Sandiaga Uno: Indonesia Needs More Investment In The Tourism Sector

Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno. (Photo: Doc. Antara)

JAKARTA - Minister of Tourism and Creative Economy Sandiaga Uno said that Indonesia needs more investment in the tourism sector.

In the 2024 Tourism Investment International Forum in Jakarta, Wednesday, June 5, Sandiaga said that in 2023 Indonesia recorded investment realization in the tourism sector of 3,604 million US dollars or around Rp. 58.64 trillion.

However, 80 percent of these investments are only concentrated on star hotels, restaurants and cafes, as well as fitness centers.

Meanwhile, the realization of investment in the tourism sector in the first quarter of 2024 reached US$943.40 million (Rp15.35 trillion) from the target of US$3,000 million (Rp48.91 trillion). The three business sectors that received the most foreign direct investment (FDI) during the quarter were star hotels, restaurants, and apartment hotels.

"We need more investment in the ecosystem, including the development of sustainable tourism products and inclusive community-based tourism," he said, as reported by Antara.

Sandiaga said Indonesia needed investment of more than 15 to 20 billion US dollars to support sustainable tourism.

Menparekraf is optimistic that the 2024 International Tourism Investment Forum (ITIF) can attract more investors from within and outside the country to invest in the Indonesian tourism sector, not only for hotels, restaurants and cafes, but also for tourism supporting infrastructure.

Moreover, Indonesia has been recognized as the best Muslim-friendly tourist destination in the world by the Global Muslim Travel Index (GMTI) in 2023 and 2024. This is complemented by a significant increase in Indonesia's position in the 2024 Tourism Development Index, from 32nd to 22nd.

"We believe that we can create three times more investment in these sectors," said Sandiaga.