The government of Indonesia is progressing development of the Likupang Special Economic Zone in North Sulawesi, positioning the coastal enclave as a new centre for eco-tourism and resort investment beyond Bali, according to official investment materials published by Indonesia’s Investment Coordinating Board.
Designated under Government Regulation No 84 of 2019, the 197-hectare Likupang Special Economic Zone in North Minahasa Regency forms part of Indonesia’s priority tourism expansion programme aimed at reducing reliance on Bali and distributing visitor flows more evenly across the archipelago. The coastal site, anchored around Pulisan Bay in North Sulawesi, has been earmarked as a tourism-focused enclave with a mandate to attract private sector investment into hospitality, leisure and supporting services.
The zone is planned as an integrated destination comprising resorts, private villas, retail areas, attractions and supporting infrastructure. Official investment documents published by Indonesia’s Investment Coordinating Board present the development as a long-term resort cluster designed to combine premium accommodation with marine tourism, cultural experiences and nature-based activities. The objective is to create a self-contained tourism area capable of drawing both domestic and international travellers.
Fiscal incentives sit at the centre of the proposition. Investment materials outline tax holidays, corporate income tax reductions and import duty exemptions for eligible investors operating within the zone. Non-fiscal benefits include simplified licensing procedures and land use certainty, measures intended to lower entry barriers for foreign direct investment into hotels, mixed-use developments and related tourism facilities.
Promotional material from the Indonesian Investment Promotion Center in New York describes Likupang as “North Sulawesi’s hidden gem for eco-tourism and strategic investments”, pointing to its white-sand beaches, coral reefs and proximity to established dive sites in the province. The region lies within reach of Bunaken National Marine Park and other marine attractions that have long drawn diving enthusiasts, providing an existing tourism anchor for the SEZ.
Master planning work presented by AECOM for the Pulisan Bay tourism development outlines a phased approach to construction. The concept includes beachfront hotels, marina facilities, low-rise residential clusters and public spaces designed to connect visitors with the coastline. According to the planning material, environmental management systems and conservation zones are integrated into the layout, with an emphasis on maintaining natural buffers and coastal vegetation.
Project information published on the Pulisan Bay development website describes the site as combining coastal scenery with rolling hills and savannah terrain. This topography allows for a mix of marine tourism, outdoor recreation and event spaces within the SEZ boundary. Proposed uses include water sports, eco-trails and cultural programming intended to extend visitor stays beyond beach activities.
The academic study titled Study on Application of Touristification Concept in Likupang Tourism SEZ Development Plan examines how tourism growth can be aligned with local community participation. The paper highlights the importance of spatial planning, arguing that rapid resort development must be balanced with environmental safeguards and social inclusion. It warns that without careful management, tourism expansion risks environmental degradation and disruption to local livelihoods.
Community engagement has therefore been framed as an important element of the SEZ’s long-term viability. The study notes that local residents should be involved in planning and benefit-sharing mechanisms to ensure tourism development contributes to regional welfare rather than creating isolated enclaves.
Infrastructure works have formed part of early implementation stages. Road improvements linking the zone to Sam Ratulangi International Airport in Manado have been prioritised to improve accessibility. Investment documents indicate that travel time from the airport to Likupang is being reduced through upgraded connections, supporting the destination’s appeal to international carriers and tour operators.
While enabling infrastructure is advancing, large-scale resort construction remains in development phases. The phased model allows for gradual build-out aligned with investor commitments and market demand. Authorities continue to promote the SEZ in international forums as part of Indonesia’s broader tourism diversification policy.
Likupang is one of Indonesia’s designated priority tourism destinations under the national programme often referred to as the “new Balis” initiative. By focusing on eco-tourism, marine assets and controlled resort density, policymakers aim to differentiate the destination from more mature mass tourism markets.
The integration of fiscal incentives, master planning and environmental considerations positions Likupang as a test case for Indonesia’s next generation of tourism development. For international hotel groups and resort investors assessing Southeast Asia, the SEZ offers a combination of coastal assets, government backing and regulatory incentives within a defined geographic zone.
As planning progresses, the balance between conservation and construction will remain central to the project’s trajectory. The research literature and promotional materials alike stress that long-term competitiveness depends on protecting the very natural features that underpin Likupang’s appeal.