The Ministry of Tourism and Creative Economy (Kemenparekraf) is investing in 25 projects in Indonesia in 2022. Its projects are five Super Priority Destination (DSP), 8 Special Economic Zone (KEK) and 12 eco-tourism investment projects.
The ministry concerns the administration of tourism and creative economy. Sandiaga Salahuddin Uno – a businessman and politician – is the incumbent minister since 2020. He served as deputy Jakarta governor under Anies Baswedan from Oktober 2017 to September 2018, before becoming a minister.
Collaboration in 30 tourism and creative economy subsectors
Uno said the ministry’s five DSP includes Lake Toba in North Sumatra, Borobudur Buddhist Temple in Central Java, Mandalika in Lombok Island, West Nusa Tenggara, Labuan Bajo in East Nusa Tenggara and Likupang in North Sulawesi. The ministry will include the construction of three infrastructures such as accommodation, amenities and accessibility and attractions.
“We also open opportunity for collaboration that will include 30 subsectors in tourism and creative economy,” said Uno on August 15, 2022.
Uno explained that the investments would include the construction of hotels, restaurants, cafes and other creative economy businesses in its eight KEK. On the other hand, he also stated that his ministry would also invest in sustainable eco-tourism. Uno believed that eco-tourism was driven by high demands by economic actors.
According to Uno in a Tourism and Creative Economy Investment Forum on March 3, 2022, the investment in tourism would bring in new employment for up to 1.5 million people. This proves the economic revival that was supported by micro-, small- and medium-enterprises (UMKM) which has created 97% of new jobs.
Challenges for realization of these projects
Despite this, the ministry said in August 2021 that during the COVID-19 pandemic, Indonesia’s tourism sector also saw a decrease in working hours. With its 12.91 million workers in the tourism sector had a decrease in working hours and another 939 thousand workers in the sector did not work.
On the other hand, according to CNBC Indonesia in September 2021, the Head of Capital Investment Coordinating Board (BKPM) Bahlil Lahadalia said there were several problems with KEK that hinders investment. One of which was the price issue; secondly, the electricity issue was still expensive.
Meanwhile, according to researchgate.net in February 2021, one of the significant issues in the development of eco-tourism was how to create the participation of the community to expand the opportunities for locals in participating in the development of eco-tourism.
