Unlocking the Potential of Indonesian Tourism to Drive Economic Growth
By Teguh Anantawikrama,
Vice Chairman of the Indonesian Chamber of Commerce (KADIN)/ Chairman of the Indonesian Tourism Investor Club
INVESTORTRUST.ID - Indonesia is blessed with extraordinary tourism potential—pristine islands, diverse cultures, world-class biodiversity, and warm hospitality. Yet, despite these assets, tourism has not reached its full potential as a key economic driver.
To change this, we must address three strategic barriers: connectivity, regulatory complexity, and restrictive visa policies.
1. Connectivity: Bridging the Archipelago
Indonesia is an archipelago of over 17,000 islands, which creates both an advantage and a logistical challenge. Many world-class destinations—from Raja Ampat to Wakatobi—remain under-visited due to limited access.
To unlock this potential:
• We must expand regional airports and seaports, especially in emerging destinations.
• Provide subsidies or incentives for inter-island flights and ferries, particularly on new tourism routes.
• Facilitate public-private partnerships (PPPs) to fund transport infrastructure.
• Develop maritime tourism, including cruise and yacht routes connecting coastal and remote islands.
• Improve digital connectivity, ensuring tourists can plan, navigate, and share their experiences easily.
Tourism cannot grow where mobility is restricted. Infrastructure development must be viewed not only as a logistics issue but as an enabler of inclusive economic opportunity.
2. Regulatory Reform: Making Tourism Investment-Friendly
Currently, many tourism businesses face overlapping regulations, long permit processes, and inconsistent policies between ministries and local governments.
To become truly investor-friendly, Indonesia needs:
• A streamlined, one-stop system for business licensing in the tourism sector.
• Expansion of Tourism Special Economic Zones (SEZs) that offer incentives and legal clarity.
• Clear land-use and building regulations to avoid prolonged disputes and uncertainty.
• Strong support for community-based tourism (desa wisata), including microfinancing, legal training, and market access.
• A Tourism Investment Task Force that actively resolves bottlenecks and facilitates large-scale strategic projects.
If we want more hotel chains, resorts, and eco-retreats across the archipelago, we must make it easier—and more attractive—for investors to act.
3. Visa Policies: Opening the Gateway to the World
Visa policy plays a direct role in attracting tourists. Compared to Thailand, Malaysia, and Vietnam, Indonesia still lags in ease of entry.
Steps we must take include:
• Expanding the visa-free access list to include more countries, particularly those with growing outbound tourism like China, India, Russia, and the Gulf.
• Offering multiple-entry or long-stay visas for digital nomads, retirees, and repeat visitors.
• Enhancing the Visa on Arrival (VoA) and e-Visa platforms for efficiency and transparency.
• Working on bilateral visa waiver agreements to broaden our appeal and reciprocity.
Tourists seek destinations that welcome them—not just with beauty, but with bureaucracy that works for them.
The 'Anthem of the Seas' cruise ship docked at Benoa Port in Denpasar, Bali, on Friday (February 28, 2025). Photo: Antara/HO-Pelindo Benoa.
4. Creating a Resilient and Sustainable Tourism Ecosystem
Beyond the three primary pillars, we must invest in:
• Tourism education and training—to equip our youth with hospitality, language, and digital skills.
• Destination branding and segmentation, from ecotourism to halal tourism to luxury and adventure niches.
• Environmental and cultural conservation, ensuring that tourism enhances, rather than harms, local communities.
Tourism should be sustainable, inclusive, and empowering—especially for women, youth, and rural entrepreneurs.
From Potential to Prosperity
With the right reforms, tourism can become one of Indonesia’s most powerful engines of economic growth. It creates millions of jobs, generates foreign exchange, stimulates local economies, and promotes cultural diplomacy.
As we continue to build “Indonesia Incorporated”, let us ensure tourism is not just a sector—but a national movement. Through improved connectivity, simplified regulations, and an open door to the world, Indonesia can emerge not only as a beautiful destination—but as a global tourism powerhouse. ***
