Indonesia is eagerly awaiting the launch of the Indonesia Tourism Fund (ITF), a sustainable tourism financing initiative currently in the regulatory drafting phase by the government. Set to debut with an initial allocation of IDR 2 trillion, this fund promises to support tourism development across the country, beyond just high-priority destinations.
Chair of the Tourism and Creative Economy Sector at the Indonesian Employers Association (Apindo), Maulana Yusran, highlighted the fund’s potential to shape Indonesia’s tourism landscape. He emphasized the importance of expanding its use, not only to super-priority sites like Borobudur, Likupang, Mandalika, Lake Toba, and Labuan Bajo but also to benefit broader tourism activities across Indonesia.
“It must be genuinely allocated for nationwide tourism development. That’s the primary concept to focus on,” said Maulana, as quoted by Bisnis on Thursday (31/10/2024). He noted that Indonesia’s limited promotional budget currently restricts effective marketing, underscoring the need for this dedicated tourism fund to attract more foreign visitors.
The ITF is expected to drive international interest through targeted activities, including Meetings, Incentives, Conventions, and Exhibitions (MICE), along with large-scale concerts. These initiatives are viewed as fast-track strategies for boosting foreign tourism. Introduced under the administration of Indonesia’s seventh President, Joko Widodo, the ITF aims to align with broader economic goals.
Tourism Minister Widiyanti Putri Wardhana disclosed that the Ministry is working on finalizing the draft Presidential Regulation (Perpres) to establish the ITF framework.
“We will update further as this progresses. We’re still reviewing and studying it thoroughly, and it will indeed move forward,” said Widiyanti at the Ministry of State-Owned Enterprises on Thursday (31/10/2024).
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Previously, Widiyanti affirmed her commitment to accelerating Indonesia’s tourism growth, outlining four key programs to be rolled out over the next six months. Among these initiatives is the implementation of “Tourism 5.0,” which will leverage AI and digital platforms to promote a nationwide Calendar of Events.
Another critical initiative includes the creation of a grand strategy for using the Indonesia Quality Tourism Fund to enhance local attractions and international events. Widiyanti also announced plans for partnerships with top-tier institutions to foster knowledge transfer and establish a world-class tourism academy.
The ITF will initially concentrate on funding impactful events that bolster the national economy, such as the F1 Powerboat and MotoGP races. According to government sources, the fund will be sourced from the state budget, marking the beginning of Indonesia’s commitment to sustainable tourism.
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