If you’ve been watching Indonesia closely in 2024, you’ll know it’s been a rollercoaster ride; one of political shifts, bold reforms, and economic ambitions. But if you look beyond the headlines, this has been a year where opportunities shone through the challenges, particularly for investors with a sharp eye and a little risk tolerance.
From Bali’s evolving tourism scene to the seismic shift of leadership in Jakarta, this was the year Indonesia signalled to the world: “We’re open for business, and we’re just getting started.”
A Political Earthquake: Prabowo’s Presidency and What It Means
The year began with high-stakes political drama as the nation headed to the polls in February. President Joko “Jokowi” Widodo passed the torch after a decade of unprecedented infrastructure growth and economic reform. Stepping into the spotlight was Prabowo Subianto, whose landslide victory marked the dawn of a new era.
If Jokowi was Indonesia’s builder, Subianto sees himself as the finisher; the one who takes Indonesia’s momentum and pushes it towards its goal of becoming a global economic powerhouse. His vision? Aggressive economic growth is powered by foreign investment, infrastructure expansion, and national self-sufficiency.
“Indonesia still has untapped potential, and Prabowo knows it,” says Terje H. Nilsen, co-founder of Seven Stones Indonesia, a real estate investment firm with a solid legal support system based in Bali. “His administration’s openness to foreign capital, combined with a focus on strategic sectors like renewable energy, tech, and real estate, has created strong momentum for investors. But with ambitious growth comes big questions: How sustainable is the debt-fueled model, and how much risk is too much risk?”
Bali: Moratoriums, Magic, and Smart Investment Shifts
For Bali, 2024 has been a year of transformation. A proposed moratorium on new hotel and villa developments sparked debates across the island. On one hand, the move aimed to curb overdevelopment, protect the island’s culture, and preserve its natural beauty. On the other, critics argued it could slow down investment in Bali’s booming real estate market.
But savvy investors saw an opportunity. The moratorium redirected attention towards underdeveloped areas like North and West Bali, where land prices remain attractive, and infrastructure projects, like the revived plans for the North Coast Airport, promise big returns in the coming years.
“Bali’s tourism industry is only going in a positive direction,” Nilsen adds. “People will always want to come here. What’s changing is the investment focus: smarter, sustainable projects. Luxury eco-resorts, health and wellness retreats, and tech-savvy hospitality concepts are the future.”
Foreign investors still poured into Bali in 2024. FDI reached Rp10.6 trillion in 2024, with real estate and hospitality leading the way. Even the “Tourist Levy,” a small fee imposed on foreign visitors to fund environmental conservation, wasn’t enough to dampen enthusiasm. Travellers kept coming, investors kept building, and Bali continued its evolution into a global hub for mindful, sustainable living.
Regulations: Immigration Gets a Refresh
No year-end roundup would be complete without immigration updates, particularly for those dreaming of calling Bali home. In 2024, Indonesia introduced a slew of changes to make life easier for investors and long-term travellers.
For starters, the Second Home Visa continued gaining traction, offering foreign nationals a 10-year residency option with flexible conditions. Meanwhile, immigration authorities reassured tourists that elections and political transitions would not disrupt their holiday plans.
“It’s clear the government wants to attract ‘quality tourism’ and foreign investment,” Nilsen explains. “The immigration changes are a step in the right direction, but investors should still approach with caution. Always double-check local regulations; they can shift quickly.”
The Jakarta-Java Boom: Investment Beyond Bali
If Bali is Indonesia’s jewel, Jakarta remains its economic engine. In 2024, Subianto’s administration continued the groundwork for Indonesia’s sovereign wealth fund, Danantara, a bold initiative aiming to attract over US$600 billion in foreign investments.
Attracting attention from heavyweights like the UAE, China, and Japan, the fund targets key sectors: infrastructure, renewable energy, digital transformation, and strategic manufacturing. While some investors remain cautious about political risks, others are diving in, enticed by Indonesia’s promise of high returns in untapped markets.
The country’s green energy shift also gained momentum, with international partnerships driving investments into solar, hydro, and geothermal projects, particularly in Java and Sumatra. Expect this trend to accelerate in 2025 as Indonesia positions itself as a regional leader in renewable energy.
Local Elections: What Happened in Bali?
Closer to home, Bali’s gubernatorial elections in November returned Governor Wayan Koster for a second term. A staunch advocate for cultural preservation and sustainable growth, Koster doubled down on policies aimed at protecting Bali’s delicate ecosystem while improving infrastructure in less-visited areas.
His re-election reassures many that Bali’s development will continue but with a sharper focus on long-term sustainability. For businesses, this means opportunities in eco-tourism, health and wellness, and community-focused projects.
“Governor Koster’s vision aligns with where the market is heading,” Nilsen observes. “Smart investors are shifting away from mass tourism and looking at quality, smaller-scale developments. There’s a real chance to leave a positive legacy here.”
Bilateral Relations: Indonesia Finds Friends in the Right Places
On the global stage, Indonesia has been strengthening its partnerships, particularly with China. In 2024, the two nations signed major deals worth over US$10 billion, focusing on new energy, tech infrastructure, and food security.
These agreements signal Indonesia’s intent to leverage its natural resources and strategic location as part of the global supply chain. For investors, the ripple effect is clear: opportunities in logistics, industrial zones, and tech-driven solutions are ripe for the picking.
2025 and Beyond: What’s Next for Indonesia?
So where is Indonesia heading in 2025? The outlook is promising but not without challenges.
- Sustainable Tourism in Bali: With the moratorium in place, expect growth in North and West Bali. Eco-friendly developments, boutique resorts, and cultural tourism will dominate the market;
- Infrastructure Boom: Subianto’s commitment to infrastructure will create opportunities beyond Bali, particularly in Java, Sumatra, and Kalimantan;
- Green Energy: Renewable energy will remain a hot investment sector, as Indonesia works to balance growth with climate commitments;
- Regulatory Watch: Investors should stay agile. While immigration and investment laws are improving, Indonesia’s regulatory landscape remains dynamic.
Final Thoughts: Opportunities for the Brave
2024 has been a year of change, political, economic, and cultural. Indonesia is positioning itself for the future, and Bali remains the tourism industry’s shining star, albeit one in transition.
Investors willing to think ahead, act sustainably, and adapt to shifting policies will find themselves well-rewarded. But as always in Indonesia, the key lies in patience, relationships, and respect for the unique rhythms of the archipelago.
“Indonesia isn’t for everyone,” Nilsen concludes. “But for those who get it right, it’s one of the most exciting and rewarding places to invest in the world. The trick is understanding the balance between risk and reward, growth and sustainability.”
So, as the sun sets in 2024 and rises on a new year, one thing is clear: Indonesia’s story is still being written, and the chapters ahead look pretty compelling. If you’d like more insights and consultations geared to your specific areas of interest and investment, get in touch with Seven Stones Indonesia via hello@sevenstonesindonesia.com, your partner in growth for 2025.
Sources: The Jakarta Post, Seven Stones Indonesia, Tempo, ANTARA News, World Bank Indonesia Economic Outlook Report (2024), ASEAN Briefing
Stock image by BoliviaInteligente on Unsplash