THE Indonesian Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno reiterated the government’s commitment to attracting foreign investment in the tourism sector.
Sandi explained the various steps that have been taken to support and facilitate the entry of foreign capital, especially for the development of quality and sustainable tourism.
“We want to attract more investment, especially outside the Special Economic Zone (SEZ),” said Sandi on the sidelines of the Nice to Meet You event yesterday.
According to him, the government continues to strive to create a conducive and attractive investment environment for foreign investors.
One of the concrete steps that has been taken is the holding of the International Tourism Investment Forum, which has now been held for the second time in collaboration with UN Tourism.
The forum aims to bring together global investors with investment opportunities in Indonesia’s tourism sector. Of course, he continued, investors who enter are not only limited to Bali, but also extend to various other regions in Indonesia.
Also read: Bali’s Economic Growth Triggers Property Investment
In his explanation, Sandi emphasized that the government is committed to opening up new business and employment opportunities in line with national regulations.
“We are opening up business and employment opportunities in accordance with the scope of our regulatory corridors which are very friendly to foreign investment,” he stressed.
The regulations applied, he continued, refer to the principles of green economy and the opening of wide employment opportunities for local communities. So that it not only provides financial benefits but also provides positive social impacts.
Also read: Sandiaga Reveals the Purpose of the IDR 150,000 Levy for Foreign Tourists in Bali
The government, according to the Minister of Tourism and Creative Economy, also offers various facilities for foreign investors, especially in special economic zones (KEK).
“In the KEK, there will be fiscal convenience, licensing convenience, and easier investment arrangements,” he explained.
In addition, outside of special economic zones, the government continues to provide various incentives such as fiscal convenience and joint promotion opportunities, which are expected to increase investment attractiveness in various regions of Indonesia.
Also read: Tourism and Creative Economy Entrepreneurs Asked to Pay Attention to Environmental Conservation Issues
This commitment also received support from the private sector.
Magnum Estate has long invested in Indonesia, especially in Bali.
Magnum Estate Co-Partner Andrejs Senkovs stated that Magnum Estate’s main goal is to develop high-quality properties in Indonesia. Bali is the first step in that direction.
“Bali is our first step,” said Andrejs Senkovs.
Before the covid-19 pandemic, Magnum Estate had built hotels unlike any other in Bali. Currently, Magnum has 11 ongoing projects on the island.
Not only stopping in Bali, Magnum Estate has also started new projects in Jakarta and the Capital City of the Archipelago (IKN).
“We have just acquired the land and have signed an agreement with the government to build a 5-star property hotel in the IKN,” Senkovs explained.
This project is expected to increase the attractiveness of investment in the IKN, which is the new center of government of Indonesia.
“The Bingang Hotel that we are developing will not only provide comfort for its residents, but will also be one of the main drivers of investment in the area,” he added.
Andrejs Senkovs also highlighted the importance of complying with existing regulations in running projects in Indonesia.
According to him, one of the keys to success in investing in Indonesia is understanding and following the applicable regulations.
“The rules are here. The regulations are here. If you follow them, it will be much easier to move,” he said.
Magnum Estate, he continued, always tries to collaborate with the government and ensure that every step they take is in accordance with market needs and applicable regulations.
Andrejs Senkovs also noted that despite the challenges in building projects in Indonesia, they remain optimistic and see great opportunities in this market.
“Of course there are different challenges in every country, but if you work hard, you can reach the next stage,” he said.
Over the past two years, Magnum Estate has attracted more than 2 trillion rupiah in investment to Indonesia through its investor network. Andrejs Senkovs emphasized that the investments they make are not only for short-term profits, but also for long-term development that will provide great benefits to Indonesia.
Andrejs Senkovs added that Magnum Estate supports the Ministry of Tourism and Creative Economy in bringing in tourists as their clients from all over the world.
“We who come from the developer association, the hotel association certainly feel honored to help Indonesia become one of the top five great economies in the world in 2045,” he said. (Z-10)
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Table of Contents
Indonesia’s Tourism Sector: A Promising Investment Opportunity
Indonesia’s tourism sector has been gaining significant attention in recent years, and the government has been taking concrete steps to attract foreign investment in this sector. The Minister of Tourism and Creative Economy, Sandiaga Uno, has reiterated the government’s commitment to creating a conducive and attractive investment environment for foreign investors.
