Indonesia Pushes for Quality Tourism with New Tourism Fund

International Tourists Enjoying Sunset in Bali

Indonesia is taking a major step to enhance its tourism sector by introducing a tourism fund aimed at promoting quality and sustainable tourism. The government has set a deadline to finalize this fund by August 2024, according to a recent announcement.

During a weekly briefing, Sandiaga Salahuddin Uno, the Minister of Tourism and Creative Economy, revealed that the tourism fund was recently approved in a meeting with the president and the president-elect. “The regulations are targeted to be finalized by August 2024,” he said at the Sapta Pesona Building in Jakarta on Monday, July 8, 2024.

The fund, projected at IDR 2 trillion, is slated for inclusion in the 2025 State Budget Plan (RAPBN). Sandiaga emphasized that this initiative does not rely on tourism levies. Instead, it is designed to support high-quality and sustainable tourism activities, such as international events, cultural festivals, sports events, and MICE (meetings, incentives, conventions, exhibitions).

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“This fund will be used for nation branding and promoting tourism in Indonesia,” Sandiaga explained. “For example, if we have a major global conference, like the recent Water World Conference in Bali, or if we are bidding for large sporting events like the FIFA World Cup, this fund can be utilized,” he added, referencing a statement from on October 5, 2023.

Additionally, the fund aims to support concerts and other major international events, which have been shown to boost foreign tourist arrivals by 10-15% after each event. The IDR 2 trillion fund will be managed by the Public Service Agency (BLU) under the Ministry of Finance, specifically by the Environmental Fund Management Agency (BPDLH).

“It’s important to note that there will be no additional charges imposed on tourists,” Sandiaga stressed. “This fund is not managed by the ministry but by BPDLH,” he clarified after a limited cabinet meeting at the Presidential Palace in Jakarta on Monday, July 8, 2024.

The tourism fund will focus on financing events that have the potential to drive economic growth, attract tourists, and ensure sustainability. By supporting such initiatives, Indonesia aims to position itself as a premier destination for international tourists while fostering economic development and environmental stewardship.

As the government gears up to implement this fund, stakeholders in the tourism sector are optimistic about the potential benefits. With a strategic approach to attracting high-profile events and promoting sustainable practices, Indonesia is set to enhance its global tourism appeal and drive substantial economic gains.