Indonesia Targets Rp63.5tn Tourism Investment in 2026

Labuan Bajo — Indonesia’s Tourism Ministry is targeting Rp63.5 trillion in tourism investment in 2026, aligned with the 2025–2029 National Medium-Term Development Plan, with Labuan Bajo designated among 10 national priority tourism destinations.

The investment target was outlined by the ministry’s acting deputy for industry and investment, Rizki Handayani, in late May 2026, who said the figure follows the national tourism direction set in the 2025–2029 development plan.

According to statements reported by Indonesian business media, the ministry plans to focus this investment on three “regenerative” destinations and 10 priority destinations, reflecting an attempt to diversify investment beyond Bali, Jakarta and the Riau Islands, where most tourism capital was concentrated in 2025.

Regenerative and priority destinations

The three regenerative destinations identified by the ministry are Bali, Greater Jakarta and the Riau Islands, which are being positioned as areas for tourism that supports environmental recovery and local communities.

Alongside these, the government is concentrating tourism development on 10 priority destinations across the archipelago.

The 10 priority destinations include Lake Toba in North Sumatra, Borobudur in Central Java, Mandalika in West Nusa Tenggara, Labuan Bajo in East Nusa Tenggara, Likupang in North Sulawesi, Tanjung Kelayang in Bangka Belitung, Bromo-Tengger-Semeru in East Java, Wakatobi in Southeast Sulawesi, Morotai in North Maluku and Raja Ampat in Southwest Papua.

These sites have been described in government and media reports as new growth centres for tourism, with Labuan Bajo among a smaller group of destinations receiving accelerated development attention under the 2025–2029 plan.

Investment targets and distribution

Rizki Handayani has stated that the ministry aims to meet 65 percent of the overall investment target across the 13 destinations, with 70 percent of that portion expected to be realised in the three regenerative destinations.

Officials and media reports have not yet broken down the Rp63.5 trillion target between confirmed commitments and projected project pipelines, nor have they specified individual allocations to each destination.

Recent government documents summarising tourism strategy for 2025–2029 show Labuan Bajo listed among destinations with priority acceleration, but do not assign publicly disclosed investment quotas for Flores or Labuan Bajo specifically.

Implications for Labuan Bajo and Flores

For Labuan Bajo and the wider Flores region, the national investment target establishes a framework rather than a guaranteed local allocation.

The focus on regenerative destinations means Bali, Greater Jakarta and the Riau Islands are expected to absorb most of the planned tourism capital, while priority destinations such as Labuan Bajo compete for the remaining share.

Ministry officials have urged local governments to prepare investment-ready projects, improve basic and tourism infrastructure, and strengthen connectivity to attract investors to priority destinations.

Government strategy documents also emphasise the importance of expanding tourism products and services, simplifying regulations and improving legal certainty to support investment.

Project readiness and promotion

The ministry’s plans extend beyond accommodation and individual tourism businesses to wider infrastructure and destination development.

Officials have highlighted the role of local administrations in interpreting global travel trends and adapting them to local potential, in order to build tourism offerings that can absorb investment.

In parallel, senior ministry figures have called for closer cooperation between government, business associations and tourism operators to strengthen digital promotion and marketing of Indonesian destinations, including the 10 priority sites.

For Labuan Bajo, these conditions suggest that the readiness of projects and supporting infrastructure will be central to converting the national tourism investment target into concrete capital inflows, even though no official breakdown of the Rp63.5 trillion target for Flores has been publicly disclosed.

Sources

• Bisnis.com – Kemenpar Bidik Investasi Pariwisata Rp63,5 Triliun pada 2026, Sebaran Masih Belum Merata
• Investortrust.id – Kemenpar Genjot Investasi Pariwisata Rp 63,5 Triliun pada 2026
• CNN Indonesia – Kemenpar Genjot 10 Destinasi Wisata Prioritas di Luar Bali
• Kemenpar – Rencana Strategis Kementerian Pariwisata 2025–2029 (Permenpar No. 7 Tahun 2025)
• Validnews – Menggali 10 Destinasi Pariwisata Prioritas Indonesia