JAKARTA (TheInsiderStories) – Indonesian government welcome foreigner to invest in the aviation sector to help the country’s tourism program. The policy also aims to fulfill service availability for consumers based on safety, security, and flight services standards.
According to Transportation minister Budi Karya Sumadi today (12/06), the appetite of foreign investors in this sector quite high. He said, investors’ high interest marked in Labuan Bajo airport project where more than 20 investors submitted their interests.
Sumadi added, the co-operation will be in the utilization of public private partnership and status change from the airport organizer unit to public service agency. Partial co-operation will also occur in management and operational areas.
“The rapid growth of air traffic due to a shift in consumption patterns has led to a large amount of resources being needed. This, of course encourages not only the government, but also the private sector to participate in creating and innovating both in terms of management and operations,” said Sumadi.
By opening cooperation with foreign companies, the government will also try to provide alternative funding schemes, enabling it to suppress the State budget. Other than that, the minister also highlighted the importance of the aviation sector in facing industry revolution 4.0.
The phenomenon must be an opportunity for the aviation industry to grow faster by prioritizing digital-based services.
Sumadi has stated, the Indonesian government plans to build 10 new airports to support the 10 priority tourism destinations set up by tourism ministry. As the home of more than 17,000 islands, Indonesia faces a lack of adequate infrastructure to facilitate access to tourism destinations.
The lack of inter and intra island connectivity means that a number of targets set by government–including 20 million foreign visitors and Rp275 trillion (US$18.96 billion) revenue by 2020–looks impractical.
Still, Indonesia is included in the top 20 fastest-growing travel destinations in the world, welcoming 14.03 million visits in 2017, or an increase of 21.88 percent over the previous year 11.51 million visits, based on Stastitic Indonesia report.
However, the number is only able to reach 93.53 percent of the total target of foreign tourists visiting 2017 as much as 15 million visits. Since last year, Tourism ministry has launched hundreds of Tour Festival created new tourist destinations to attract tourists come to the country.
Increasing numbers of foreign visitor arrivals, combined with 5 percent GDP, has led to a growing demand for hotels, condominium hotels (which combine features of apartments and hotels), as well as conference and exhibition venues. Bali and Jakarta have already seen a large influx of investment in recent years, leading to excessive supply.
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