Indonesia’s tourism industry is experiencing a significant shift with the rise of golf tourism. This trend presents a compelling investment opportunity fueled by factors including developing new courses, increasing domestic demand, and a strategic regional position.
This article explores Indonesia’s golf tourism surge’s key drivers and potential for investors seeking to capitalize on this growing market.
Why golf tourism in Indonesia?
Indonesia is positioning itself as a premier golf tourism destination in the region, capitalizing on the closure of numerous golf courses in Singapore.
The city-state’s land scarcity has led to the shutting of many public golf courses, including the Marina Bay Golf Course, its last public 18-hole course, which closed recently. This has prompted golf enthusiasts to look for overseas alternatives.
Indonesia Minister of Tourism & Creative Economy, Sandiaga Uno, highlighted that Indonesia, particularly the Riau Islands, could be an ideal replacement for golf tourism within the region due to their proximity to Singapore.
Choosing Riau Islands as the new golf tourism hub
The Riau Islands are set to become Indonesia’s major golf tourism hub. The province features ten golf courses, seven in Batam City and three in Bintan District.
The Indonesian Minister of Tourism and Creative Economy is confident that the Riau Islands can attract 25 percent of the country’s targeted 14.3 million foreign tourist arrivals in 2024.
This optimism is based on the significant rise in foreign tourist visits to the Riau Islands in 2023, which increased to 1.5 million from 785,000 in 2022.
Top 5 current Indonesia golf destinations
Apart from the Riau Islands, Indonesia offers top-notch golf courses in major cities, featuring high-quality facilities and pristine grass. Some of the best courses include:
1. Damai Indah Golf, Tangerang
Developed by renowned entrepreneur Ir. Ciputra, this 6,545-meter course offers a challenging and scenic golfing experience. Members enjoy benefits like dining, swimming pools, tennis courts, and comprehensive training facilities.
2. Bali National Golf Club
Situated in Bali and established in 1991, this 104-hectare course includes 18 holes with spectacular mountain and sea views. It’s suitable for both professional and beginner golfers and frequently hosts international events like the Indonesia Open.
3. Bintan Lagoon Golf Club
Located in Bintan, this 150-hectare course, built in 1997, features the Lagoon and Ocean Courses. It offers complete facilities and stunning sea views, ideal for international events like the Indonesian Masters.
4. Pondok Indah Golf Course
Opened on August 17, 1976, this course emphasizes harmony with nature and offers a balance of fun and challenge suitable for all skill levels. Its layout is championship-ready yet welcoming to beginners and players with special needs.
5. Rancamaya Golf & Country Club
For a pleasant golfing experience in Bogor, Rancamaya is the perfect choice. This course features lakes and mountain views, and it has 18 unique holes that offer varying challenges based on pin placement and tee usage.
Read more: Start your medical tourism business in Bali
Exploring the trend of the Indonesia golf industry
Indonesia is leveraging golf’s growing popularity for tourism development through the government’s “10 New Balis” initiative, which aims to promote destinations beyond the famous resort island. Golf tourism opportunities are particularly highlighted in Lake Toba, Mandalika, and Labuan Bajo.
According to Bernardino Moningka Vega, head of international relations at the Indonesia Golf Association (PGI), the country’s golf industry has thrived with the sport’s rising popularity.
Participation among Indonesians has increased by 20% since the COVID-19 pandemic in 2020.
This popularity extends beyond domestic players, attracting international enthusiasts from nearby countries and East Asian nations like Japan and South Korea for golf vacations.
Since 2016, golf participation has risen globally, with over 5.5 million new players, according to 2021 research by R&A and Sports Marketing Surveys (SMS).
Despite land scarcity in many Asian cities limiting course availability and increasing prices, Indonesia offers a golden opportunity with its still affordable golf courses.
The future of golf tourism in Indonesia
Compared to its Southeast Asian neighbors, notably Thailand and Vietnam, Indonesia’s golf tourism still lags behind.
According to Darma Mangkuluhur Hutomo, President Commissioner of Intra GolfLink Resorts (IGR), only about 250,000 tourists visit Indonesia annually for golf.
In contrast, Thailand attracts 6 million golf tourists annually, and Vietnam 1.5 million. Darma suggests that Indonesia needs to optimize this sector to boost tourism.
He noted that potential golf tourists come from Japan and South Korea, as these individuals often travel to Southeast Asia for business and golf.
Darma mentioned plans to invest in this sector to catch up, aiming to make Indonesia a significant golf tourism destination within 5-10 years.
PT IGR plans to expand its golf and hotel business in Bali through its subsidiary PT New Kuta Golf and Ocean View (NKG).
NKG aims to build a six-star Luxury Boutique Hotel’ at Hole 15-Th Cliff Hanger, Pecatu Indah Resort, Jimbaran, Bali.
Simplify your entry into Indonesia’s golf tourism
Recent developments indicate that Indonesia’s golf industry is rising, creating significant investment opportunities. InCorp can help you capitalize on this growth with our comprehensive business license and Investor KITAS services.
Benefits of partnering with InCorp:
- Streamlined market entry: We handle the complexities of obtaining business licenses and ensure your company operates legally in Indonesia.
- Investor KITAS assistance: Our team simplifies the Investor KITAS application process, allowing you to secure the necessary visa to live and work in Indonesia.
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Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
Frequently Asked Questions
- Set up a PMA (Perusahaan Modal Asing)
- Set up a RO (Representative Office)
- Importer Identification Number (Angka Pengenal Impor or API)
Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production.
General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System. - Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process.
- Annual financial report
- Investment realisation report
- Manpower and employee welfare report
- Expatriate utilisation report
- Company loan repot
- Foreign exchange and prudential principles report
Within the scope of foreign direct investment in Indonesia, foreign investors can typically do business in two ways:
PMA is a local subsidiary in the form of a limited liability corporation for foreign investment reasons
According to Law No. 25/2007 on Investment, foreign investors are required to establish a PMA company in order to make direct investments and conduct commercial and business activities in Indonesia. A PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations. As for RO, its purposes include conducting market feasibility studies and liaison activities.
A PMA company in Indonesia must obtain an NIB, which also functions as:
Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals.
Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process.
In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as:
However, depending on the business activities and classification relevant authority may require additional reports from a PMA company.
