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.
Guide to Doing Business in Bali & Lombok
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.
Click the button below to build your successful golf business in Indonesia.
Pandu Biasramadhan
Senior Consulting Manager at InCorp Indonesia
An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.
Frequently Asked Questions
- Business Identification Number (NIB)
- Standard Certification
- Standard Certification is necessary for medium-low and medium-high-risk businesses
- Licenses/Permits
The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must.
In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:
Low-risk businesses needing only an NIB
High-risk businesses require licenses/permits
Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).
The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information can be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia.
PT (Perseroan Terbatas) is the Indonesian term for a limited liability company.
