CHAPTER I

INTRODUCTION

1.1 BACKGROUND

In 1997 precisely in ASEAN summit that be held in Kuala Lumpur, the

presidents of ASEAN coutry agreed about ASEAN vision 2020 to realizing the
stable region and highly competitive with equitable economic growth. AEC will
initially be applied directly at 2020, but accelerated into 2015 in accordance with
the agreement from the leaders of the member countries of ASEAN. AEC is a
foundation that is expected to develop and maximize the objectives of economic
integration in the ASEAN region and make an opportunities for member countries.
This means AEC more closer and Indonesia should be more prepared for it.
Indonesia is the one largest population in the ASEAN region. Indonesian people
has many kind of ethnic group, languange, and many customs from Sabang to
Merauke. Indonesia has a great economic strength. It became the important capital
necessary to prepare the people of Indonesia towards the ASEAN Economic
Community (AEC) by 2015. If we see from the side of Indonesias natural
resources wealth is unbeatable, still remains an attraction with natural resource that
so many can be used as asset to help Indonesia toward ASEAN Economy
Community 2015. In Indonesia has many industrial sectors that can compete in the
face of MEA in 2015, One of them is engaged in the sector of tourism. The tourism
sector has the potential in the international tourism sector. The tourism sector as
one of the sectors that influence in the construction industry, was developed in
order to improve the rate of national development. Tourism products produced by
various companies such as hotel services, transportation services, entertainment
services, services of organizing tour and etc. Provided by the community, among
others, the streets and the hospitality of the people. Provided by nature such as
landscapes, beaches, oceans, and etc. Their efforts to improve the tourism sector
can encourage the community to more developing the region, better utilize existing
resources and more developing the already existing cultures. Tourism as a sector of

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 life, has taken an important role in the economic development of countries in the
world. Progress and prosperity of the higher that make tourism as a fundamental
part of human needs or lifestyle. The potential of Indonesia has can be seen from
the improved competitiveness, especially in the category of culture (cultural and
heritage), natural resources (rich natural resource). The potential for Indonesia
raises confidence in the era of AEC 2015. But with these opportunities, arising out
of few of the challenges that might occur in the era of the MEA, which increases
the ability of Indonesia in developing tourism sector , especially in remote areas
that could be potential in the tourism sector in Indonesia.

1.2 PROBLEM

Based on the introduction above, the issues to be discussed at this paper is :

1. Has indonesias tourism sectors ready for in the face of AEC 2015 ?
2. Whats the problems are being faced by Indonesia in tourism in the face of AEC
2015?
3. What is the cause of tourism in rural area of Indonesia is less exposed or less
attractive for tourist?
4. How is the government's efforts in developing tourism in the rural area of
Indonesia in the face of AEC 2015?

1.3 PURPOSE

Based on the problem above, the purpose of this paper is :

1. To determine whether the Indonesia tourism sector is ready to face AEC 2015
2. To determine any problems that occurred in the Indonesia tourism sector in the
face of aec
3. To determine the cause of tourism in rural area of Indonesia are less well known
and less attractive for tourists
4. To determine the government's efforts under developing tourism in the rural area
of Indonesia in the face of AEC 2015

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 CHAPTER II
DISCUSSION

2. Develop Tourism Industry in Remote Area to Face Asean Economic

Community 2015

AEC is getting closer and Indonesia should really prepare for all aspects of all
sectors in the face of AEC. If we see from the side of Indonesias natural resources
wealth is unbeatable, still remains an attraction with natural resource that so many
can be used as asset to help Indonesia toward ASEAN Economy Community 2015
especially in remote area. Indonesia has many industrial sectors that can compete in
the face of MEA in 2015, One of them is engaged in the tourism sector. The
tourism sector has the potential in the world's international tourism. It is important
for the Indonesian tourism industry to increase its contribution to the gross
domestic product (GDP) as this will trigger more foreign exchange earnings and
provide employment opportunities for the Indonesian people. Tourism can aid the
economic growth by providing foreign currency receipts to finance to purchase the
essential imports, increasing local income and employment, and government
revenue from taxation and stimulating investment. The tourism industry in
Indonesia has expanded as a prospective contributor for earning of a number of
areas. Nowadays, tourism is not only potential in Bali but also probable in all parts
of Indonesia especially in remote area. Tourism industry becomes more prospective
sector in Indonesia.

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 from the above table, we know that tourism effect for economy in indonesia. We
sure about the highest incoming foreign exchange is from tourism sector

Impact of Tourism on the Economy are :

1. Foreign Exchange Earnings

Spending on tourism will effect to economies of local communities will

grow and become a stimulus to invest and effect to grow as the growing
financial sector and other economic sectors.

