Indonesia to buy e commerce vacancy for $7 billion
Indonesia to purchase a vacant e commerce space in Australia, with a view to opening it up to e commerce businesses by 2020 article The Indonesian government will acquire a vacant Australian e commerce business space in an auction valued at $7.3 billion in a bid to fill vacancies in its tourism sector, the Indonesian Business Association (EBA) said on Thursday.
The auction was held in Brisbane, with the bidding process expected to take at least three months, the association said in a statement.
The EBA said it expected the Indonesian government to pay $3 billion for the space, which was set up in 2014 to support tourism in the country.EBA chief executive Nadi Suhaimi said the deal was a milestone for the country, which has struggled with the loss of hundreds of millions of dollars in tourism revenue.
“Indonesia has become a tourism destination and one of the main sources of revenue for tourism, and is also a major economic driver,” he said.
“But it is also becoming a very vulnerable economic centre, with high unemployment, a lack of jobs and low wages, leading to a significant increase in poverty and social problems.”
We expect Indonesia to be able to benefit from the new facility and create jobs for local residents.
“The bid is part of a $1.4 billion investment in the nation’s tourism sector to increase tourism revenues, the EBA added.”
Tourism is one of Indonesia’s biggest export sectors, with annual revenue reaching $3.4 trillion in 2020,” Suhafiz said.
The Indonesian government is looking to open up e commerce in the islands nation in the coming years.
Ecommerce turnover in Indonesia was $2.3 trillion in 2016, and Indonesia has over one billion tourists visiting the country each year, according to the Tourism Association of Indonesia.
In 2016, ecommerce revenues in Indonesia increased by 10 per cent to $1,966 million, compared to $913 million in 2015, according a Tourism Ministry report.
Indonesian President Joko Widodo said the investment in tourism would help to create jobs and revive the economy.”
It will allow us to grow our economy and help Indonesia to become a leading destination in the world,” he told reporters at the time.
The country has a tourism sector with more than 5 million hotel rooms in Indonesia, but many of them are in poor condition and are being renovated to provide the best experience possible.
In a statement released last week, the Tourism Ministry said the auction would bring an additional $250 million to the Indonesian economy and would allow the government to better manage and improve the hotel sector.”
Our goal is to open more hotels, and build new hotels, which are needed to attract more foreign tourists and help improve the quality of life of our citizens,” the statement said.