Indonesia gives its greenlight to 100% foreign investment in tourism projects

12 May 2014  2037 | World Travel News

JAKARTA - "The foreign investment in the tourism sector is allowed to reach 100 % under condition that it is within a joint venture with Indonesian partners, since we want share-knowledge and skills through that partnership," stated General Director of Tourism Destination Development Firmansyah Rahim in late April.

Indonesia is rich with untouched tourism destination that needed investors to develop its potentials, that is why Firmansyah noted that the Ministry of Tourism pushes investments through various programs and incentives.

As regions experience tourism growth, jobs would be available for locals, increasing their welfare. Besides through the governments program, the tourism sector in Indonesia has also benefited from the trend of travelling and sustainable lifestyle among Asia’s growing middle class. "There is a potential to develop both biodiversity and indigenous community as eco-tourism destination," Firmansyah clarified.

Moreover, Firmansyah noted that the worlds positive sentiment toward Indonesia is growing continuously that encourages investment in Indonesia.

According to the latest Japan Bank International Corporations (JBIC) survey, Indonesia is on the highest rank of global business investors perception within middle term or around the next three years. In the 2013-conducted survey, which involved 488 answering businessmen as its respondents, they were asked to choose five countries that were considered as prospective investment destinations within the next three years period.

To the surprise, 44.9 % declared Indonesia worth to be considered, which made Indonesia ranking at the top, ahead of China PRC. Following ranks are filled by India (43.6 %), Thailand (38.5 %), China (37.5), and Vietnam (30.3 %).

In line with the survey result, the President Director of Tauzia Hotel Management Indonesia Marc Steinmeyer, - accompany operating Harris Hotel and Pop! Hotel- stated that Indonesia is the most prospective investment destination in the Asian-Pacific region for budget hotels.

"Indonesia is the best place to invest on budget hotel in the Asian-pacific region, we do hope that there is good encouragement and incentive from the government, though," clarified Steinmeyer.

Sourced: TravelDailyNews

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