Government Policies on Agro-Tourism in Indonesia
ROSLINA
Department of Management, Faculty of Economics and Business
Universitas Lampung
Jl. Soemantri Brojonegoro 1, Bandar Lampung, Lampung, 35141
INDONESIA
RITA NURMALINA
Department of Agribusiness, Faculty of Economics and Management
Institut Pertanian Bogor
Jl. Kamper, Wing 4 Level 5, IPB Darmaga Campus, Bogor, 16680
INDONESIA
MUKHAMAD NAJIB
Department of Management, Faculty of Economics and Management
Institut Pertanian Bogor
Jl. Agatis IPB Darmaga Campus, Bogor, 16680
INDONESIA
YUDHA HERYAWAN ASNAWI
School of Business
Institut Pertanian Bogor
Jl. Raya Pajajaran, Bogor, 16151
INDONESIA
Abstract: - In developing countries, tourism positions the government not just as a policymaker, but also as a
party that assists in the implementation of policies. Government initiatives towards the promotion of agro-
tourism, for example, are implemented by agro-tourism-related legislation and policies. However, agro-tourism
development has not been optimal due to a lack of communication and coordination between parties, as well as
inadequate execution of legislation or regulations controlling agro-tourism. The purpose of this study was to
assess and examine government agro-tourism legislation and policies in Indonesia. The study is qualitative in
nature, evaluating and analysing ten government's agro-tourism legislation and policies, with data collected
through document analysis and in-depth interviews and analysed descriptively. The findings demonstrate that
the government's agro-tourism regulations include controlling cross-sectoral collaboration in agro-tourism
development, certification for agro-tourism guides, the establishment of agro-tourism commissions, and agro-
horticulture business arrangements, among other things. Regulations and policies are ineffectual because there
is a lack of engagement, coordination, and synergy among the parties involved in agro-tourism. Collaboration is
required not just in terms of bureaucracy, but also in terms of resources in order to establish, promote, and
maintain agro-tourism sustainability. The suggestions and limitations of the current study are also discussed.
Key-Words: - agro-tourism, governance policy, regulation, tourism development, environmental concern
Received: May 21, 2021. Revised: December 6, 2021. Accepted: January 8, 2022. Published: January 10, 2022.
1 Introduction
It is widely accepted that tourism is intertwined with
political, economic, and social factors that affect a
variety of stakeholders. The government's role in
tourism is expanding, not just in terms of
economics, but also in terms of sociocultural,
political, and environmental awareness [1]. With
tourism-related institutions, the government plays
an important role in tourism development [2] and
has the capacity and power to support and
coordinate various stakeholders [3].
Tourism is extremely susceptible to distortions
and failures, emphasizing the critical role of
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government [4]. Government engagement in
tourism is evident in activities such as providing
infrastructure and amenities, defining policies,
planning, funding, promotion, and regulation,
developing tourist destinations, identifying tourist
sites, and establishing human resource requirements
for tourism [3]–[5].
However, government involvement in tourism
frequently encounters difficulties due to the
implementation of established policies, a lack of
coordination, weak governance, and top-down
planning [1], [5]. Establishing laws that favor a
particular set of individuals or that result in an
excessively complex bureaucracy can result in the
tourism sector's failure [5]. The government's failure
has a detrimental effect on the tourism sector in the
same way that natural and environmental disasters,
terrorism, contagious diseases, and conflict have a
detrimental effect on the tourism industry [6].
Tourism in Indonesia is classified under three
product lines: nature tourism, cultural tourism, and
man-made tourism, as well as 23 more tourism
activities, including agro-tourism [7]. Agro-tourism
is a term used to describe a variety of activities
produced on farms to attract visitors and engage
them in the agricultural process for recreational or
leisure purposes [8], [9]. Agro-tourism is gaining
popularity and recognition as a method for
agricultural development and rural development
[10], [11]. Since 1989, Indonesia has been
developing agro-tourism through collaboration
between the Ministry of Agriculture and the
Ministry of Tourism, Post, and
Telecommunications. In Indonesia, agro-tourism is
regulated by a number of government agencies,
including the Ministry of Agriculture, the Ministry
of Tourism and Creative Economy, and the Ministry
of Public Works and Public Housing.
In Indonesia, marketing agro-tourism is
inextricably linked to the government's support
through various government policies and initiatives
in collaboration with tourism business operators.
However, tourism businesses in a number of
Indonesian tourist sites have been deemed to be
underdeveloped due to a lack of tourists using
tourism businesses' facilities and services [7].
Government policies promoting agro-tourism are
represented in agro-tourism-related rules and
policies. [12] stated that policy is determined by the
government's willingness or inability to act.
Governments decide policies in developing nations,
and their effectiveness is defined by the extent of
stakeholder participation and collaboration, as well
as the evaluation and effective execution of
decisions [13]. Thus, the government can be defined
as the party that not only formulates policies but
also assists in its implementation [14]. There is still
a dearth of study on agro-tourism policies (see, for
example, [15], [16]), owing to the fact that the
majority of policy research is conducted on tourism
for recreation and village tourism [4], [17]–[21].
Therefore, the purpose of this study was to assess
and examine the execution of government agro-
tourism legislation and policies in Indonesia.
2 Tourism Policy
Government policy is a strategy of action that
serves as a guide for selecting from numerous
available possibilities [14] or a practice of
translating official assertions into quantifiable and
actionable indicators [22]. The participation and
collaboration of stakeholders in the implementation
of policies determines success, however in
developing countries, policies are generally
established by the government [13].