2. Contributions To Government Revenues

Tourism's contribution to government revenues can be broken down into

two, namely: direct and indirect contributions. Direct contributions are
generated by taxes on income from tourism employment and tourism
business, and by direct levies on tourist such as departure taxes. Indirect
contributions come from taxes and duties levied on goods and services
supplied to tourist.

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` 3. Employment Generation

The rapid expansion of international tourism has led to significant

employment creation. Tourism can generate jobs directly through hotels,
restaurant, taxis, and souvenir sales and indirectly trough the supply of goods
and services needed by tourism related business.

4. Stimulation of infrastructure invesment

Tourism can induce the local government to make infrastructure

improvements such as better roads, electricity, telephone and public trasnport
network. This can improve the quality of life for residents as well as facilitate
tourism

Foreign tourist arrivals in Indonesia, 2007-2015:

2007 2008 2009 2010 2011 2012 2013 2014 2015

ForeignTourist
5.51 6.23 6.32 7.00 7.65 8.04 8.80 9.44 9.73
(in a million)

The above table shows that the number of foreign tourist arrivals in Indonesia has
been growing steadily from 2007 to 2015

In the Travel & Tourism Competitiveness Report from the World Economic
Forum, which "measures the number of factors and policies that enable the
sustainable development from the sector of travel and tourism, which in turn,
contribute to the development and competitiveness of the country," Indonesia
jumped from rank 70 in 2013 being ranked 50 in 2015, a remarkable progress. Lack
of proper infrastructure in Indonesia is an ongoing problem. Infrastructure in Bali
and in Jakarta remarkable enough yet outside the Bali and Jakarta, most of the
infrastructure in this country is less feasible, especially in eastern Indonesia due to
lack of airports, seaport, roads, and hotels. The lack of connectivity within and
among island means there are a large number of regions in Indonesia with tourism
potential that can not be approached easily. The government is less cares about the
remote areas, sometimes the government just pay attention to areas that have

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already become a world tourism center known as Bali and Jakarta. Whereas remote
areas have a lot of natural resources to make Indonesia tourism potential to attract
tourists to come to Indonesia. Many remote areas of natural resources, such as the
many mountains, beaches, national parks are beautiful but there are still many
obstacles . Such as :

Lorentz nationals park. Lorentz nationals park is the biggest national park in
souteast asia. The park is still not mapped, explored and there are many native
plants, animals and culture. In 1999 the national park was accepted as a UNESCO
World Heritage Site. Lorentz was appointed as a national park in 1997, so the
facility for the convenience of visitors is still very limited, and not all objects and
natural tourist attraction in this national park have been identified and developed. In
addition, the existence of glaciers on Puncak Jaya, also became its own uniqueness.
Noted, Lorentz National Park is one of three places in the world that have glaciers
in the tropics. So is the river that disappears until a few kilometers into the ground
in Baliem and be unique. There are about 34 types of vegetation in the Lorentz
National Park, such as swamp forest, river, sago forest, peat forests, coral sand
beaches, rain forests of flat land / slope, rain forest on the hill, heath forests,
mountain forests, grasslands, and lichens. Explore the mangrove forests ,see the
beauty of Habema lake, visit tropical glaciers, bathing in waterfalls. See the beauty
of the flora in this national park (nipa (Nypa fruticans), mangroves (Rhizophora
apiculata), Pandanus julianettii, Colocasia esculenta, Avicennia marina, Podocarpus
pilgeri, Nauclea coadunata etc). See the habitat of wild animals directly (31 species
of dove / pigeon, 30 species of parrots, the species 13 shrimp birds, 29 species of
honey birds, and 20 endemic species). You can also enjoy typical culture of some
tribes living at this national park area such as Nduga, Asmat, Sempan, Dani Barat
and Amungme tribe and there are a camping area. This nature tourism has a strong
potential for tourism industry and the world has already admitted but not many are
visited because the access for transportation is quite difficult to get to Lorentz
National Park but it will be an extraordinary experience. It is accessible using
pioneer flight from Timika heading to the north of Lorentz National Park at Panian
district. Or you can take a flight heading to the south of it at Merauke district. You

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can take another route by sea using boat heading to Port Sawa Erma. As you get to
the port, you need to go on foot to several locations in Lorentz National Park.

