Advancing Indonesia’s Marina & Boating Tourism Potential
Boasting a coastline of nearly 100,000 kilometers, Indonesia holds the position of the country with the second-longest coastline globally, after Canada. Beyond its extensive shoreline, the vast marine areas offer significant potential for developing a wide array of marine tourism opportunities. With a goal to become a progressive, resilient, and self-sufficient maritime nation, Indonesia is committed to advancing maritime development through a sustainable, phased strategy in both planning and implementation.
Indonesia has undergone several stages of economic transformation. Historically, its economy has been primarily supported by manufacturing, agriculture, and mining sectors. Since the early 2000s, the country’s exports have mainly consisted of oil and gas, coal, and palm oil. Nonetheless, current forecasts indicate that the tourism sector is expected to expand steadily and become a vital driver of Indonesia’s economic growth in the years to come.
Indonesia has undergone several stages of economic transformation. Historically, its economy has been primarily supported by manufacturing, agriculture, and mining sectors. Since the early 2000s, the country’s exports have mainly consisted of oil and gas, coal, and palm oil. Nonetheless, current forecasts indicate that the tourism sector is expected to expand steadily and become a vital driver of Indonesia’s economic growth in the years to come.
This raises an important question: why has Indonesia's maritime industry—particularly the boating sector and marina development—not seen significant growth? Interestingly, countries with much smaller land masses and shorter coastlines, such as Singapore and Hong Kong, have developed more vibrant boating industries that contribute substantial economic value to their economies.
1. Location
Unlike Singapore and Hong Kong, which serve as strategic hubs along global maritime routes for both logistics and tourism, Indonesia—particularly Jakarta, its primary economic center—does not occupy the same position in international maritime networks. As a result, boating activities in those countries flourish in tandem with their economic growth, while Indonesia's boating sector has yet to experience similar development.
2. Size
Indonesia, as a vast archipelagic nation comprising around 17,000 islands, possesses immense natural wealth and maritime potential. This geographic diversity offers significant opportunities but also presents challenges in managing such an expansive territory and ensuring balanced development across all regions. The wide variation in distances between islands—often centered around larger landmasses with smaller islands scattered nearby—affects the nature of boating activities. In Indonesia, boating tends to be more recreational rather than serving as a primary mode of transportation.
From a boating market perspective, activities can generally be divided into two categories: long-distance and short-distance trips. Long-distance boating typically attracts adventurous sailors who travel across countries in search of scenic destinations. In contrast, short-distance boating involves brief journeys—such as between nearby islands—primarily for recreational purposes.
In terms of long-distance routes, several Indonesian regions like Papua, Maluku, Lombok, and Bali currently serve as stopover points for vessels navigating global maritime paths. However, due to Indonesia’s relative distance from major economic centers and key international boating lanes, its market share in this segment remains limited. This contrasts with countries like Singapore and Hong Kong, which are strategically positioned as global maritime hubs for both logistics and tourism.
For short-distance boating, activities in Indonesia are currently concentrated around clusters of small islands, particularly in regions equipped with berthing infrastructure such as ports and marinas and supported by the unique potential of each area.
Key zones for short-trip boating include:
3. Equitable development
Approximately 65% of Indonesia's territory consists of ocean, with the remaining 35% comprising land. The landmass is distributed across six major islands—Java, Sumatra, Kalimantan, Sulawesi, and Papua—alongside numerous medium and small islands. Spanning roughly 5,100 kilometers from west to east, Indonesia's geographic breadth exceeds that of the United States, which stretches about 4,500 kilometers.
Currently, economic and business activities are heavily concentrated on the island of Java, particularly in Jakarta, the capital city. Development in regions outside Java remains uneven and is generally focused in key urban centers such as Medan, Balikpapan, and Makassar. Due to the vastness of Indonesia’s territory, inland development has progressed more rapidly than maritime development.
Meanwhile, maritime infrastructure—including ports and marinas—is primarily located in major cities or regions with specific maritime advantages, such as marine resources, logistics, or tourism. As a result, boating in Indonesia is still largely centered around logistics and transportation, while recreational boating has yet to see significant growth.