Government’s Efforts to Attract Foreign Investment
One of the key steps taken by the government is the holding of the International Tourism Investment Forum, which has been held for the second time in collaboration with UN Tourism. This forum aims to bring together global investors with investment opportunities in Indonesia’s tourism sector. The government has also been offering various facilities for foreign investors, especially in special economic zones (KEK), such as fiscal convenience, licensing convenience, and easier investment arrangements.
Private Sector Support
The private sector has also been showing enthusiasm for investing in Indonesia’s tourism sector. Magnum Estate, a company that has long invested in Indonesia, especially in Bali, has stated its commitment to developing high-quality properties in the country. Magnum Estate Co-Partner Andrejs Senkovs emphasized the importance of complying with existing regulations in running projects in Indonesia, and highlighted the company’s efforts to collaborate with the government to ensure that every step taken is in accordance with market needs and applicable regulations.
Investment Opportunities
Indonesia’s tourism sector offers immense investment opportunities, with the potential to generate significant revenue and create jobs. The government has set a target to increase the sector’s contribution to the country’s GDP from 4% to 8% by 2025 [[3]]. The tourism sector is also expected to create new business and employment opportunities, in line with national regulations, and provide positive social impacts.
Infrastructure Development
Infrastructure development is critical to tourism growth, and the government has been investing in improving infrastructure, such as airports, hotels, and transportation facilities. This investment is expected to increase the attractiveness of Indonesia as a tourist destination and make it more competitive globally.
Rp 2 Trillion Tourism Fund
To further support the tourism sector, the government has established a Rp 2 trillion (approximately USD 128.6 million) tourism fund, which will be aimed at supporting tourism promotional events and nation branding [[1]]. This fund is expected to provide a boost to the sector and attract more foreign investment.
Long-Term Strategy
Investing in tourism is a long-term strategy, and Indonesia’s efforts to develop its tourism sector are expected to pay off in the coming years. As the sector grows, it is expected to create more job opportunities and contribute significantly to the country’s economy.
Conclusion
Indonesia’s tourism sector offers immense investment opportunities, and the government’s efforts to attract foreign investment are expected to pay off. The private sector’s support for the sector is also a positive sign, and with the right infrastructure development and investment, Indonesia’s tourism sector is expected to grow significantly in the coming years.
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Indonesia Opens its Doors to Foreign Investment in Tourism Sector
The Indonesian government has reiterated its commitment to attracting foreign investment in the tourism sector, with various steps taken to support and facilitate the entry of foreign capital. According to the Minister of Tourism and Creative Economy, Sandiaga Uno, the government is striving to create a conducive and attractive investment environment for foreign investors.
Indonesia offers a favorable environment for investment, with different regions offering business-friendly policies and investment incentives[[[2]]. The government has taken concrete steps to support foreign investment, including the holding of the International Tourism Investment Forum, which has now been held for the second time in collaboration with UN Tourism.
The forum aims to bring together global investors with investment opportunities in Indonesia’s tourism sector, not only limited to Bali but also extending to various other regions in Indonesia. The government is committed to opening up new business and employment opportunities in line with national regulations, with a focus on green economy and providing positive social impacts.
Foreign investors can benefit from various facilities offered by the government, especially in special economic zones (KEK), including fiscal convenience, licensing convenience, and easier investment arrangements [[1]]. Outside of special economic zones, the government continues to provide various incentives such as fiscal convenience and joint promotion opportunities, which are expected to increase investment attractiveness in various regions of Indonesia.
In addition to government support, the private sector is also playing a crucial role in attracting foreign investment in Indonesia. Magnum Estate, a private company, has invested heavily in Indonesia, particularly in Bali, with a goal to develop high-quality properties in the country. Andrejs Senkovs, Co-Partner of Magnum Estate, emphasized the importance of complying with existing regulations in running projects in Indonesia, highlighting that understanding and following the applicable regulations is key to success in investing in Indonesia.
Indonesia’s Sovereign Wealth Fund, the Indonesia Investment Authority, also plays a vital role in attracting foreign investment, aiming to build wealth for Indonesia’s future generations [[1]]. The fund provides a platform for foreign investors to partner with the Indonesian government and invest in various sectors, including tourism.
With the government and private sector working hand-in-hand, Indonesia is poised to become a prime destination for foreign investment in the tourism sector. The country’s commitment to creating a conducive investment environment, coupled with its rich cultural heritage and natural beauty, makes it an attractive option for foreign investors.
Indonesia is open for business, and foreign investors are encouraged to explore the various investment opportunities available in the tourism sector. With its favorable investment environment, business-friendly policies, and commitment to sustainable tourism, Indonesia is an ideal destination for foreign investment.
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