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 Indonesia's tourism sector contributes for the approximately 4% from the total
economy. In 2019, the Indonesian government wants to increase this number is
doubled to 8% of GDP, the number of visitors should be increased two-fold to
approximately 20 million. In order to achieve this target, the government will focus
on improving infrastructure remote area in Indonesia (including information
technology infrastructure and communications), access, health and hygiene and also
improve the online promotional campaigns (marketing) in foreign countries. The
government also revised the visa-free access policy in 2015 to attract more foreign
tourists. The government wull focus on :

1. Product Development and entrepreneurship

The objective of development of products and services are addressed at
the activities of interpretation. The interpretation is some attempts to explore an
understanding of an tourism object, so that someone is able to react and generate
a positive relationship with regard to nature and environment. In order to create
a positive relationship, it requires an interpreter, who served as an explanatory
and an interpreter an the objects to the visitor. he interpretation can strengthen
the knowledge of visitors and improve their behavior Development of a tourism
is associated with the entrepreneurial ability of the local people. The
entrepreneurial ability significantly determine the progress of economic
development It could also sell the handicrafts for the souvenirs for tourists who
come that will make others brought souvenirs will be interested and want to
come to the remote areas.
2. Infrastructure
In remote area the infrastructure inadaquate such like difficult access
road, to hard to find the restaurant, inn or the distance is too far away. In the
National Tourism Development Master Plan Year 2010-2025, the infrastructure
includes public infrastructure, public facilities, and tourism facilities in remote
area. The facilities and accommodation are the equipment and means need to be
provided in tourist destination areas. The facilities and accommodation in the
village may be a homestay, restaurant or cafeteria, shop, souvenir or craft,
internet, facilities and equipment to travel, discussion rooms, camping sites,
information centers, places of worship, and a rest area.

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3. Transportation
In remote area access for transportation to that area is very difficult even
therere no transportation. Lack of airport and seaport that make us difficult to
go there, because that area undiscovered and make the tourist is too lazy to go
to there and because the access is inadaquate sometimes it can make the cost
become very expensive
Seaport and airport making it easy for tourists who want to come there.
The availability of vehicles to access there as easily as a car or motorcycle that
can be rented.
4. Promotion
Promotion is an effort to introduce, socialize, and involve all
stakeholders in tourism activities. Community is increased their consciousness
for enjoying, feeling, and involving in tourism activity. In the promotion, all
stakeholders work together to synergize their potential to operate, develop and
maintain a sustainable tourism. Hotels and restaurants, travel agency, airport,
airline, seaports, bus terminals, or tourism offices in each province can provide
information about national parks and other destination in their region. use of
social media provide a new perspective on the tourism promotion. The
promotion through social media to give effect to both the consumer and supplier
sides. From the consumer side, it helps the travellers in a travel planning
process. While from the supplier side, it helps in the promotion, management
and distribution, thereby increasing competitiveness. Both sides of the
promotion should be conducted proportionally in order to generate benefits in a
sustainable tourism.
5. Education
Providing education and socialization for local residents or workers.
Although on the island of Bali and luxury hotels in Jakarta, mostly the native
who work in the tourism sector is quite fluent in English (and even other foreign
languages), in areas more isolated the native difficult to communicate with the
tourists. Therefore, focusing on learning English will help overcome this
situation.
6. Security

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 The government should give policy so that visitors feel safe to travel. As
terrorist incidents in Indonesia. A series of terrorist attacks aimed at attacking
the immigrants from Western countries (Bombing at Bali 2002/2005 and the
Ritz-Carlton / Marriott, 2009 in Jakarta) succeeded for the restrict the arrival of
foreign tourists because many foreign tourists from the Western countries do not
want to make Indonesia as a tourist destination in the months after the incidents
of violence.

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 CHAPTER III
CONCLUSION

Develop tourism industry in remote area can increase both an economic

activity and an environmental conservation.The number of foreign and domestic
tourists will increase. Development of tourism industry in remote area can be
done through the following efforts: Product development activities ,
Development of entrepreneurship.The infrastructure and accommodation
development requires spesific attention with regard to the carrying capacity of
the environment. Safety and the goverment make a policy. Promotion is the
most important part of the tourism management in the village. The promotion
intend not only to increase the number of visits, but also to develop an
awareness about conservation vision to visitors. The more parties involved,
promotions can build an understanding of environmental and cultural
conservation through tourism services. Fix the transportation like make a seaport
and airport to make the tourist easier to go there. And the education like the skill
in languange. With the increasing number of foreign tourists (both foreign
tourists and business people) combined with GDP growth oand investment
growth, there is an increasing demand for the hotel, as well as conference venues
and exhibitions. If the target of Government greeted 20 million foreign tourists
in 2020 is achieved then there is a great need for the hospitality industry of this
country. Furthermore, the ASEAN Economic Community (AEC), which will
begin in late 2015, implying a more intensive trade relations in the region. And
Indonesia tourism is also increasing

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BIBLIOGRAPHY

https://en.wikipedia.org/wiki/Lorentz_National_Park
http://whc.unesco.org/en/list/955
http://www.kemenpar.go.id/userfiles/file/test/LAKIP-
KEMENPAR%202015.pdf
http://www.indonesia-investments.com/id/business/business-
columns/tourism-in-indonesia-one-of-indonesias-untapped-potentials-
part-i/item630?

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