4. Regulation
The Indonesian government plays a central role in shaping the maritime sector, particularly in advancing boating and yachting activities. Through a combination of regulatory reforms and strategic initiatives, it has actively worked to strengthen Indonesia’s position along global maritime routes while promoting marine tourism. A significant milestone in this effort is the issuance of Ministry Regulation number 4 of 2022 by the Ministry of Transportation, which streamlines procedures for the entry and exit of foreign yachts and cruise ships in Indonesian waters—making the country more accessible to international maritime travelers. Complementing this, the Ministry of Tourism and Creative Economy has prioritized marine tourism as part of its broader strategy to increase tourism’s contribution to national GDP, with a particular focus on attracting high-value visitors. In addition, the latest issuance of Indonesia's 2024 Maritime Law Number 66 of 2024 introduces significant changes, among others in the application of cabotage principle favouring national maritime transport, the fulfilment of public service obligations, maritime environmental protection, and law enforcement within the maritime sector. Despite these advancements, several regulatory challenges remain.
Unlike Singapore and Hong Kong, which serve as strategic hubs along global maritime routes for both logistics and tourism, Indonesia—particularly Jakarta, its primary economic center—does not occupy the same position in international maritime networks. As a result, boating activities in those countries flourish in tandem with their economic growth, while Indonesia's boating sector has yet to experience similar development.
2. Size
Indonesia, as a vast archipelagic nation comprising around 17,000 islands, possesses immense natural wealth and maritime potential. This geographic diversity offers significant opportunities but also presents challenges in managing such an expansive territory and ensuring balanced development across all regions. The wide variation in distances between islands—often centered around larger landmasses with smaller islands scattered nearby—affects the nature of boating activities. In Indonesia, boating tends to be more recreational rather than serving as a primary mode of transportation.
From a boating market perspective, activities can generally be divided into two categories: long-distance and short-distance trips. Long-distance boating typically attracts adventurous sailors who travel across countries in search of scenic destinations. In contrast, short-distance boating involves brief journeys—such as between nearby islands—primarily for recreational purposes.
In terms of long-distance routes, several Indonesian regions like Papua, Maluku, Lombok, and Bali currently serve as stopover points for vessels navigating global maritime paths. However, due to Indonesia’s relative distance from major economic centers and key international boating lanes, its market share in this segment remains limited. This contrasts with countries like Singapore and Hong Kong, which are strategically positioned as global maritime hubs for both logistics and tourism.
For short-distance boating, activities in Indonesia are currently concentrated around clusters of small islands, particularly in regions equipped with berthing infrastructure such as ports and marinas and supported by the unique potential of each area.
Key zones for short-trip boating include:
- Jakarta – Seribu Islands. Benefiting from Jakarta’s role as the national economic hub and a population base with relatively high purchasing power, including interest in boat ownership and recreational boating.
- Bali – Lombok – Labuan Bajo. Driven by strong tourism appeal and established travel routes.
- Maluku Islands. Known for their rich tourism potential and natural beauty.
- Raja Ampat, Papua. A globally recognized marine tourism destination with exceptional biodiversity and scenic island surroundings.
3. Equitable development
Approximately 65% of Indonesia's territory consists of ocean, with the remaining 35% comprising land. The landmass is distributed across six major islands—Java, Sumatra, Kalimantan, Sulawesi, and Papua—alongside numerous medium and small islands. Spanning roughly 5,100 kilometers from west to east, Indonesia's geographic breadth exceeds that of the United States, which stretches about 4,500 kilometers.
Currently, economic and business activities are heavily concentrated on the island of Java, particularly in Jakarta, the capital city. Development in regions outside Java remains uneven and is generally focused in key urban centers such as Medan, Balikpapan, and Makassar. Due to the vastness of Indonesia’s territory, inland development has progressed more rapidly than maritime development.
Meanwhile, maritime infrastructure—including ports and marinas—is primarily located in major cities or regions with specific maritime advantages, such as marine resources, logistics, or tourism. As a result, boating in Indonesia is still largely centered around logistics and transportation, while recreational boating has yet to see significant growth.
4. Regulation
The Indonesian government plays a central role in shaping the maritime sector, particularly in advancing boating and yachting activities. Through a combination of regulatory reforms and strategic initiatives, it has actively worked to strengthen Indonesia’s position along global maritime routes while promoting marine tourism. A significant milestone in this effort is the issuance of Ministry Regulation number 4 of 2022 by the Ministry of Transportation, which streamlines procedures for the entry and exit of foreign yachts and cruise ships in Indonesian waters—making the country more accessible to international maritime travelers. Complementing this, the Ministry of Tourism and Creative Economy has prioritized marine tourism as part of its broader strategy to increase tourism’s contribution to national GDP, with a particular focus on attracting high-value visitors. In addition, the latest issuance of Indonesia's 2024 Maritime Law Number 66 of 2024 introduces significant changes, among others in the application of cabotage principle favouring national maritime transport, the fulfilment of public service obligations, maritime environmental protection, and law enforcement within the maritime sector. Despite these advancements, several regulatory challenges remain.
