Uno Pushes For More Investment at Five Priority Tourism Destinations

Sandiaga Salahuddin Uno, the head of the Ministry of Tourism and Creative Economy, is strongly advocating for enhanced investment at five priority tourism destinations.

Sandiaga Salahuddin Uno, the head of the Ministry of Tourism and Creative Economy, is strongly advocating for enhanced investment at five priority tourism destinations. This amplified financial commitment, he believes, will be a catalyst for maximum economic growth in these strategic areas. The minister underscores the pivotal role of escalated investment in these priority tourism destinations as a strategy to harness their full tourism potential and steer economic progress.

Uno Pushes For More Investment at Five Priority Tourism Destinations

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"We see that the growth in the five super-priority destinations remains sub-optimal. I am keen to push for more investment because the total (investment realization) of Rp5.31 trillion (US$356.7 million) is very low for a sector with such a strategic value for Indonesia," he stated while opening the Indonesian Tourism Industry Association’s (GIPI’s) national working meeting here on Tuesday.

The Ministry of Tourism and Creative Economy has chosen five super-priority tourism destinations (DSPs): Lake Toba in North Sumatra, Likupang in North Sulawesi, Borobudur in Central Java, Mandalika in West Nusa Tenggara, and Labuan Bajo in East Nusa Tenggara. These locations have been designated as significant areas for tourism development and promotion by the ministry.

Uno Pushes For More Investment at Five Priority Tourism Destinations
Image Source: ANTARA News

The total value of all existing projects at the five DSPs is estimated to be Rp172.2 trillion (US$11.5 billion), including government investments, he disclosed. Meanwhile, the value of ongoing cooperation commitments with various parties has reached Rp1.55 trillion (US$104 million) and the investment interest value has touched Rp1.18 trillion (US$79.2 million), he added.

Minister of Tourism and Creative Economy, Sandiaga Salahuddin Uno, expressed concern over the relatively low total commitment value for the five super-priority destinations. Uno emphasized the need for increased investment and collaboration to fully harness the potential of Lake Toba, Likupang, Borobudur, Mandalika, and Labuan Bajo. Recognizing the significant economic prospects, Uno urged stakeholders to actively contribute to their development, enabling these destinations to flourish as vibrant tourism and creative industry hubs.

Uno Pushes For More Investment at Five Priority Tourism Destinations

The minister said that the five destinations need US$6 billion to US$8 billion in investments to develop the regions, while the ongoing investment value has only reached less than Rp10 trillion (US$671 million). He added that one probable reason for the sub-optimal investment at the five DSPs has been the investor's wait-and-see approach in view of the general elections next year.

In addition to the concerns raised by Minister Sandiaga Salahuddin Uno, the Chairperson of the Indonesian Hotel and Restaurant Association (GIPI), Haryadi Sukamdani, shed light on another potential obstacle hindering investment in the five super-priority destinations. Sukamdani pointed out that banks, despite the immense potential of these tourism areas, still perceive the tourism sector as a risky business venture.

Uno Pushes For More Investment at Five Priority Tourism Destinations

This cautious approach from financial institutions may deter potential investors from securing the necessary funding and support to embark on ambitious projects in Lake Toba, Likupang, Borobudur, Mandalika, and Labuan Bajo. Sukamdani emphasized the need for a shift in mindset and the cultivation of confidence among banks to foster greater investment in the tourism sector, ultimately unleashing the full economic potential of these super-priority destinations.

"We should consider this again because if banks do not support us, the investment will be slow," he added.

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