Indonesia Invites Tourism Investors during IORA

Jakarta, IORA – Indonesian Minister of Tourism Arief Yahya will offer tourism investment opportunity in Indonesia to IORA member states and dialogue partners during the Indian Ocean Rim Association (IORA) Summit 2017 held in Jakarta from 5 to 7 March.

In order to promote the tourism sector, a sustainable and equitable infrastructure development throughout Indonesia is needed. Minister Arief Yahya will also invite foreign investors to invest to the 10 New Bali—government prioritized program to boost the tourist visit to Indonesia.

The 10 "New Bali" offered by the government, namely Lake Toba in North Sumatra, Tanjung Kelayang in Bangka Belitung, Tanjung Lesung in Banten, Thousand Islands in Jakarta Special Region, Borobudur in Central Java, Bromo-Tengger-Semeru in East Java, Mandalika in West Nusa Tenggara, Labuan Bajo in East Nusa Tenggara, Wakatobi in Southeast Sulawesi and Morotai in Maluku.

Based on data from the Ministry of Tourism, the total investment required for the development of 10 new tourist destinations reach Rp200 trillion. The Rp100 trillion funding is planned to come from public investment and the rest comes from the private sector.

The RI government is targeting 20 million tourist arrivals by the year of 2019. To achieve this goal, the Indonesian Government has issued several policies such as the short visa-free policy for 169 countries, ease of yacht and cruise entry permit, and revocation of the Clearance Approval for Indonesian Territory (CAIT).

The Indonesian government is well aware that in order to support the tourism sector, adequate air connectivity is needed considering that 75 percent of foreign tourists come to Indonesia by air transportation. The government targets the increase of seat capacity by 2019.

Coordinating Minister for the Economy Darmin Nasution said that IORA member states have not utilize cooperation opportunities optimally, including Indonesia.

IORA member countries are considered strong enough to establish cooperation framework. Among the countries considered to be an important pillar of IORA are Indonesia, India, and South Africa.

Some examples of the potential of IORA in the context of economic cooperation are the African export markets. The potential for exports to Africa reached USD550 billion in 2016. Another potential market is the Middle East, which reached USD975 billion.

IORA intra-regional trade in 2015 reached USD777 billion, or increased by 300 percent compared to 1994 which amounted to USD233 billion.

In addition, the Indian Ocean represents 70 percent of world trade routes, including route for oil and gas distribution. In fact, more than half of the container ship and two-thirds of the oil tanker from around the world traverse through the region.

IORA member states are home to approximately 2.7 billion people or 35 percent of the world population. However, it only contributes to 12 percent of world market share, 10 percent of global GDP, and 13 percent of foreign investment destination (FDI

The Objective of IORA

Indian Ocean Rim Association (IORA) was established on 6 to 7 March 1997. The organization was formerly known as "Indian Ocean Rim Association for Regional Cooperation" (IOR-ARC).

At the 13th Ministerial Meeting in Perth, Australia, IOR-ARC was changed into IORA to raise public awareness that the forum aims to unite the countries bordering the Indian Ocean as one region.

IORA’s main objective is to improve the establishment of sustainable growth and balanced development of the region and all member countries and to create a strong foundation for regional economic cooperation through trade facilitation efforts and eliminating trade barriers.

IORA comprises of 21 member countries, namely South Africa, Australia, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, the United Arab Emirates, Seychelles, Singapore, Somalia, Sri Lanka, Tanzania, Thailand and Yemen.

IORA is also supported by seven dialogue partners, namely the United States, United Kingdom, Japan, Germany, Egypt, France and China. There are also two observers in IORA, namely the Indian Ocean Tourism Organization (IOTO) and Indian Ocean Research Group (IORG).

IORA grows rapidly through the years. It has developed into a broader and deeper organization. Its performance is increasingly active since the chairmanship of India in 2011-2013 and Australia in 2013-2015.

IORA Summit 2017 will be held in Jakarta on 5-7 March 2017, under the theme "Strengthening Maritime Cooperation for a Peaceful, Stable, and Prosperous Indian Ocean". In this summit, 16 heads of state and governments have confirmed their attendance. The event will be preceded by senior-official meeting on March 5, a ministerial meeting on March 6, and leaders’ summit on March 7.

On 6 March 2017, IORA will also engage Business Summit which will be attended by around 250 businessmen from IORA member states.


Source: Antara