarta), Toba Lake (North Sumatra), the Wakatobi Marine Park (South-east Sulawesi), Tanjung Lesung (Banten), Morotai (North Maluku), and Tanjung Kelayang (Bangka Belitung).

Mr Hiramsyah Sambudhy Thaib, the chairman of a working group at the ministry, said the 10 destinations would require US$20.8 billion (S$28 billion) for infrastructure development.

Mr Hiramsyah said that of the 10 top destinations, four already earned special economic zone status, namely Mandalika, Tanjung Lesung, Morotai and Tanjung Kelayang, which will allow investors to secure some fiscal privileges when they invest in those areas.

“Tanjung Kelayang (as a special economic zone) was inaugurated by President Joko Widodo, while the rest were by former President SBY,” he said, referring to former President Susilo Bambang Yudhoyono.

Mr Hiramsyah said the government seeks to develop all priority destinations into special economic zones. “One zone could have more than one competitive sector to offer. Take Morotai, which offers both tourism and manufacturing potential,” he said.

Mr Hiramsyah said the government is now working to establish Borobudur, Bromo Tengger Semeru, Labuan Bajo and Wakatobi as special economic zones. The presidential regulation to legally declare these tourism destinations as special economic zones is expected to be signed by the end of September.

He said the change of status for those destinations is necessary because with special economic zone status, it will be easier to invite investors with the facilities offered by the government, and it will help the destinations’ potential to continue growing.

The project team has made its way to China and South Korea, attracting at least 10 potential investors who showed interest in developing resorts, hotels and even theme parks. Mr Hiramsyah said the roadshow will continue to Australia, Singapore, Hong Kong and Japan, and is optimistic that Indonesia will be able to reach its target of attracting 20 million tourists annually by 2019.

According to Indonesian Tourism Industry Association chairman Didien Junaedy, the 10 priority destinations will be able to lure foreign tourists with their unique scenery and culture, which would see a 25 per cent increase in foreign arrivals next year, at 15 million.

Mr Edwin Darmasetiawa, director for development at the state-owned Indonesian Tourism Development Corporation (ITDC), revealed that the firm has invested 3.4 trillion rupiah in the development of Mandalika in Lombok, West Nusa Tenggara, and that it has drawn interest from South Korean investor Woori Investment & Development Property.

The South Korean developer will be building hotels and resorts in the area. It has already invested 500 million rupiah in the project after signing an agreement with the ITDC to complete the development within a year.

ITDC president director Abdulbar M Mansoer stated that the ITDC has also signed a cooperation agreement with Jiva Samudra Biru to help conserve the coral reefs, mangroves and coastal ecosystems in the area.

He said Mandalika will see the involvement of international hotel chains, namely Intercontinental, ClubMed and Pullman.

The ministry has made it a top priority to attract at least 12 million tourists to Indonesia this year, generating US$12 billion in revenue. THE JAKARTA GLOBE

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