Home News World Bank Provides Loan US$300M for Indonesia’s Tourism Projects

World Bank Provides Loan US$300M for Indonesia’s Tourism Projects

Various Indonesia's Product Offered to Tourists at IMF-WB Meeting in Bali - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – World Bank will provide loans US$300 million for Indonesia Tourism Development Projects (ITDP) across the archipelago, said one government official in a written statement this week. The Public Works and Housing Ministry as the manager of the projects said its ready to meet all the conditions needed for the loan.

According to Head of the Regional Infrastructure Expansion Board at the ministry Hadi Sucahyono said the loan signing is scheduled to take place on Oct. 22 and the effectiveness is to follow on Nov. 1.

He said, around US$22 million of the loan would be used to facilitate development of integrated and sustainable tourism industry, $239.6 million for improvement of road quality and basic service access in selected tourist areas, $37.1 million for local participation in tourism industry and $1.3 million for creation of conducive environment to attract involvement of the private sector in tourism development.

Earlier, the ministry said it guaranteed the readiness of infrastructure in 12 priority strategic areas of national tourism to ensure that the target to chalk up 20 million visits by foreign tourists in 2019 could be a reality.

Indonesia aimed to created “10 New Bali” tourist destinations such as Lake Toba, Tanjung Kelayang, Tanjung Lesung, Pulau Seribu, Borobudur, Bromo-Tengger-Semeru, Mandalika, Wakatobi, Labuan Bajo, Morotai, Toraja, and Mandeh.

To overcome the problem of the current account deficit (CAD) in the trade balance, Coordinating Minister for Maritime Affairs (CMMA) Luhut Binsar Panjaitan has made eight decisions to boost exchange rates revenues from tourism sector. He targeted the foreign exchange revenues from tourism sector of US$17.6 billion in 2019 and $28.5 billion in 2024.

The number of foreign tourists itself is targeted at 25 million to 30 million in 2024. Regarding on financing access, it has been agreed that this year the CMMA will establish general provisions for People’s Business Credit in the tourism sector.

Related to the strengthening of connectivity, it was agreed that the status of Banyuwangi Airport would be designated as an international airport by the Ministry of Transportation.

In addition, the operation of Yogyakarta’s new airport is targeted to start in 2019, and the Ministry of Transportation will build a railway line that is connected to the airport.

Encouraging the tourism sector itself is a way to overcome the problem of the current account deficit, in addition to other policies pursued by the government, namely the use of 20 percent biodiesel mixture (B20), increased exports in the mining sector, and optimization of domestic industries.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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