Foreign Investment Injections to Boost the Hospitality Sector

The Investment Coordinating Board (BKPM) recorded the achievement of investment realization in 2020 (January-December) of IDR 826.3 trillion or 101.1% of the target of IDR 817.2 trillion.
Torok hill resort

RumahCom – The Investment Coordinating Board (BKPM) recorded the achievement of investment realization in 2020 (January-December) of IDR 826.3 trillion or 101.1% of the target of IDR 817.2 trillion. Of the total value, the realization of foreign investment (PMA) contributed half or Rp.412.8 trillion (49.9%).

It is noted that the distribution of investment in the period throughout 2020 outside Java is IDR 417.5 trillion (50.5%), higher than in Java, which is IDR 408.8 trillion (49.5%). According to BKPM, this indicates that domestic and foreign investors are no longer making Java their only alternative. In the future, in the context of downstreaming and economic transformation, outside Java will also develop.

In a media conference on January 25 yesterday, the Head of BKPM Bahlil Lahadalia also said that foreign investors now prefer to do business in North Maluku and other Eastern regions. This condition also reflects that foreign investors are comfortable investing in areas that have not been fully explored.

One of the foreign investors who chose the East region as its business area is Invest Islands. This real estate developer company is currently building two international class villa projects; including Torok Hill in Lombok, West Nusa Tenggara and another in Sumba, East Nusa Tenggara.

The Torok Hill project itself is targeted to be completed and ready to operate in Q2 2023. Previously, the project was expected to be completed in 2022. Kevin Deisser as Founder & Director of Invest Islands claimed that the delay in the operating schedule was not related to the ongoing pandemic situation in Indonesia.

“This is in no way related to an unstable market situation. Construction on Torok Hill is still running normally with construction currently being focused on resort facilities. We hope that when Torok Hill officially opens in 2023, the pandemic will end and tourists, both domestic and international, can go on vacation again with a sense of security, ”he said when contacted by, Thursday (04/02).

Torok Hill offers a private villa with a stunning location and view that directly overlooks the Indian Ocean. The number of villas built is 80 units, with types of one bedroom, two rooms, and three rooms. Kevin said, the price of staying one night at Torok Hill starts from IDR 6 million.

“In accordance with the property management that we provide, we are targeting 50% of the guests who come are tourists from Europe. Then domestic tourists from Jakarta and Surabaya were the second largest, Chinese tourists had the third most, and Australia was the last, “said Kevin.

Foreign Investment Made Easier

Torok hill resort

As a foreign player, Invest Islands acknowledges the major changes that the Government of Indonesia has brought for investors. Among them are the ease of the investment process and the short travel time for the applicable procedures.

“The government has done so well. Through the Ministry of ATR / BTN, what we feel is now getting a business license faster and easier than a few years ago. Especially now that the practice can be done in a digital way which of course is in accordance with the current conditions. Then the process of foreign investment (PMA) which previously took about 6 months, now only three weeks has been completed, “explained Kevin.

He also saw the direction of the Government’s policy through the Ministry of Foreign Affairs, which has made various efforts to open the widest possible opportunity for foreign investors to enter and do business in Indonesia. Slowly but surely, according to him, Indonesia will open the world’s eyes regarding the existing potential.

Accordingly, in his speech on the 2021 RAPBN financial note, President Joko Widodo revealed that tourism development in 2021 is budgeted at around Rp. 14.4 trillion which is directed at encouraging economic recovery in the tourism sector. The policy is carried out through tourism restoration, with destination development in 5 focus areas of Lake Toba, Borobudur, Mandalika, Labuan Bajo, and Likupang.

Invest Islands itself has been officially registered as PMA at the Investment Coordinating Board under the name PT Invest Indonesian Islands.

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