In 2014, the state earned approximately IDR 136 trillion through tourism, meaning that the sector was the fourth-largest contributor to the country’s revenue after oil and gas, coal and palm oil. However an even more ambitious, if not utopian, target was then set by the Minister of Tourism, who stated that Indonesia’s tourism sector would generate no less than IDR 260 trillion in 2020, thus positioning the sector as the biggest contributor to the national economy overall. Meanwhile, investment in the tourism sector is this year expected to reach USD 1.7 billion, which represents an increase of 28.96% over 2016’s figure of USD 1.35 billion.
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In order to achieve these lofty goals, several measures have been introduced. One of the most substantial efforts currently being made by the government is its attempt to liberalize investment within the tourism sector by redefining the foreign-investment cap through Presidential Regulation
No. 44 of 2016 on the List of Business Fields Which Are Closed and Conditionally Open to Investment (“
2016 Negative Investment List”). Indeed, this liberalization process has already significantly improved investment within the tourism sector in just a short period. However, as of April 2017, the government had only achieved 25% of its overall target.
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In order to boost investment and state revenue as regards the tourism sector, President Joko Widodo has also determined 10 priority national tourism destinations that the Ministry of Tourism (“
Ministry”) will be specifically focusing on:
[3]......