BUILDING 10 + 1 NEW BALI

Hiramsyah S. ThaibTeam Leader Acceleration for The Development of Priority Tourism Destination

ICE BSD, 17th of October 2019

“I declare tourism asthe

leading sector.

Tourism as a leading sector is

a good news, and all other

Ministries must support

tourism development”.

Ministry of Tourism of Republic Indonesia

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INDONESIA VISION SPEECH, JULY 14 2019

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The elected Indonesian President, Joko

Widodo, in his Indonesian Vision Speech,

Sentul, July 14, 2019

FIRST, we will continue to build

infrastructure! We have built a

large infrastructure. Going

forward, we will proceed more

quickly and connect the large

infrastructure, such as toll roads,

trains, ports, and airports with

people's production areas. We

connect with small industrial

zones, connect with Special

Economic Zones, connect with

TOURISM AREA

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Tourism As The Core Economy Of Indonesia

Indonesia’s tourism has many competitive advantages and comparative advantages:

1. Tourism is the largest contributor to foreign exchange earnings

By 2019, tourism sector is forecasted to make the largest contribution to foreign exchange earningswith a total contribution of approximately 20 billion U.S. dollars.

The impact of foreign exchange earnings can be immediately felt by the whole societies.

2. Best in the region

By 2019, Indonesia’s tourism is targeted to be one of the best in the region even surpassingASEAN.

Our main competitor is Thailand that already made a total contribution of more than 40 billion U.S.dollars to its foreign exchange earnings in tourism.

3. Country Branding Wonderful Indonesia

Country Branding Wonderful Indonesia ranks 38th in its travel and tourism competitiveness index,surpassing Malaysia’s country branding Truly Asia Malaysia (ranks 47th) and Thailand’s countrybranding Amazing Thailand (ranks 72rd).

Country branding Wonderful Indonesia reflects the Positioning dan Differentiating of Indonesia’stourism.

BREAKING NEWS … !!!Bangga! Indonesia Peringkat ke-6 Negara Terindah di Dunia

[ sumber : Rough Guides ]

https://travel.detik.com/travel-news/d-4409466/bangga-indonesia-peringkat-ke-6-negara-terindah-di-dunia

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Jakarta - Sebuah situs pemandu perjalanan asal Inggris, Rough Guides melansirdaftar 20 negara terindah di dunia. Indonesia berada di 10 besar, peringkat 6!

Rough Guides merupakan buku dan situs pemandu perjalanan asal Inggris. Sejakdari tahun 1982, Rough Guides sudah menjadi rekomendasi para traveler duniakhususnya dari Eropa.Pemilihannya berdasarkan pilihan para pembaca. Hasilnya, didapatilah peringkat20 besar negara terindah di dunia tersebut.Skotlandia menempati peringkat pertama, sebagai negara dengan destinasilengkap. Dari pesisir pantai, kastil-kastil tua yang bersejarah sampaipegunungannya begitu indah.Bangganya, Indonesia berada di peringkat 6. Bahkan, hanya 3 negara dari Asiayang masuk dalam daftarnya. Selain Indonesia, ada India di peringkat ke-13 danVietnam di peringkat ke-20.

"Indonesia mengesankan dengan lanskap alam dan keberagaman budaya. Negaradengan 17.508 pulau ini punya keanekaragaman flora dan fauna yang luar biasa,makanan, adat istiadat dan 500 bahasa. Bali dikenal dengan kuil dan destinasipeselancar dunia, Lombok dengan pantainya dan Kalimantan adalah tempatuntuk melihat orangutan di alam liar," puji Rough Guides

OUTLINE

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1. Indonesia Tourism Performance

2. Formulation and Implementation Strategy

3. 10 New Bali + 1 Main Tourism Destination

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1. Indonesia Tourism Performance

