This document summarizes Indonesia's tourism development project towards sustainability and inclusivity. The 3-sentence summary is: Indonesia aims to develop its tourism sector through the Integrated and Sustainable Tourism Development Program (ITDP) across 6 destinations, with a focus on improving infrastructure, strengthening local economies, and attracting private investment while protecting the environment and communities. The ITDP has made progress in developing tourism master plans, improving roads and services, boosting community participation, and enhancing the enabling environment for businesses. However, more work remains to fully realize the ITDP's goals of promoting inclusive and sustainable tourism growth in Indonesia.

1. Indonesia Tourism
Development
Project
Towards Sustainability and Inclusivity
December 2022

2. Tourism is a promising growth sector that can
provide inclusive and sustainable growth in Indonesia
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• However, environmental sustainability (69th) remains a key risk factor to the
sector, and some of these tourism assets are vulnerable to climate change
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Indonesia is ranked 16th (out of 117
countries) for its cultural resources
Tourism constitutes 5% of Indonesia’s GDP,
and is expected to create 5 million new
jobs over the next decade
Indonesia is ranked 8th (out of 117
countries) for its natural resources
Most visitor spending stays in the
Indonesian economy (only 20% goes
towards imported goods and services)
Sources: Tourism satellite account produced by BPS and MOTCE; BPS 2017. National Labour Force Survey; World Economic Forum Travel and Competitiveness Report 2021

3. Post-COVID-19 prospects for Indonesia’s
tourism industry
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Indonesia has one of the highest vaccination coverages in the world, ranking 4th after
China, India, and the United States.
• Relaxed travel and quarantine regulations.
• Reinstated Visa-on-Arrival policy to foreign tourists entering Indonesia.
• “Revenge tourism” trend encourages tourists to immediately travel.
The revival of tourism is expected to
stabilize in 2024.
Less visited destinations are getting
tourism opportunities.
Awareness on the importance of
protecting the environment and health
standards has increased.

4. Key principles
for tourism
development
Focus on crowding in private investment to anchor tourism assets
and profitable businesses
Governments and industry need flexibility to adapt to changing
realities.
Global supply chains in tourism are dramatically changing. Firms and
governments able to adapt, for example by leveraging digital tools,
will be the winners.
Taking a “Build Back Better” approach is important for long term
resilience for tourism assets, businesses and human capital – since
people form the foundation of tourism.

5. The Integrated and Sustainable Tourism Development Program
(ITDP) contributes to longer term recovery in 6 destinations.
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LOMBOK BOROBUDUR-YOGYAKARTA-PRAMBANAN LAKE TOBA
BROMO-TENGGER-SEMERU
KOMODO NATIONAL PARK-LABUAN BAJO
WAKATOBI

6. The ITDP objective is to improve tourism-relevant infrastructure and services,
strengthen local tourism economies, and attract private investment in tourism
destinations.
• ITDP consists of 4 integrated
components, with a focus on
sustainability and quality (not
quantity).
• Tourism destination development
underpinned by destination-level
integrated tourism master plans
(ITMPs).
• Phase 1 ($772.9 million)
• Lombok
• Borobudur-Yogyakarta-
Prambanan
• Lake Toba
• Phase 2 ($183 million)
• Labuan Bajo / Komodo
• Wakatobi
• Bromo-Tengger-Semeru
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7. Component 1: increase institutional
capacity to facilitate integrated and
sustainable tourism development
Key achievements
• ITMP for Lombok has been adapted into a Presidential
Regulation. ITMP Lake Toba and Borobudur-
Yogyakarta-Prambanan anticipated to follow in early
2023.
• Support to Environmental Impact Assessment of
planned infrastructure development in Komodo
National Park in 2021 helped the site to maintain its
UNESCO World Heritage status.
Ongoing
• ITMP for Wakatobi, Komodo-Labuan Bajo, and Bromo-
Tengger-Semeru are expected to be completed by
early 2023.
• Methodology and baseline for sustainable tourism
indicators monitoring are expected to be completed
and handed over by early 2023.
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8. Component 2: improve tourism-
relevant road quality and basic
services accessibility
Key achievements
• More than 2 million people provided with
access to sustainable solid waste
collection service
• 91% of tourism-relevant roads maintained
in accordance with International
Roughness Index (IRI) < 6
• Environmental and social safeguards to
ensure communities and environment
benefit from infrastructure development
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9. Component 3: promote local participation in
the tourism economy
Key achievements
• High level of community satisfaction with tourism development activities
(baseline score of 4.03 out of 5.00 point-scale).
• Nearly 16,000 tourism businesses supported to establish online presence in
platforms, such as Traveloka and TripAdvisor
• Tourism awareness raising program has reached 9,236 community members
in tourism villages.
• Competency standards for tourism sector employees have been developed,
and nearly 30,000 tourism sector workers (44% female) have been certified.
• Data partnerships with digital platforms, such as TripAdvisor in helping to
identify and address gaps in tourism quality.
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10. Component 4: enhance the
enabling environment for
private investment and business
entry in tourism
Key achievements
• 8 Investment Project Ready to Offer
(I-PRO) are completed (2 for Lombok,
2 for BYP, 1 for Labuan Bajo, 1 for
Wakatobi, 1 for BTS, and 1 for Lake
Toba).
• Investment promotion activities over
the past 4 years reached US$ 532
million, exceeding targets.
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11. Terima kasih