Turning Destinations into Opportunity: Supporting More than a Million Jobs in Indonesia

The Indonesia Tourism Development Project (ITDP, 2018–2024) improved tourism infrastructure, strengthened institutions, enhanced local economic participation, and attracted private investment. It benefited over 5.4 million people, certified 84,000 professionals, and helped 40 villages achieve sustainable tourism boosting Indonesia’s tourism sector and local economies.

Development Challenge

The Indonesia Tourism Development Project (ITDP, 2018–2024) improved tourism infrastructure, strengthened institutions, enhanced local economic participation, and attracted private investment. It benefited over 5.4 million people, certified 84,000 professionals, and helped 40 villages achieve sustainable tourism boosting Indonesia’s tourism sector and local economies.

The World Bank Group Approach

The World Bank’s engagement in Indonesia’s tourism sector was driven by: (i) integrated, multi-sectoral solutions addressing the full range of tourism challenges, from infrastructure to policy reform; (ii) global expertise and best practices draw from successful tourism development models in countries such as Morocco and the Philippines; and, (iii) the ability to leverage private investment through policy reforms and targeted infrastructure improvements. Critically, while infrastructure investments created direct construction jobs, the project’s deeper impact came from catalyzing private sector engagement — multiplying job creation across hotels, restaurants, tour operations, and local supply chains in ways that infrastructure spending alone could not achieve.

The project was also complemented by an IFC initiative – the Indonesia Investment Climate Competitive Sectors and Competition (ICCSC), funded by the Multi‑Donor Cooperation Instrument for Inclusive Policy (MCICP), financed by the Swiss State Secretariat for Economic Affairs (SECO)) – which provided advisory, regulatory, and technical support to the government to improve the business environment and attract sustained private investment.

Results

• Employment effect: (1) The project created 44,000 jobs directly and indirectly and had impact on 1.15 million jobs (including the induced impact due to better infrastructure and better income); (2) Job retention after skill competency certification increased by 7 percent; (4) Job uptake for new employees after skill competency certification increased by 13 percent.
• Access to services: About 5.4 million beneficiaries across six destinations gained improved access to tourism infrastructure and services (well over the target of 3.5 million). Infrastructure upgrades included water supply, sanitation, solid waste management, roads, and non-motorized transport, enhancing competitiveness, sustainability, and visitor experience.
• Certification and ratings: Forty villages achieved sustainable tourism certification, and more than 3,600 businesses received higher ratings on travel agency websites for improved service and quality.
• Local economic linkages: Over 84,000 individuals (48 percent female) completed tourism competency certification; over 20,000 businesses established an online presence; more than 18,000 participants (52 percent women) joined tourism awareness programs.
• Private investment: US$874 million was attracted to selected tourism destinations.

Contribution to WBG Targets and Jobs

More and better jobs: The Indonesia Tourism Development Project supported approximately 40,000 direct and indirect jobs, with the total employment impact, including induced effects, reaching around 1.15 million jobs.[tweetquote:[tweetText=More and better jobs: The Indonesia Tourism Development Project supported approximately 40,000 direct and indirect jobs, with the total employment impact, including induced effects, reaching around 1.15 million jobs.,tweetData=WorldBank,tweetHash=]] It strengthened labor market outcomes by increasing job retention among certified workers by 7 percent and raising new employment uptake by 13 percent following skills certification. Beyond employment, investments in tourism-related infrastructure and services—including roads, sanitation, and public facilities—directly benefited an estimated 5.4 million people, improving access to services, living conditions, and the sustainability of tourism destinations.

READ MORE: https://www.worldbank.org/en/results/2026/05/29/turning-destinations-into-opportunity-supporting-more-than-a-million-jobs-in-indonesia