ASEAN KEY DESTINATIONS
OJK and Tourism Ministry to expand financial sector investment in tourism
Indonesia: The Financial Service Authority (OJK) will encourage the financial sector to expand funding in the tourist sector, especially to support the development of 10 new tourist destinations in Indonesia.
The OJK and the Tourism Ministry have signed a Memorandum of Understanding (MoU) to develop tourist destinations through expanding the role of the private financial sector. The OJK and the Tourism Ministry are eyeing 20 million foreign visitors by 2019.
The partnership allows non-bank financial institutions such as multi-finance companies, insurance companies, pension funds and the capital markets to finance tourist projects, said OJK deputy commissioner for non-banking supervision Dumoly F. Pardede.
"In the scheme, potential investment could reach around Rp 10 trillion," he said, explaining that the financial sector would cover tourist businesses, special economic zones (KEKs), travel agencies and life insurance for travelers.
The Indonesia Financial Services Association will follow up on the MoU by signing an agreement with the Indonesian Hotels and Restaurants Association on the financing of tourist destinations on April 20 in Bali.
The ten new prioritized destinations are Lake Toba, Belitung, Tanjung Lesung, Thousand Islands, Borobudur Temple, Mount Bromo, Mandalika, Lombok, Komodo Island, Wakatobi National Park and Morotai.
Tourism Minister Arief Yahya said there was potential investment of Rp 10 trillion from the private sector, or 10 percent of the total investment required for the development of the 10 new tourist destinations.
The government has allocated Rp 100 trillion for the development of infrastructure and basic facilities for the 10 new destinations. "In total, Rp 200 trillion is needed to develop the 10 destinations," he said.
Indonesia, according to Arief, needs an additional 120,000 hotel rooms, 15,000 restaurants, 100 recreational parks, 100 diving operators, 100 marinas and 100 KEKs.
He further said the government considered tourism to be a leading sector in the economy because of its contribution to national economic growth and foreign exchange earnings.
President Joko Widodo expects tourism to contribute 15 percent to gross domestic product, generate foreign exchange of Rp 240 trillion, and create jobs for 13 million people.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below