Epic infrastructure developments underway for Indonesia

INDONESIA needs an additional 120,000 hotel rooms, 1,000 travel companies and 1,000 recreational parks of international standard by 2019 to provide investors with the opportunity to inject money into the country’s economy.

Speaking at the opening of the 2nd Annual Southeast Asia Hotel & Resort Summit in Jakarta yesterday, Indonesian tourism minister Arief Yahya said: “Currently we are encouraging the development of 19 Tourism Investment Areas, consisting of two Special Economic Zones for Tourism, which are Tanjung Lesung (Banten) and Mandalika (Lombok), and also another 17 potential areas throughout the country.”

Apart from hotel, travel companies and recreational facilities, the government is planning to develop 100 dive operators, build 100 marinas, and open up 100 new special economic zones with incentives and benefits for investors by 2019; all of which require a total investment of US$7 billion, according to Arief.

He said: “Tourism is a strategic sector of the national economy, which when developed properly, can bring about a huge economic impact.”

Cross-sector development to improve accessibility and facilities in conjunction with the ministries for transport and public works is also on the cards.

The Ministry of Transportation will undertake the construction of 22 airport runway extensions, 19 new airports such as on the Anambas Islands, 22 new seaports, and upgrade existing seaports.

The Ministry of Public Works will set aside budget for the construction and improvements of roads leading to tourist attractions in the coming years.

Data from Indonesia Investment Coordinating Board shows tourism investment materialisation value reached US$684.9 million in 2014, 13.6 per cent higher than in 2013.

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