INDONESIA INTERNATIONAL VISITOR GROWTHVS REGIONAL AND GLOBAL MARKET 2018

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ASEAN, Growth : 7,4 %

World, Growth : 5,6 %

Indonesia, Growth: 12,58%

Indonesia 12,58 % (January – December 2018)Vietnam 19,90 % (January – December 2018)Malaysia -0,45 % (January – December 2018)Singapore 6,21 % (January – December 2018)Thailand 8,28 % (January – December 2018)

Source: Countries’ Own Statistics

Ministry of Tourism of Republic Indonesia

Foreign Tourist Growth 2009 - 2018

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Year Amount of Foreign

Tourist (Million)

2009 6,32

2010 7,00

2011 7,64

2012 8,04

2013 8,80

2014 9,43

2015 10,23

2016 11,52

2017 14,04

2018 15,81

Compound Annual growth rate (CAGR) of the number of foreign tourists has increased, from 9% in the 2009-2013 period to 14% in the 2014-2018 period.

Source: Badan Pusat Statistik 5.000.000

6.000.000

7.000.000

8.000.000

9.000.000

10.000.000

11.000.000

12.000.000

13.000.000

14.000.000

15.000.000

16.000.000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CAGR : 9%

CAGR : 14%

: number of foreign tourist

Ministry of Tourism of Republic Indonesia

Foreign & Domestic Direct Investment Growth 2009 - 2013

10

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FDI DDI Total

CAGR: 15%

CAGR: 25 %

Compund Annual Growth Rate from both Foreign Direct Investment and Domestic Direct Investment in Total has increased from 15% during 2009 – 2013 period to 25% during 2014 – 2017 period.

Year

Foreign Direct

Investment

(USD 1000)

Domestic

Direct

Investment

(USD 1000)

Total

Investment

(USD 1000)

2009 422,26 51,65 473,91

2010 448,7 752,5 1201,2

2011 453,11 119,16 572,27

2012 1241,01 168,95 1409,96

2013 685,26 144,42 829,68

2014 719,285 199,53 918,815

2015 769,63 300,18 1069,81

2016 1258,6 179,27 1437,87

2017 1363,92 475,26 1839,18

2018 952,95 655,7 1608,65

TOURISM FOREIGN EXCHANGE EARNINGS

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TOURISM SECTOR’S CONTRIBUTION TOWARDS NATIONAL GROSS DOMESTIC PRODUCT (GDP) 2018

Sumber : Economics Research, Bangkok Bank, May 2019

Tourism Contribution

towards Indonesia’s

GDP 2018 :

5,25 %

Tourism Contribution

towards Thailand’s

GDP 2018 :

12,30 %

Tourism Contribution

towards ASEAN’s

GDP 2018 :

5,90 %

Tourism Contribution

towards World’s GDP

2018 :

10,4 %

Sumber : ; Economic Impact Research, WTTC, 2018

Sumber :Kemenpar 2019

Sumber : Travel & Tourism Report WTTC, 2019, via goodnewsfrom indonesia.com

INDONESIA'S TTCI WEF PERFORMANCE GROW POSITIVELY 2008 - 2019

Related to Competitiveness Index, Indonesia has improved significantly

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Ministry of Tourism of Republic Indonesia

80 81

7470

50

42 40

3,70

3,80

4,004,03 4,04

4,16

4,30

3,40

3,50

3,60

3,70

3,80

3,90

4,00

4,10

4,20

4,30

4,400

10

20

30

40

50

60

70

80

90

2008 2009 2011 2013 2015 2017 2019

Rank Score

SCO

RE

INDONESIA COMPETITIVENESS INDEX IN ASEAN

Source : World Economic Forum (WEF), 2019. : Top 3 (Rank) : Bottom 3 (Rank)

