Indonesia Tourism Case Study

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Although the economic is emerging, Indonesia is dealing with various problems in tourism industry. As the archipelago geography, Indonesia sea transportation system is not yet developed significantly. Nowadays, ocean transport is noted as more expensive than land transport due to the weak system circumstances. Since the supply accumulated in Java and Sumatra Island, the east part of Indonesia should expend more cost to obtain the product because of additional transportation cost. It means that Indonesian entrepreneurs facing the lucrative opportunities as logistic problems includes transport, warehousing, cargo consolidation, border clearance, distribution and payment system. Indonesia ranks 61st out of 148 economies with regard to the state…show more content…
The earthquake for example can cause the disruption to the flow of goods and services. In some cases, the minor risk would impact bigger community. In addition to that, the soft social infrastructure such as education, health care and social welfare in Indonesia are a long way to reach up. However, the new government Joko Widodo cabinet launched the program called Indonesia Sehat (Health Indonesia) that aims to provide better health care system for the people. The evaluation and monitoring of the program is currently necessary to know the effectiveness of the…show more content…
The main problem faced the government is lack of financial resources. Actually, Indonesia opens more space for private investor, however the significant number of investment has been gathered. A non-conducive investment climate could not be provided during the time to attract investment. Several problems such as risk of natural disaster and legal framework involving land acquisition become the serious factor of postponing or cancelation of investment. Following that, in 2011 the government approved the new Land Acquisition Law (UU No.2/ 2012) that is regarded to increase and speed up the process of land acquisition. In that Law the land right and space for public interest are strongly recognized. Beside the law, government launched the MP3EI 2011-2025 (Master plan for the Acceleration and Expansion of Indonesia’s Economic Development Plan), as the action to tackle the infrastructure problems. It collaborates the private sector, which projected to need USD 468 billion investments, and 45% of them are reserved for infrastructure development. It is however; many practitioner and researcher argue that the results of this program have not yet showed satisfying results. Other programs launched by the government are Indonesia Infrastructure Guarantee Fund (IIGF) and RPJM (National Medium Term Development Plan)

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