Tourism and Creative Economy Minister Sandiaga Uno said the government is determined to develop 18 priority tourist destinations and will offer the development projects to investors with various incentives. “In order to improve the investment climate, there will be fiscal incentives issued by the government to attract investors’ interest in the tourism sector,” Sandiaga told Tempo on Thursday, September 16.

The fiscal incentives include tax allowance, exemption from import duty, exemption from import duty on tourist ships or yachts, and super deduction tax. For tax allowance incentives, the government will reduce net income tax for six years by five percent per year. The government will also provide compensation for losses of up to 10 years for certain businesses, especially in ten priority tourist destinations. To obtain the incentives, investors must invest at a high value, absorb a large number of workers, and agree to meet the local content requirements (TKDN).

The 10 priority tourist destinations (DPP):
1. Lake Toba, North Sumatra
2. Tanjung Kelayang, Bangka Belitung
3. Thousand Islands or Seribu Islands, Jakarta
4. Tanjung Lesung, Banten
5. Borobudur, Yogyakarta and Central Java
6. Bromo - Tengger - Semeru, East Java
7. Mandalika, Lombok, West Nusa Tenggara
8. Labuan Bajo, East Nusa Tenggara
9. Wakatobi, Southeast Sulawesi
10. Morotai, North Maluku
The seven new priority tourist destinations:
1. Tanjung Gunung - Sungailiat, Bangka Belitung Islands
2. Cikidang - Pelabuhan Ratu, West Java
3. Pangandaran, West Java
4. Ijen-Baluran, East Java
5. Makassar - Selayar - Toraja, South Sulawesi
6. Manado, North Sulawesi
7. Raja Ampat, Papua
The other tourist priority destination under the revitalization project is Bali.

Source: https://en.tempo.co/read/1507276/sandiaga-uno-to-offer-four-investment-incentives-in-tourism-sector