INDEX - SUBINDEX – PillarsINDONESIA SINGAPORE MALAYSIA THAILAND VIETNAM PHILIPPINES LAO PDR CAMBODIA

Rank Rank Rank Rank Rank Rank Rank Rank

TRAVEL & TOURISM COMPETITIVENESS INDEX 40 17 29 31 63 75 97 98

ENABLING ENVIRONMENT 72 7 34 63 73 93 92 106

Business Environment 50 2 11 37 67 80 75 122

Safety & Security 80 6 34 111 58 135 83 102

Health & Hygiene 102 60 75 88 91 94 100 108

Human Resources & Labour Market 44 5 15 27 47 37 67 95

ICT Readiness 67 15 44 49 83 82 112 101

T&T POLICY AND ENABLING CONDITION 4 2 11 42 79 53 83 78

Prioritization of Travel & Tourism 10 6 62 27 100 56 64 44

International Openness 16 3 10 45 58 65 87 66

Price Competitiveness 6 102 5 25 22 24 20 49

Environmental Sustainability 135 61 105 130 121 103 122 139

INFRASTRUCTURE 71 3 35 32 87 59 95 101

Airport Infrastructure 38 7 25 22 50 59 90 91

Ground & Port Infrastructure 66 2 27 72 84 93 110 111

Tourist Service Infrastructure 98 36 57 14 106 85 89 93

NATURAL & CULTURAL RESOURCES 18 66 31 21 26 46 88 72

Natural Resources 17 120 37 10 35 36 70 66

Cultural Resources 24 38 37 35 29 61 111 76

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Pariwisata Danau Toba Maju, PAD Samosir Naik 81%1. Pajak hotel naik 351%2. Pajak restoran naik 84%3. Pajak hiburan naik 8.830%4. Retribusi jasa usaha naik 63%

CEO Commitment

Pariwisata Banyuwangi 1. Pertumbuhan ekonomi tahun 2017 Banyuwangi melampaui pertumbunan ekonomi Prov

Jawa Timur dan Nasional yaitu sebesar 5,6%.2. Total belanja wisatawan di Banyuwangi sebesar Rp. 7,7 Triliun dan 98.970 orang Wisman

dan 4,8 juta orang Wisnus.

2. FORMULATION AND IMPLEMENTATION STRATEGY

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Top 10 Priority Programs of Ministry of Tourism in2018

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Branding / PR-ing

Top 10 Origination

Top 3 Main Destination

(15 Destination Branding)

Develop 10 New Priority Tourism

Destinations

Certified Human Resources in Tourism &

Tourism Awareness Movement

Tourism Investment Growth

Crisis Center Management

Digital Tourism (E-Tourism)

63% of all travel is now researched,

booked bought and sold online

50% of online travel sales involved more

than one device

Ex: 200+ Reviews per minute posted on

TripAdvisor

Homestay

Ministry of Tourism contributes in building

100.000 homestay as part of 1million

housing program

President Jokowi is planning to develop

rural tourism concept

Air Accesibility

Air Connectivity is a Critical Success

Factor for boosting inbound tourists arrival

initiatives, since 75%-80% of foreign

tourists arrived using air transportation Oth

ers

Priority

Pro

gra

ms

Top 3

Priority

Pro

gra

ms

TOURISM DEVELOPMENT STRATEGY

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TOURISM

DEVELOPMENT

STRATEGY“3A”

ATTRACTION 9 Portofolio

Tourism Strategy

ACCESSIBILITY Government

Leading

AMENITY Private Sector

Leading

Pentahelix

Model

Academic

(Conceptor)

Business

(Enabler)

Community

(Accelerator)Government

(Regulator)

Media

(Catalisator)

BUSINESS ASLOCOMOTIVE

TOURISMTRANSFORTATIONS

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Role of ABCGM – Indonesia

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DEVELOPMENT OF 10 PRIORITY TOURISM DESTINATION AND NATIONAL STRATEGIC TOURISM ZONE

