Friday, December 1, 2017

Indonesia’s 10 ‘New Balis’: Jokowi’s Plan for A Greater Economy


The Indonesian Government has launched plans to replicate Bali’s success as a top tourist destination in 10 different locations across Indonesia’s wide archipelago.

Like Bali? Indonesia wants to create 10 of them to draw Chinese tourists

Joko Widodo in front of Lake Toba, North Sumatra, (Image Credit: Bloomberg/Dimas Ardian)



While it has long been known that Bali is one of the most beautiful and popular tropical paradises in the world, the Indonesian government is enthusiastic to shine the light on 10 other locations in the country. The main drive in highlighting these tourist spots is to help boost the nation’s economy by attracting more International and local tourists.

The 10 locations, dubbed the “new Balis”, include Lake Toba in North Sumatra, Tanjung Kelayang in Bangka Belitung, Tanjung Lesung in Banten, Thousand Islands Regency in Jakarta, Borobodur Temple in Central Java, Mount Bromo in East Java, Mandalika in West Nusa Tenggara, Labuan Bajo in West Nusa Tenggara, Wakatobi in South Sulawesi, and Morotai Island in North Maluku.

Image result for borobudurThe criteria to select the locations as Indonesia’s new top tourist destinations are based on the Three As: its own attraction, its need for better access and amenities. “The strategy is to accelerate development. For a start, we looked at the ones with high potential and that are already iconic, but have relatively low visitor numbers and have a problem with access and infrastructure,” Deputy Tourism Minister Dadang Rizki Ratman told The Straits Times in an interview earlier in October this year. (Borobodur Temple, Image Credit: Lonely Planet)


The President of Indonesia Joko Widodo himself, better known as Jokowi, emphasised the importance of improving Indonesian tourism in the coming years. “There’s a huge opportunity to develop our tourism if we have plenty of new tourist destinations,” said Jokowi at a limited cabinet meeting last week, as reported by The Jakarta Post.

He further explained that tourism is currently growing in the global scene, such as China that sends out 125 million tourists in a year. In five years, the number is expected to reach 180 million. Jokowi added that he hopes each destination will offer something different to the table. A distinction in experience from each location is needed to drive even more interest in the future.  
         
The rise in tourism will organically create more economic growth in Indonesia. As more demand and interest in Indonesian tourism will inevitably create more jobs for locals and give local businesses and attractions global exposure. More exposure will lead to even more demand that will contribute to the overall turning of the Indonesian economy.

Indonesia’s economy is still highly dependent on commodities such as coal and palm oil, that has managed to keep the country in the G20. By pursuing tourism to diversify the country’s revenue sources, Indonesia may see itself propelled into an even brighter economic future. “We hope that tourism will become Indonesia’s largest source of foreign exchange contributions. I promised to Pak Jokowi and to Indonesia, I will make it happen,” expressed Tourism Minister Arief Yahya to Bloomberg.

(Graph credit: Bloomberg)

However, compared to their Southeast Asian counterparts such as Thailand, Malaysia, and Singapore; Indonesia is still far behind in developing its tourism. Thailand’s tourism industry makes up 18% of the nation’s gross domestic product (GDP) and is responsible for attracting up to 26 million foreign tourists up until October of this year, compared to Indonesia’s 9.2 million people up until August of this year, as reported by Bloomberg and The Jakarta Post.

It is important to note that Indonesia’s recent statistic from August of this year, that accumulates to 9.2 million foreign tourists, is a significant improvement from past statistics. According to tradingeconomics.com, in 2014 Indonesia welcomed 9.3 million foreign tourists. In 2015 the number went up to 10.4 million people, then in 2016 the number reached 12 million people. Indonesia has seen an overall 34% increase in foreign tourists since 2014.

If Indonesia hopes to see a significant increase in the previous statistic through the implementation of the 10 New Balis plan, a specific focus on infrastructure development must be emphasised. “To be successful in tourism, infrastructure is very important, especially for accessibility. When we open a new destination and there is good accessibility, either by air or sea, the number of visitors will grow very fast,” said Anak Agung Gede Yuniartha Putra, Bali’s tourism office chief to Bloomberg, echoing the previous statement by Ratman to The Straits Times.

It is clear that Indonesia’s move in diversifying their sources of revenue is an ambitious move. It is about time for the nation, that boasts more than 17.000 islands surrounded by an abundance of floras and faunas, to inject more investment into its mother-nature-blessed-natural-assets. Hopefully, propelling the nation into an even brighter economic future.

References


Annemarie Sieraphin Minaesta Wantah
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