Remarks of President of the Republic of Indonesia during the Launching of the State-Owned Holding for Tourism and Supporting Sectors – the Injourney – in the Special Economic Zone (SEZ) of Kuta Mandalika, Central Lombok Regency, West Nusa Tenggara Province, January 13, 2022

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,
Good afternoon,
Peace and prosperity be upon us,
Om Swastiastu,
Namo Buddhaya,
Greetings of virtue.

Honorable Minister of State-Owned Enterprises and other ministers of the Indonesia Onward Cabinet in attendance,
Honorable Governor and Deputy Governor of West Nusa Tenggara and all ranks of Forkopimda (regional leadership coordination forum),
Honorable Commissioners and Board of Directors of SOEs, community leaders, and associations,

Distinguished guests.

It is true what Minister Erick said earlier that two years into the pandemic, the tourism sector experienced a very deep contraction. Before the pandemic, the tourism sector was the second largest foreign exchange contributor with a GDP of US$10 billion and could provide 13 million employment.

Therefore, we must face these conditions. We must not give up and we must use this as a turning point to make a leap. This is a momentum for restructuring; momentum for transformation, building a stronger and more resilient ecosystem.

As previously explained by Mr. Dony (Dony Oskaria, President Director of SOEs Holding for Tourism), there are so many companies that will be put under one holding, starting from those in charge of flights, airport management, and 120 hotels.

We have 120 hotels, meaning we already have the network. We  also have tourist areas such as Nusa Dua, Mandalika, Likupang, Borobudur, and Taman Mini.

Also for handicrafts, the knick-knacks, we have Sarinah. If we put them under one holding, it will become a great power. And I believe, God willing, Mr. Dony, with his long experience in this sector, will be able to do it. Moreover, issues that derail the progress of the tourism sector must be resolved immediately.

On connectivity issues, we must solve them immediately.

On infrastructure problems, in locations where additional infrastructures were needed, we must solve them.

Likewise, for other problems, including in terms of governance and management of tourism SOEs, we hope these problems do not reduce our chances to leap forward.

Ladies and Gentlemen,
I believe it is necessary to re-structure tourism SOEs because so far, I have seen SOEs with many subsidiaries, which also have many subsidiaries, are engaged in the tourism sector and its supporting sectors. which are also very large in number, moving from upstream to downstream.

I said earlier, those in charge of flights, airport services, hotels, attractions, management of tourist destinations, and retail.

We have everything.

But what we have seen in the past, these SOEs and their subsidiaries, which also have their subsidiaries, each of them runs independently, not consolidated, making them weak. If we consolidate them in this holding, it will become a great strength. Because they are small, they run independently, not integrated, not connected to each other. Because they run separately.

Not to mention matters regarding management, the management is far behind that of private companies even though I notice that the assets are good. We have good assets with premium strategic locations but they are not well-managed.

Therefore, as previously stated by Minister Erick, in 2024, What is the estimated asset value? 260 trillion. I will take note of that.

Once again, even though the assets are good with premium, strategic locations, yet since  they are not consolidated, they are not efficient, they are not competitive, they are not powerful.

That is why, since the beginning, I have actually been mentioning this back and forth since seven years ago. I have ordered consolidation and restructuring. This is the key. And, Thank God, today, by establishing a state-owned holding for tourism and supporting sectors, our tourism management will, God willing, be carried out efficiently, integrated from upstream to downstream starting from the arrangement of flight routes, promotional contents, events, attractions, culinary, accommodation, to retail sales of souvenirs from our craftsmen, which of course have also been well selected.

I would also like to remind you that the re-structuring must make the holding agile and professional because the key is to make governance more efficient and simpler. Do not let new problems arise or transform old problems into new ones.

The key to moving forward is to improving the management, improving the governance because tourism potential is still wide open. The potential of our domestic market is enormous. Minister Erick said earlier that our domestic trip reached 330 million trips, 330 million. This is a huge potential. Do not let it be taken by other countries. It is still a long way for foreign tourist trips, reaching only 17 million trips although that is also important.

And in 2022, we will host international scale events. In March there will be MotoGP.  In November, there will be G20, as well as other big events that will turn the world’s attention towards Indonesia.

Therefore, we must make the most of this golden moment as well as possible to prepare 10 Super Priority Tourism Destinations and demonstrate clean, neat and professional destination management.

Finally, I order that the progress of the tourism sector be felt by the surrounding communities. If it can increase, improve governance, the surrounding environment should also benefit. And, immediately form a cross-sectoral ecosystem involving SOEs, private sectors, local communities and MSMEs in the regions. Give space and opportunity for the community to participate. This is crucial, to be a part of the progress of tourism in the regions, to be a part of the progress of our country, Indonesia.

This concludes my remarks on this auspicious occasion.

By saying bismillahirrahmanirrahim, I hereby launch the Injourney, a state-owned holding for tourism and supporting sectors today in Central Lombok regency, West Nusa Tenggara province.

I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.

(FI/EP)