The industry of Tourism: Indonesia’s New Face of Modernization

Nowadays, we live in a world where most people use technology in their daily activities. The latest industrial Revolution not only has great potential in overhauling the industry but also changes various aspects of human life, such as the industry of tourism. Thus, the Indonesian government has arranged several programs to ensure that the country is ready to face the modernization.

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The Making Indonesia 4.0 Initiative for the industry of tourism

For Indonesia, the 4.0 phenomenon provides an opportunity to revitalize Indonesia’s various sectors to accelerate Indonesia’s goal to become the 10th largest economy in the world. As the first step, Indonesia will carry out 10 priorities in the national “Making Indonesia 4.0” initiative.

  1. Improvement of the flow of goods and materials
    Indonesia depends on imports of raw materials and high-value components, especially in chemical, raw metals, automotive and electronics sectors. The government will go by strengthening the local production in the upstream and medium sectors through increased production capacity and accelerated adoption technology. In practice, this goal will be achieved by developing a long-term design for improving the flow of goods and materials nationally and formulate a material sourcing strategy.
  2. Redesign of the industrial zone
    Indonesia has built several industrial zones throughout the country. These industrial zones will be optimized by creating several policies, which include connecting each industrial zone to another and create a better transportation line, as well as the best infrastructures to support it.
  3. Accommodating sustainability standards
    The global community has raised concerns about sustainability in various sectors. Indonesia sees the challenge of sustainability as an opportunity to build sustainability capacity based on clean technology, EV, biochemistry, and renewable energy.
    Therefore, Indonesia will try to meet sustainability requirements in the future, identify the application of technology and environmentally friendly growth opportunities, as well as promoting a conducive environment (including regulations, taxes, and subsidies) as an environment-friendly investment.
  4. Empowering MSMEs
    Nearly 70 percent of the Indonesian workforce works for micro, small and medium enterprises (MSME). The Indonesian Government is committed to supporting MSME entrepreneurs by building e-commerce platforms for MSMEs, farmers, and craftsmen, building technology centers to increase the MSME access to acquired suitable technology, and provide mentoring support to drive more innovation.
  5. Building a national digital infrastructure
    To support the Making Indonesia 4.0 Roadmap, Indonesia will accelerate the development of digital infrastructure, including high-speed internet connection and digital capabilities by incorporating the help from the government, public and private sectors to be able to invest in digital technology such as cloud, data center, security management, and broadband infrastructure.
    Indonesia will also align the digital standards, following global norms, to encourage collaboration between industry players so that they can accelerate the digital transformation.
  6. Attract foreign investment
    Indonesia needs to involve more prominent manufacturing industry players to close down technology gaps and encourage technology transfer to local companies. To increase the FDI, Indonesia will actively involve the global manufacturing companies by choosing 100 world’s top manufacturing companies as prime candidates and offering interesting incentives, and dialogue with foreign governments for national-level collaboration.
  7. Enhancing the quality of human resources
    Human resources is important for achieving the successful implementation of the Making Indonesia 4.0 initiative. Indonesia plans to overhaul the education curriculum with more emphasis on STEAM (Science, Technology, Engineering, Arts, and Mathematics), harmonize the national education curriculum with future industrial needs.
  8. In practical terms, Indonesia will be working with industry players and foreign governments to improve the quality of vocational schools. This step will be conducted while improving the global labor mobility program to utilize human resource availability in accelerating the transfer of capabilities.
  9. Development of an innovative ecosystem
    The innovative ecosystem is important to ensure the success of Making Indonesia 4.0 initiative. The Indonesian government will develop a blueprint for national innovation centers, preparing pilot innovation centers and optimize related regulations, including the protection of intellectual property rights and fiscal incentives to accelerate a cross-sector collaboration between private/public business and a university.
  10. Incentives for technology investment
    Incentives have the potential to drive innovation and technology implementation. Therefore, the Indonesian government will redesign the technology implementation incentive plan, such as subsidies, company tax breaks, and import tax exemptions for companies that are committed to implementing the 4.0. technology. Also, Indonesia will launch a state investment fund to support additional funding for investment and innovative activities in the field of advanced technology.
  11. Harmonization of rules and policies
    Indonesia is committed to corresponding the rules and policies, to support the industry competitiveness and to ensure close coordination of the policymakers between the ministries and the institutions related to the local government.

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The Tourism 4.0 program

Now, as the public, especially millennials are increasingly online, businesses are demanded to carry out the same movement; transformed in the digital direction. Many tourism platforms today have been digitalized (digital based), from ticket reservations, destination promotions, and others.

The millennial generation is the future of the national industry of tourism. This is seen as one of the latest tourism trends in Indonesia. Based on the data from the Ministry of Tourism, about 70 percent of travelers search and share through digital platforms, so that more than 50 percent of inbound travelers coming to Indonesia consist of millennials who interact a lot on social media networks.

Millennial tourists have power because they are large and active in cyberspace. But, this condition has not been well served. This is what the Indonesia Tourism ministry will provide more effort in facilitating the best tourist spots for millennials.

To win the market in the industrial era 4.0, one of the tasks and functions of the local government is to transform towards digital tourism and improve human resources. The key to successfully managing the tourism industry development in this modern era lay on how to place millennial generation as a strategic segment. Therefore, digital tourism is an effective strategy to promote the superior potential of an area through a technology-based platform targeting millennial generation.

Various tourist destinations like Bali, Borobudur, Lake Toba, Bintan Island, and many more, are prepared to present their beauty to these so-called Millenial generations. Responding to the challenges in the world of tourism, the government, especially the Ministry of Tourism, has planned the best strategy.

Arief Yahya as the Minister of Tourism of the Republic of Indonesia revealed that he is preparing a major strategy for transformation towards tourism 4.0. The main plans in question are Strategic Imperatives for Transforming Tourism HR to Win Global Competition in Industry 4.0; 5 Technology Enabler; Wonderful Indonesia Digital Tourism 4.0; Pentahelix Collaboration Approach; and 9 Key Initiatives for Discipline Executions. This is an effort to develop industry of tourism in Indonesia to be more advanced and popular internationally, which is focusing on the human resources sector. The goal is that Indonesian tourism can develop more rapidly and is known in the eyes of the world.

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