RI maritime tourism needs adequate infrastructure

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Wisata bahari RI butuh infrastruktur memadai

12 August 2024

By Heru Febrianto

Jakarta, ID - The Indonesian National Shipowners' Association (INSA) has called for various stakeholders to support the development of the maritime tourism ecosystem in the country by building adequate infrastructure.

Carmelita Hartoto, Chairperson of the Central Executive Board (DPP) of INSA, stated that the shipowners’ association is continuously striving to advance national shipping while promoting Indonesia’s maritime tourism. This includes organising the INSA Yacht Festival (IYF) 2024 at Benoa Marina Bali from 9-11 August 2024.

"We hope that IYF 2024 will unlock the potential for developing national maritime tourism, thereby encouraging national investors to invest in the national yacht sector," Carmelita said in a press release quoted on Sunday (11/08/2024).

According to her, the promotion of maritime tourism aligns with the government's efforts to boost the tourism sector. The tourism and creative economy sector contributed 3.9% to the national gross domestic product (GDP) in 2023, with the tourism sector employing 24.41 million people.

On the other hand, the IYF event is expected to inspire people to make the sea a part of the Indonesian lifestyle. By being part of people’s lifestyle, Indonesia’s seas can truly become a source for national development in the future.

"This event is also expected to encourage the development of other yacht ecosystems, such as increased marina development in Indonesia with facilities that meet international standards," she explained.

Carmelita noted that Indonesia's maritime tourism infrastructure, particularly for cruise ships and yachts, remained far behind neighbouring countries like Singapore. According to INSA’s data, marinas in Indonesia currently have a capacity of 200-300 vessels, whereas in Singapore, it can reach 1,500 vessels per year.

Therefore, she believes that support from all stakeholders is needed to create adequate maritime tourism facilities and infrastructure. This will make Indonesia an attractive destination for yacht owners to dock their vessels.

"The development of marinas in Indonesia needs to be supported by all stakeholders, particularly with competitive financing schemes," Carmelita added.

Moreover, the presence of marinas that meet standards will enhance Indonesia's reputation as a premier destination for yacht owners from around the world. This, in turn, will have a significant impact on the economy, particularly the MSME sector, tourism, and will also open opportunities for the development of yacht-related industries.

"Equally important, we hope for more optimal support from the government, both in terms of regulations and other policies, especially in the yacht and cruise sectors. With all the existing potentials, we are optimistic that Indonesia can enhance its yacht ecosystem in the future," she concluded.

Preparing 28 yacht ports

Transportation Minister Budi Karya Sumadi supports the efforts of the shipping industry to advance maritime tourism in Indonesia. He believes the INSA Yacht Festival is a perfect moment to promote Indonesia's natural beauty while showcasing impressive yachts to the public.

"I appreciate and support INSA, as the association that accommodates shipping business players, for its initiative to develop maritime tourism in the country through the INSA Yacht Festival," said the Transportation Minister.

He added that IYF is also the right event to bring together both domestic and international shipping business players, allowing them to interact and share experiences related to industry developments. In particular, shipping business players can exchange ideas on identifying opportunities and finding solutions to future challenges.

"I hope the ecosystem for yachts and cruise ships will continue to grow, eventually having a positive impact on Indonesia's tourism and economy," Budi Karya explained.

He also stated that the government is committed to continuously supporting the progress of the shipping business from a policy perspective. In this context, the government provides operational convenience for pleasure crafts to sail in Indonesian waters.

“We facilitate yachts and cruise ships to operate in Indonesia. This way, people can enjoy memorable experiences on these pleasure crafts in various locations. Not only in Bali, but also in places like Likupang, Wakatobi, and Labuan Bajo," he explained.

Regarding regulatory support, the Transportation Ministry has issued Transportation Minister Regulation No. PM 4 of 2022 on the Services for Foreign Yachts and Foreign Cruise Ships in Indonesian Waters. The government has opened 28 embarkation and debarkation ports for Foreign Yachts and 10 embarkation and debarkation ports for Foreign Cruise Ships.

Need for support from private sector

Meanwhile, maritime expert from Institut Teknologi Sepuluh Nopember Surabaya, Raja Oloan Saut Gurning, said government support in building infrastructure for sporting vessels like yachts is necessary if it has a significant impact on the community. He believes that infrastructure like harbours should be built with private sector support.

"The reason is that building harbours like marinas is usually for a specific group because their needs are hobby-related. The government can be involved through a public-private partnership (PPP) scheme. Revenue from the state can also be utilised if [the community] is serious in organising international festivals," he told Investor Daily.

On the other hand, regulations need to be stricter considering that many yachts pass through Indonesian waters without docking. "If supervised, this could also generate levies. Many yachts anchor in Bali and Lombok as well as other Indonesian waters," he revealed.

He added that the government indeed needs to make strict regulations regarding pleasure crafts, recreational vessels, and sporting vessels. "I think the potential is also huge. On the other hand, there are many enthusiasts from the upper-middle economic class," he concluded.

 

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