The Indonesian government has decided to allow 100 percent foreigninvestments to its tourism sector as long as they team up with at leastone local partner.
Announcing the decision on April28, Firmansyah Rahim, who heads the Department for Tourism DestinationDevelopment of the Ministry of Tourism and Creative Economy, said hiscountry boasts a diversity of untouched tourism destinations that needinvestors to tap their potentials.
This is thereason behind the Ministry of Tourism’s move to push investments throughvarious programmes and incentives, including raising foreign ownershipcap, which is expected to create more jobs, improve social welfares andsupport economic growths of localities, he said.
Inaddition to enjoying the Government’s programmes, the tourism sector hasalso benefited from the trend of “green tourism” and “green lifestyle”in the community to support local bio-diversity.
Asurvey conducted in late 2013 by the Japan Bank for InternationalCooperation (JBIC), foreign investment to the hospitability industryaccounted for 44.9 percent of Indonesia’s total foreign investment.
The country is emerging as the most prospective destination toinvestors within the next three year period. It is followed by India,Thailand, China and Vietnam.
It is valued as the most potential location for hotel investments in the Asia-Pacific./.