IDR 500 TRILLION / USD 35 BILLION

TOURISM INVESTMENT

IDR 205 T/USD 14 B

TOURISM FINANCINGIDR 295 T/ USD 20 B

GOVERNMENT INVESTMENT

IDR 170 T/ USD 12 B

PRIVATE INVESTMENTIDR 35 T/ USD 2,5 B

GOVERNMENT INVESTMENT

IDR 10 T / USD 700 M

PRIVATE INVESTMENT

IDR 285 T/ USD 20 B

Supporting Tourism InfrastructureIDR 170 T

Financial Government Institution: LPEI, PT SMI, PT SMF, PT PII, PINA, LPDBIDR 10 T / USD 700 M

Bank Financial Industry IDR 230 T / USD 16 B

Non Bank Financial IndustryIDR 10 T / USD 700 M

Capital MarketIDR 45 T / USD 3 B 20

1

2

4

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2. Konsep Dasar Pengembangan KEK

The basic concept of SEZs is to give

facilities for the area preparation

which the location has the access to

the global market (accessibility to the

port or to the airport)

The region is given certain incentives

and deregulation of the stages

needed to increase competitiveness

with surrounding countries. Increasing

competitiveness is expected to attract

investors to invest in the region.

CRUCIAL ROLE ofSPECIAL ECONOMIC ZONES (SEZs)

INDONESIA SPECIAL ECONOMY ZONE (SEZ)

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3. 10 New Bali + 1 Main Tourism Destination

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24Sumber: https://investor.id/archive/penetapan-10-destinasi-prioritas-adalah-amanat-presiden

Determination of 10 priority destinations is the mandate of President Jokowi, through the Cabinet Secretariat letter Number B 652 / Seskab / Maritim / 2015 dated November 6, 2015 concerning the President's Directive on Tourism and President's Directive at the Cabinet Meeting Early Years on January 4, 2016.

Determination of 10 Priority Tourism Destinations by the President

THE DETERMINATION OF 10

PRIORITY TOURISM

DESTINATIONS IS THE

MANDATE OF THE PRESIDENT

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QUALITY TOURISM DIVERSIFICATION

"... regarding the development of priority

tourism destinations, three years ago it was said that 10

new Bali will be built but now we only give priority to

5 locations first ...“

President Joko WidodoJakarta 15 July 2019

NUMBER OF EMPLOYMENT

Million people

10,112,8

2014

2018

VALUE ADDED FROM TOURISM

TOURISM EARNINGS(Miliar USD)

11,119,2

20142018

NUMBER OF DOMESTIC VISITORS

Million trips

251,2303

20142018

NUMBERS OF FOREIGN VISITORS

Million visits

9,4315,8

2014

2018

The 5 locations are Toba, Borobudur, Mandalika, Labuan Bajo, and Likupang.

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PRESIDENT INSTRUCTION

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“Infrastructure In 5 Super Priority Destinations Must Be Completed In 2020.”- Joko Widodo, July 15th 2019

Limited Cabinet Meeting July 15th 2019

Spatial PlanningSpatial Planning and Control1

Access and Connectivity• Terminal, airport, runway. • Road connectivity to tourist

destinations.• Dock and Harbor

2Facilities at theTourism Destination

Structuring of street vendors , small restaurants and toilets (4 star standard).

3Human Resources• Training• Work Culture and Hospitality4

Local Products• Market and Art Market• cultural dance5 Promotions

• Integerated Large-Scale Promotion

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PRESIDENT INSTRUCTION

Danau Toba Tanjung Kelayang Borobudur Wakatobi Morotai

Tanjung Lesung

Kepulauan Seribu & Kota Tua

Bromo TenggerSemeru

MandalikaLabuan Bajo

Flores

5 SUPER PRIORITY DESTINATION(10 Priority Tourism Destination + 1 and 5 Main Tourism Destination)

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TanjungGunung

Sungai Liat

Likupang

Sukabumi Pangandaran

Main Tourism DestinationPriority Tourism Destination

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PROJECT MANAGEMENT – 10 DPP27 September 2019

29Ministry of Tourism of Republic Indonesia

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