Given these considerations, what strategic steps should Indonesia take to strengthen its position in the global boating tourism industry?
1. Infrastructure Development
Expand and modernize boating infrastructure, including marinas and ports. Strategic partnerships between businesses and landowners—such as collaborations with waterfront property developers—can accelerate development and align with Indonesia’s broader maritime vision.
2. Regulatory Reform and Policy Alignment
Strengthen and streamline government regulations to support the growth of boating activities. This can be achieved through collaborative efforts involving business stakeholders, relevant ministries, and industry experts. A well-structured and supportive legal framework will foster a conducive business environment, encouraging investment and expansion in the boating sector.
3. Promote High-Value Marine Tourism
The Ministry of Tourism is prioritizing marine tourism as part of its strategy to boost tourism’s contribution to GDP to 5% by 2029. This includes targeting high-spending travelers and offering premium experiences.
4. Integrate Boating into Broader Tourism Campaigns
Boating should be marketed as part of Indonesia’s broader tourism appeal, especially in regions with strong marine tourism potential like Bali, Lombok, Labuan Bajo, Maluku and Raja Ampat. This can be done through international tourism expos, digital campaigns targeting yachting communities, or partnerships with cruise and yacht operators.
5. Decentralize Maritime Development
Currently, maritime infrastructure is concentrated in major cities. Expanding facilities to emerging tourism zones will help distribute economic benefits more evenly and unlock the potential of lesser-known island clusters.
6. Support for Local Business Ecosystems
Provide targeted support to businesses operating in areas surrounding boating hubs. This includes not only marine tourism operators but also land-based enterprises that complement maritime activities. A thriving boating sector depends on strong synergy between water-based and land-based economic activities.
7. Domestic Market Engagement
Promote boating tourism to the domestic market, particularly among the productive age group, which highly drives the national economy. Position boating as a compelling alternative to traditional land-based tourism, helping diversify Indonesia’s tourism offerings and stimulate broader interest in marine recreation.
8. International Collaboration and Route Integration
Leverage Indonesia’s rich natural beauty by partnering with other countries to designate key locations as anchorage points along global maritime routes and cruise tourism circuits. This strategy can significantly boost international boating traffic and elevate Indonesia’s profile in the global cruise and yachting market.
Expand and modernize boating infrastructure, including marinas and ports. Strategic partnerships between businesses and landowners—such as collaborations with waterfront property developers—can accelerate development and align with Indonesia’s broader maritime vision.
2. Regulatory Reform and Policy Alignment
Strengthen and streamline government regulations to support the growth of boating activities. This can be achieved through collaborative efforts involving business stakeholders, relevant ministries, and industry experts. A well-structured and supportive legal framework will foster a conducive business environment, encouraging investment and expansion in the boating sector.
3. Promote High-Value Marine Tourism
The Ministry of Tourism is prioritizing marine tourism as part of its strategy to boost tourism’s contribution to GDP to 5% by 2029. This includes targeting high-spending travelers and offering premium experiences.
4. Integrate Boating into Broader Tourism Campaigns
Boating should be marketed as part of Indonesia’s broader tourism appeal, especially in regions with strong marine tourism potential like Bali, Lombok, Labuan Bajo, Maluku and Raja Ampat. This can be done through international tourism expos, digital campaigns targeting yachting communities, or partnerships with cruise and yacht operators.
5. Decentralize Maritime Development
Currently, maritime infrastructure is concentrated in major cities. Expanding facilities to emerging tourism zones will help distribute economic benefits more evenly and unlock the potential of lesser-known island clusters.
6. Support for Local Business Ecosystems
Provide targeted support to businesses operating in areas surrounding boating hubs. This includes not only marine tourism operators but also land-based enterprises that complement maritime activities. A thriving boating sector depends on strong synergy between water-based and land-based economic activities.
7. Domestic Market Engagement
Promote boating tourism to the domestic market, particularly among the productive age group, which highly drives the national economy. Position boating as a compelling alternative to traditional land-based tourism, helping diversify Indonesia’s tourism offerings and stimulate broader interest in marine recreation.
8. International Collaboration and Route Integration
Leverage Indonesia’s rich natural beauty by partnering with other countries to designate key locations as anchorage points along global maritime routes and cruise tourism circuits. This strategy can significantly boost international boating traffic and elevate Indonesia’s profile in the global cruise and yachting market.
Author
Iswin Hudiarto
Principal/Lead Consultant
Principal/Lead Consultant
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