Indonesia makes no secret of its economic ambitions. The country’s president Joko Widodo (Jokowi) was elected to a second term this past May, and within a matter of weeks, the Indonesian government’s Ministry of National Development Planning announced that it would target increased economic growth of around six per cent per year.
One area where Indonesia is looking to boost GDP is the tourism industry, which is among its most promising growth sectors. Tourism is big business in Indonesia, and a major area of focus for the government as the influx of visitors, particularly from Malaysia and China, continues to grow.
In 2016, during Jokowi’s first term, he recognised the importance of tourism and spent time seeking overseas investment to help execute his government’s plan to create 10 new Balis.
Given the global reputation and success of Bali, this seemed a sound strategy. Yet, in the two years since the plan was announced, the initiative has struggled to get the traction many would have liked. In particular, the lack of clarity over specifics of the plan is causing potentially damaging frustration in some stakeholder sectors.
But looking at the scale of the government’s ambition from an engineering standpoint, it’s easy to understand why more detailed plans have yet to be published. The size and complexity of the task can make it seem impossible to know where to begin, but at a fundamental level, it starts with planning and vision.
In this article, we’ll put an engineering lens over some of the biggest challenges for the expansion of Indonesia’s tourism sector and discuss some of the major considerations for the country in bringing the plan to reality.
Perfecting the landscape
Indonesia is blessed with some of the most beautiful and unspoilt islands in the world, and not only that, plenty of them. While this naturally makes them ideal as tourist destinations, their remote location, coupled with almost no existing infrastructure, makes it a daunting task to transform them into easily accessible hot spots. This is where a solid approach to master planning is required. Creating a clear and targeted plan for developing new resorts is a good start – but what are some of the key considerations? Here, we’ll look at some of the most important, including water, power, climate, and investment.
From an engineering perspective, when it comes to infrastructure, we need to recognise that even the most basic set-up is lacking across wide parts of Indonesia. In some cases, surprisingly so.
Water
Consider, for example, that the national capital Jakarta does not have proper water infrastructure (although the process of creating one has begun). The majority of the city’s water is drawn from boreholes and is directly linked to the city’s much-publicised sinking. To grasp Jakarta’s water issues is to truly understand Indonesia and the infrastructure challenges it faces in delivering the next level growth for its current and future towns and cities.
Power
In addition to the water challenge, there is the issue of providing a stable and secure power supply. This remains an ongoing challenge, with the country’s entire power infrastructure needing substantial investment if it is to support economic growth. In the remote locations targeted for development, ensuring there is an established power infrastructure will be one of the top priorities. While luxury hotel groups will need little persuading of the attraction and potential of Indonesia’s islands, they will not begin work on multi-million-dollar resorts until they can see a steady and reliable power source established.
The good news is that the energy mix continues to evolve, with affordable and environmentally-friendly options playing a bigger role than ever before. For example, elsewhere in South-east Asia, Aurecon helped deliver the Dau Tieng 1 and 2 solar power plants in Vietnam, bringing much-needed electricity to two nearby cities. At 420 MW, it’s currently the largest solar power plant in the region and was built in just under a year.
Creating these types of independent microgrids is an attractive option for many remote locations, with solar, wind, hydro or waste-to-energy technologies capable of pairing with energy storage and more traditional power sources to ensure necessary capacity levels are met.
An example of this principle at work can be seen at the 5MW Battery Energy Storage System in Alice Springs, Australia, where Aurecon was the technical advisor from development to implementation. It is one of the most innovative grid-connected storage solutions available and serves a remote location similar to that of the islands Indonesia aspires to develop. Incorporating a higher level of renewable power into local developments offers the added benefit of making it easier to attract visitors and investment from large global companies, including luxury hotel groups.
Geology and climate
For the issue of geology and climate, additional considerations are needed for Indonesia. Natural dangers such as earthquakes, volcanoes and extreme weather events present challenges for engineers all over the world, but the unique local conditions of Indonesia require extra attention. At Aurecon, we have a long history of engineering resilient assets for even the most volatile of environments, and we understand this work is not only about looking to the past but designing for an unknown future. As technology and engineering design advances, so does our ability to create structures that provide safeguards and early warning systems to alert guests and inhabitants.
Investment
Another consideration around development and project management is finance. Although Indonesia has a large population of over 260 million, the country is short of income. It still functions primarily as a cash economy, so its tax income to GDP ratio is relatively low and that means private sector and international investment will be required to drive the proposed tourism development. The most likely solution will be a public-private partnership (PPP) approach, with much coming via foreign direct investment (FDI).
However, there are still many elements to resolve around this, as PwC noted in its latest Indonesian Infrastructure report. Some of the key challenges include an uncertain legal framework for projects, procurement processes that are not always clear and transparent, and the fact that different public organisations may be uncoordinated and have conflicting goals.
On top of this, many public agencies do not have the budget for the high-quality project preparation required from international consultants to bring these developments to life. As well, there remains a high regulatory burden on companies operating or constructing projects, and this naturally has a negative impact.
