Indonesia’s officials’ plans to create ‘10 new Balis’ will open up opportunities for Singapore investors. The Indonesia government has earmarked 10 destinations for development and projects that, by 2019, these places will draw 10 million tourists annually.

1. Lake Toba
2. Tanjung Kelayang
3. Tanjung Lesung
4. Kepulauan Seribu & Kota Tua Jakarta
5. Borobudur
6. Bromo-Tengger-Semeru
7. Mandalika
8. Labuan Bajo
9. Wakatobi
10. Morotai

Indonesia’s Tourism Minister Arief Yahya said 120,000 hotel rooms, 15,000 restaurants, 100 international recreational parks and 100 diving operators will be added to the destinations, at the Singapore-Indonesia Investment Forum. Plus, infrastructure such as solar facilities will be built to boost the power sources.

At a glance:

• The ‘10 new Balis’initiative will draw 10 million tourists annually
• 120,000 hotel rooms, 15,000 restaurants, 100 recreational parks and 100 diving operators plus solar facilities will be built
• Indonesia government is seeking US$20 billion (S$26.8 billion) to fund the initiative
• Investment from Singapore into Indonesia has been increasing
• Singapore Prime Minister Lee Hsien Loong said there are strong bilateral economic links and areas for future collaboration between the Singapore and Indonesia

The Indonesia government is seeking US$20 billion (S$26.8 billion) in investment for the initiative. Urging Singapore businesses to invest in Indonesia, Mr. Yahya said more than 90 per cent of the tourism industry will welcome foreign direct investment.

Singapore Business Federation (SBF) chairman Teo Siong Seng noted that investments from Singapore into Indonesia has been increasing. Last year, the figure hit US$9.2 billion, an increase of 55 per cent from 2015.

There will be “potential business opportunities” for Singapore investors arising from the ‘10 new Balis’ initiative. Citing the findings of a recent SBF survey, Mr Teo said Indonesia was the overseas market with the highest interest among Singapore’s business community. “This is not surprising, as many economic indicators are pointing to Indonesia’s positive gross domestic product growth and huge market potential, and there is also a strong push by the Indonesia government to improve the investment environment for foreign investors.”

Singapore Prime Minister Lee Hsien Loong spoke at the forum about strong bilateral economic links and areas for future collaboration, noting there was great potential to grow tourism between the two countries further.

Indonesian President Joko Widodo, who was in Singapore, said that Indonesia has become more business-friendly. Under the World Bank’s Ease of Doing Business Index, Indonesia jumped 15 places to the 91st spot in the last year, and rating agencies Standard & Poor’s, Fitch and Moody’s have rated Indonesia as investment grade.

Mr Widodo acknowledged “Doing business in Indonesia is still far too frustrating, too many rules and regulations. They are constantly changing, and too often poorly designed ... we will continue to push and continue to find new ways to improve investment and business climate in Indonesia.”

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