Indonesia to Launch Tourism Insurance Pilot Project in Labuan Bajo

Enhancing Destination Competitiveness and Risk Management

The Indonesian government is moving forward with plans to implement a comprehensive tourism insurance program in Labuan Bajo, a designated priority tourism destination, starting in 2026. This initiative is being led by the Coordinating Ministry for Economic Affairs through a Focus Group Discussion (FGD) involving multiple stakeholders from various sectors.

Key Objectives and Stakeholders

The tourism insurance pilot project aims to address several critical aspects of the tourism industry:

1. Risk Mitigation: Providing comprehensive financial protection for both tourists and tourism businesses
2. Quality Standards: Enhancing safety and security measures in tourism operations
3. Competitiveness: Improving Labuan Bajo's global market appeal through enhanced risk management
4. Industry Professionalism: Promoting best practices in tourism management and operations

The FGD brought together key stakeholders including representatives from:

• Otoritas Jasa Keuangan (OJK)
• Badan Riset dan Inovasi Nasional (BRIN)
• Local government authorities
• Tourism business associations
• Transportation sector representatives

Implementation Strategy

Herfan Brilianto, Assistant Deputy for Tourism Development at the Coordinating Ministry for Economic Affairs, emphasized that the selection of Labuan Bajo for this pilot project aligns with its status as a National Priority Tourism Destination as outlined in the RPJMN. The location was chosen due to its diverse tourism risk profile and potential for demonstrating effective risk management strategies.

The proposed tourism insurance program is expected to:

1. Provide comprehensive risk coverage for tourists and tourism operators
2. Enhance crisis management capabilities in the tourism sector
3. Improve overall destination competitiveness in the global tourism market
4. Foster industry professionalism through standardized risk management practices

Industry Perspectives

Abdul Haris, Director of PT Jasaraharja Putera, highlighted the strategic importance of tourism insurance in creating a secure environment for visitors and enhancing confidence in Indonesian tourism destinations. He emphasized that the insurance program would not only provide financial protection but also contribute to better risk governance and sustainability of the tourism industry.

The development of this pilot project demonstrates Indonesia's commitment to strengthening its tourism sector through innovative risk management solutions while maintaining high standards of safety and security for visitors.