Bolstering Tourism in Indonesia via Digital Infrastructure Investment

The tourism industry in Indonesia is revamping its digital ecosystem and related aspects like infrastructure to stimulate the growth of local businesses.

October 2022 , by Noah Imson

As part of ongoing efforts to support the recovery of its tourism industry, Indonesia is focusing on the development of its digital ecosystem in several key areas as per a report by Antara News. As part of ongoing efforts to support the recovery of its tourism industry, Indonesia is focusing on the development of its digital ecosystem in several key areas as per a report by Antara News

With the year ending and 2023 quickly approaching, businesses should expect several growth opportunities to emerge as the public and private sectors will look to catalyze industry development.

Understanding the Digital Tourism Ecosystem
Emphasizing the development of its digital infrastructure to boost the domestic tourism sector will naturally entail the completion of national tech projects, improvement of digital services offered, and upskilling of the labor force. For instance, a significant consideration for tourists traveling to destinations in Indonesia is internet capability as it helps dictate one’s accessibility in an unfamiliar environment. Thus, things like cellular towers, 5G network coverage, and fiber optics, to name a few will become areas of investment for parties hoping to boost Indonesian tourism.

Given that industries are quickly adapting to the digital revolution, digital infrastructure in the context of tourism has taken on an entirely new meaning in recent times. Specifically, Indonesia is exploring the possibility of creating a digital application called, the Wonderful Indonesia Information System. This initiative aims to provide tourists with updated information relevant to travel wherein important details such as hotel and lodging prices, destination packages, and many more will be featured. Similar ventures which utilize smart technology will also become relevant soon as Indonesia aims to adopt virtual tours to better inform potential tourists. 

Moreover, ensuring that workers have the capacity to succeed in a digital environment will be an essential part of improving the digital tourism ecosystem in Indonesia. The digital upskilling of workers offers several benefits, namely: (1) allows the labor force to adapt to modern times, which unlocks future working opportunities, (2) equips the digital ecosystem with workers who have the necessary skills and knowledge to function efficiently, and (3) contributes to the development of the digital ecosystem in short and long-term. 

Outlook of Tourism in Indonesia
Considering that both the public and private sectors in Indonesia are paying close attention to the development of the digital ecosystem in relation to tourism, all indicators suggest that the country is primed for success. Moreover, considering that improving digital infrastructure concerns several areas, it is likely that Indonesia will experience an influx of investments from domestic and foreign parties alike. 

In the context of digital tourism projects, several stakeholders like tech companies, software developers, and specialists among others, will become relevant. These projects will likely facilitate the entry of these stakeholders as investors, which will bolster the growth of the tourism industry. 

Through their efforts in the tourism sector, the Indonesian government will have created more opportunities for local businesses that are striving for growth. More importantly, through its digitalization initiatives, Indonesia will inevitably attract foreign players and potential investors that will help kickstart the success of its tourism sector in 2023.

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