Gov’t to Set up Tourism Fund for Quality, Sustainable Tourism Development

President Jokowi chairs a limited meeting on the tourism financing ecosystem development, at the Merdeka Palace, Jakarta, Wednesday (10/04). (Photo by: PR of Cabinet Secretariat/Rahmat)

President Joko “Jokowi” Widodo has ordered his Cabinet to set up a tourism fund aimed at financing quality and sustainable tourism development.

“The President has urged relevant officials to set up a tourism fund that will support quality and sustainable tourism development such as high-quality international events, cultural festivals, sports activities, and MICE (meetings, incentives, conventions, and exhibitions),” said Minister of Tourism and Creative Economy Sandiaga Salahuddin Uno after attending a limited meeting on tourism financing ecosystem development at Merdeka Palace, Wednesday (04/10).

According to Sandiaga, tourism funds have been established in countries that make tourism development their top agenda including Singapore and Saudi Arabia.

“We will follow up on the President’s directive immediately,” he said.

Sandiaga also revealed that the Indonesian tourism fund will be established with a good governance approach concentrating on sustainable, high-quality, and eco-friendly tourism, and giving priority to the nation’s cultural assets.

“Through the financing ecosystem, we could gauge foreign tourists not only in terms of quantity but also quality, considering factors like their length of stay, spending on local MSMEs, and their potentials to generate business opportunities and employment in tourism and creative economy sectors,” he said.

The Minister also pointed out that the Government is reviewing potential funding sources for the initiative, be it from the endowment fund, tourism-generated foreign exchange, or other sources.

In this regard, the Government will also form a special team to assess these sources for sustainable funding and tourism sector improvement, he added.

“Sources of funding will be carefully reviewed to ensure its sustainability without burdening the State Budget and the tourists. We aim to strike a balance that enhances the quality and sustainability of our tourism sector,” he said, adding that various options will be decided soon, including the management of the fund, whether it will be under state-owned enterprises (SOEs) or Ministry of Finance.

“The management will be determined, either under the existing state-owned enterprise, namely the InJourney, or under established institutions like Ministry of Finance’s fund management organizations,” he remarked. (FID/UN) (RIF/RAS/EP)