Yet despite all that, we can already see evidence of some initiatives that will help deliver higher FDI levels. For example, an announcement earlier this year of an increase in the tax threshold for buying housing in Indonesia is certainly a step in the right direction. If similar measures follow and we see a stronger PPP focus at a governmental level, then the issue of financing could become much smoother in future.
Master planning for success
Ultimately, the success of any future development is going to come down to having the right approach to project management, and especially, master planning. An important element of this will be the practice of zoning and staging. This refers to completing work in specific zones and stages to deliver the earliest possible usability, while keeping in mind plans for future expansion. It’s important to consider this, because it is essential to achieving the financial viability of projects and building momentum around the tourism focus.
Let’s consider the example of a new resort town. In addition to hotels and residential blocks, there may be golf courses, water parks, retail malls, and more. Sound master planning will assess the correct process for bringing this collection of individual developments to life, understanding the local market and the clients who have the resources to develop which assets at which time. At Aurecon, we have experience in this process at countless locations, including, for example, Yas Acres in the Middle East.
The interesting part about zoning and staging is that plans change frequently, or governments and developers don’t know exactly what they want in one area until another is complete. So, agility and flexibility are key. For companies working in this area, it’s important to never consider the job finished simply because the final invoicing is complete.
Instead, it is vital to keep talking to clients about potential next stages and looking at concept designs or environmental studies to determine the best options. Every discussion about future development should start with identifying the target and what is needed to achieve it.
Sustainability matters
Sustainability remains top of mind in all business sectors, and engineering is no different. Perhaps most interestingly, when it comes to construction and development, in many cases, the funding available (particularly western financers) is easier to come by for projects that can demonstrate their sustainable credentials.
This issue is particularly relevant with regard to power and energy, one of the core pillars of infrastructure development. In this case, the issue is becoming increasingly consumer-driven. For example, in Bali, locals are taking a stand against the expansion of a local coal-fired power plant and the drive is for a greater percentage of the energy mix to come from renewable sources.
Yet at the same time, Bali remains susceptible to power outages so striking the right balance requires careful planning and ongoing assessment, particularly given the island is still reliant on neighbouring Java for part of its power requirement, delivered via underwater cables.
When it comes to considering what are the most reliable power supply options for new, remote resort locations, there is no single answer. Often, there will be no existing power supply, with local people relying on diesel generators instead.
While investors will be attracted to supporting new renewable energy initiatives, it is unlikely these can be built at sufficient scale to meet demand. It is likely we will see more interest in LNG-based power plants, and even future fuels like hydrogen, given the fact they offer lower emissions levels while still offering capacity similar to coal-fired power plants.
Bringing 10 new Balis to life
While there are undoubtedly many challenges ahead in developing Indonesia’s tourism sector, the overall outlook is hugely positive. There’s no doubt the country has the potential to become one of the world’s leading tourist hot spots. And with clever engineering planning and a strong focus on sustainability, we could see Jokowi’s vision for 10 new Balis come true.
As someone who has multiple tabs open at the same time in my mind all day every day, Taiko drumming forces me to shake off all concerns and focus only on the rhythmic rise and fall of my arms as I attempt to keep pace with my instructor. My Taiko crash course at Tokyo’s Taiko-Lab was led by an effervescent young man who instructed me on several short sequences that were eventually combined to form a complete heart-pounding, bicep-straining performance. Here, take my pen. I’m ready to move from editor to Drum Tao extraordinaire!
My most memorable trip this year was to Rotorua, a town on New Zealand North Island. Despite having been there a couple of times, the city always manages to surprise with new experiences, thanks to the ever-creative local travel operators and authorities.
What makes any travel experience memorable is having the company of like-minded companions, which was what I enjoyed when I visited Sky Mirror in Kuala Selangor. I visited the attraction with three other like-minded friends who shared a similar interest of looking for Instagrammable places, before ending the day’s tour with a hearty meal. The full day experience gave us a chance to catch up and rekindle friendships, as we had not been in touch for quite some time. And the best part? We all went home with gorgeous pictures.
Exploring Indonesia’s Komodo National Park was the icing on my travel cake this year. Diving into clear waters teeming with colourful fish, I saw a manta ray glide by for the first time (I squealed into my regulator), countless hawksbill turtles munching on coral, a few moray eels playing hide-and-seek, and several white- and black-tipped sharks sleeping on the ocean floor. Back on land, watching the sun kiss the land from the peak of Padar Island – illuminating the rocky outcrop, turquoise waters, and sandy beaches in the process – took my breath away.
I tried out skiing for the first (and probably, last) time at Jeongseon’s High 1 Resort, the highest elevation ski resort in South Korea, and it was memorable for all the wrong reasons. My ski coach, Aron, gave me a crash course in skiing before sending me out on the beginner’s course. Barely 1km into the course, my totally unathletic self had already crashed into everything from the orange fencing to a ski patrol house and uh, three Korean kids. Aron sighed a bit too loudly as he grudgingly lifted me off the ski slope for the umpteenth time. I felt like David trying to conquer the gently-sloping Goliath. When I finally emerge not-so-triumphantly – it took me 1.5 hours to conquer the 2km course – I was perspiring like I was back in sunny Singapore. For trepid first-time skiers, here’s a tip: Stick to dry running on the bunny slopes before battling the big bad beginner’s course.
