Investor Presentaiton
Investment Landscape
Sustainable tourism and infrastructure present long-term
opportunities
•
With a contribution of almost 6% to national GDP and around 320m annual visitors prior to the pandemic,
Indonesia's tourism industry will remain an important target of investment
An upward trend in sustainable tourism prior to the pandemic signalled long-term opportunity
Sustainability-driven tourism expansion will translate into higher borrowing capacity and taxation inflows,
which can be re-invested to support long-term development of the sector and local communities
Domestic and international visits experienced robust growth in 2015-18
Infrastructure will remain a key regional development priority: Master Plan on ASEAN Connectivity 2025 focuses
on mobility of people, and efficient logistics and trade routes.
Related sectors are important for economic activity; with the Indonesian public sector historically providing half
of transport infrastructure funding, transport and telecoms accounted for over one-third of
infrastructure-related foreign direct investment (FDI) in 2020.
Infrastructure-related sectors
contribute 27.4% to GDP in 2020
350
300
250
200
150
100
50
0
2015
2016
2017
319.2m
20
15
Construction
10
Transportation,
storage & telecoms
5
Mining
Domestic trips (m)
Electricity & gas
0
2018
International visitors (m)
Other activities
Public funds accounted for half of
Indonesia's transport infrastructure
funding in 2015-19*
10.7%
Public
Private
19%
9%
State-owned
6.4%
enterprises
72.7%
31%
*according to the second edition
of PwC's annual Indonesian
infrastructure report
50%
Sustainable
tourism*
Income 2016 $13.6m +59% Since 2011
Total investment, 2015 $11.7m +354% Since 2005
*tourism related to sustainability standards as defined by the Ministry of Tourism
Sustainable tourism considers current and future
economic, social and environmental impacts
Aims
Optimal use of environmental resources
Respect for socio-cultural authenticity of host
communities
Viable, long-term economic operation
PwC
OBG ESG Report
OXFORD
BUSINESS
GROUP
Utilities, transport and telecoms accounted for the majority of infrastructure-related FDI
in 2019-20
2019
Indonesia has commitment to sustainable tourism
development
2020
Law No. 10/2009 on Tourism
0
500
1000
1500
Sustainability must embrace natural, social, economic
and cultural ecosystems
2000
$ M
2500
3000
3500
Long-Term National Development Plan (RPJPN) 2005-25
Includes provisions to develop tourism alongside
environmental protection
Mining
Construction
Electricity, gas &
water supply
Transportation,
storage & telecoms
Indonesia's funding needs for 2020-24 were estimated at Rp6.4trn by Ministry of National Development Planning
(BAPPENAS) in 2019.
Enhanced transportation and logistics, in line with ASEAN's agenda, will lower costs, improve reliability and access,
and potentially enable digital solutions to maximise productivity.
Sources: ASEAN; MOT; OECD; Statista; UN WTO; UN SDG; WEF
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