The Sabre Technology Exchange in Las Vegas gave me the perfect opportunity to hop on the hot activities trend, so I packed into a van with a local land-sailing instructor and drove out to Ivanpah Dry Lake in California. We spent the afternoon racing through the desert against a backdrop of mountains and mirages – definitely the best kind of experience that could come out of getting into a stranger’s van!
A recent trip to Hong Kong, my safe and happy home for nine years in the 90s, was an emotional journey. I attended the wedding of James Lam, whom I have seen grow from a young boy joining us in watching Chinese concerts to a young man committed to farming. James is the youngest son of Via Vai Travel owner Sef Lam, an industry contact who has since became a close friend over the decades. It was a happy occasion catching up with the Lam family and meeting old TTG Asia friends like Hong Kong correspondent Prudence Lui and former TTG Chinese editor Jenny Wong.
I experienced a once-in-a-lifetime journey on The Eastern and Oriental Express in early September. During the 50-hour train ride from Singapore to Bangkok, the experience was beyond my expectations, thanks to the brand’s top-notch software and hardware. As the train was only 50 per cent full, I enjoyed even more attentive services from my Thai butler and other service staff. Having acclaimed French chef Didier Corlou onboard took guests’ satisfaction to the next level because the ‘spice atelier’ excited our tastebuds with his best of Vietnamese and French cuisine, serving up a ‘four-hand’ dinner and signature afternoon tea.
A week on the Indonesian archipelago of Karimunjawa in September blew my mind. Days were spent exploring the smattering of coral-fringed deserted islands with powder-white sand lapped by turquoise waters and an almost tourist-free main island teeming with nature, lush mangroves and rolling hills. The area’s pristine marine parks also delivered my first unforgettable foray into the underwater world with a day scuba diving among adorable clownfish, corals in rainbow colours, and curious parrot fish.
For Jakartans, spending a weekend in Puncak may sound boring, but my Puncak trip in May was fun because I got to re-experience attractions I had visited as a kid, such as taking in sights of beautiful flowers of diverse origins in Taman Bunga Nusantara and the rolling tea plantations in Puncak Pass. I also visited other popular attractions, such as the replica of a hobbit house at the Pinewood Lodge & Organic Farm Cisarua. Until I could realise my dream to travel to New Zealand, visiting a replica of a hobbit house was enough to make me happy. However, this spontaneous journey not only evoked memories of the past, but also reminded me of dreams that must be realised.
The most memorable activity this year is celebrating a presidential election because this was my first time voting. In the previous two elections, I did not cast my ballot because I was out of town to do a quick count for a pollster. I later regretted after realising that my salary could not compensate for this very important moment. Therefore, since last year, I was committed to show up to vote and promised myself to reject any assignments on the voting day in April. I left Jakarta two days before the big day, taking a train to go back to my hometown of Bondowoso, a small city in East Java. The 17-hour road trip was exhausting, but well worth the effort because my favourite candidate won.
Though the Maldives is always a favourite destination of mine for work and recreation, it has often been a case of more work than play and not enjoying the multitude of attractions this destination offers; even the simple luxury of sitting in an over-water villa and absorbing the sunset often escaped my attention. During my June visit, I simply sat down outside the villa watching as the orange rays of the sun set on the horizon, sipping a beer for comfort. I was so mesmerised by the amazing sight that I forgot to take pictures. Well, perhaps next time!
My visit to Siddhabali Temple, located in the Kotdwara town of the Indian state of Uttarakhand, was not just memorable because of my devotion to Lord Hanuman but also due to its tranquil surroundings. The hilltop temple is surrounded by greenery which adds to its beauty and calmness, and one can see the banks of the Khoh River from its premises.
The most memorable travel experience this year would be the Vespa tour that I had in Hanoi. As I had never been on a motorbike before, I was so fearful in the beginning that I even said my prayers as the motorbike took off. The Vespa zipped through Hanoi’s traffic while cars drove past in all directions, before going down the narrow lanes between buildings. During the ride, I also got to see houses and shops tucked beside a railway track, offering me a glimpse of local lifestyles. It was an exciting and eye-opening experience, and I thoroughly enjoyed the motorbike tour.
My most memorable travel experience would be our company retreat in Mauritius this May. As part of our company teambuilding programme, we got to drive a quad bike through some of the most beautiful places on the island, from lush sugarcane plantations to Pont Naturel – a volcanic rock structure set like a bridge over roaring turquoise sea water below. Overall, Mauritius impressed me as a scenic and interesting country that I would like to bring my kids to visit one day.
Naritasan Omotesando is a charming street lined with traditional Japanese houses and quaint shops selling interesting Japanese food and handicrafts. It was one of the memorable places that I stumbled upon by chance during my recent visit to Japan. I love the variety of unique products for sale. The streets were amazingly clean with beautiful blooms of flowers lining most shops. Shinshoji Temple in the area has an amazing Japanese garden filled with colourful flowers, a discovery I made during a leisurely walk around its grounds.