[23] stated tourism policy is defined as a set of
rules, norms, directions, objectives, and
development or promotion tactics that serve as a
framework for collective and individual actions that
affect long-term tourism development. It serves as
a road map for the tourism industry in terms of
government, development, and promotion [13].
Tourism policy will determine the actions of a
country, province, district, or destination in
developing and promoting tourism [14]. Tourism
policy will define the roles of tourism operators,
create activities and standards of behaviour for the
benefit of tourists, and provide broad direction and
guidance to all stakeholders [24]. The goal of
tourism policy is to ensure that visitors receive the
best possible service and have an unforgettable
experience [23].
3 The Role of Government
Tourism's implementation requires the cooperation
of both the public and private sectors. The growth
of tourism has expanded the government's role
beyond economics to include sociocultural
responsibilities, political accountability, and
environmental concern [1]. The government has a
tourist agency that is responsible for tourism
development and plays a critical role in its growth
[2]. The government's role in tourism development
is critical, particularly in terms of legislation,
financing, planning, and tourism industry policies
[14]. However, there are various inadequacies in
this respect, including the government's top-down
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decision-making, ineffective planned
implementation, a lack of coordination, and
inadequate governance, which are frequently
expressed to the government [5].
Previous research on the government's role in
tourism has been conducted. For example, the
Korean government seeks to bridge the divide
between cities and villages by promoting urban-
rural exchange programmes, tourism, or leisure
activities such as green businesses and farm
tourism, in rural, mountainous, and coastal areas
[25]. [4] examined the Honduran government's role
in agro-tourism development through a top-down
strategy (central and local government) and
bottom-up initiatives for agro-tourism
development. In this situation, the bottom-up
method incorporates the private sector, specifically
farmers and tourism operators, such as hotel and
restaurant managers and travel agencies. The
research utilised stakeholder interviews to ascertain
the government's role in tourism growth. The
results of the interviews were utilised to create a
semi-structured questionnaire to help better
understand the government's role. The findings
indicate that the government is involved in policy
formulation (registration and licencing, taxes, and
bureaucratic procedures), marketing and
advertising, financial opportunities, information
access (education and training, statistical data
gathering), and infrastructure development.
[26] examines institutional collaboration in
Ghana's tourist sector in terms of stakeholders'
visions for tourism development, collaboration and
coordination within the public sector and between
the public and private sectors, as well as the
barriers to and facilitators of collaboration and
coordination. According to the findings of
extensive interviews with key stakeholders and an
examination of policy papers, there is a low level of
collaboration across tourism institutions in Ghana,
both in the public and commercial sectors. [27]
looks into the impact of government policies on the
competitiveness of destinations in Central
America's emerging countries, including Belize,
Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua, and Panama. These countries are
attempting to restructure their economies and shift
away from agriculture and toward service-based
businesses. The findings of the study show that
government policies influence destination
competitiveness in a variety of ways, with some
policies having a greater impact than others, for
example, increasing transparency about the level of
corruption has a positive impact on destination
competitiveness, whereas lowering taxes does not.
Policies that are either overly restrictive or too
liberal can hasten or slow the development of a
destination, lowering its competitiveness. Tourism
has emerged as a major driver of economic growth
and job creation, demonstrating the importance of
being competitive in the marketplace. In order to
succeed, tourism destinations must learn to think
more like businesses and innovate in order to
develop new products, markets, and customers.
Governments also play important roles in tourism
development, with involvement ranging from a low
to a high level depending on the country [28].
4 Methodology
The study is qualitative in nature, consisting of an
examination of ten agro-tourism legislation and
policies. Through the document analysis, data were
gathered by involving skimming (superficial
examination), reading (thorough examination), and
interpretation of the information. In addition,
unstructured interviews with twelve key informants
with expertise, knowledge, and power in
policymaking were also done as part of this study.
Government officials, academics, and agro-tourism
operators, such as lodging, transportation, and agro-
tourism actors, were among the informants. In-
depth interviews with policymakers and users of
agro-tourism initiatives were performed to assess
the programmes' implementation. The collected
data were merged and descriptively analysed,
entailing both content and thematic analysis. The
former refers to the process of categorising data,
whereas the latter is a type of pattern recognition
within the data, with emerging themes serving as
the categories for analysis [29], [30].
5 Results and Discussion
Various parties are involved in the development of
tourism, particularly government assistance for
policies guiding the growth of agro-tourism. This
document analysis, policy analysis in particular, is
a type of applied study aimed at better
understanding problems and finding better
solutions [31], providing information that will aid
in the execution of policies. Policy evaluation tries
to determine whether policies are being
implemented properly and to determine whether
policy adjustments are necessary [32]. The purpose
of this study's policy analysis was to assess the
policies that have been designed and executed to
promote agro-tourism.
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The following regulations and policies were
examined in this study.
1. Joint Decree of the Minister of Agriculture and
the Minister of Tourism, Post and
Telecommunications Number: 204/KPTS/HK.
050/4/1989, Number: KM.47/PW.004/MPPT-
89 concerning the Coordination of Agro-
Tourism Development. This decree regulates
cooperation and coordination in agro-tourism
development.
2. Decree of the Minister of Agriculture Number
319/Kpts/KP.150/2003 concerning the Agro
Tourism Commission. The establishment of an
agro commission was specified in this
resolution as a means of achieving agro-
tourism aims. This order establishes the agro
commission, which is chaired by the Secretary
of the Agricultural Planning Bureau, and the
Daily Executive, which is chaired by the Head
of the Ministry of Agriculture's Planning and
Finance Bureau. The agro-tourism
commission's secretariat is based at the
Ministry of Agriculture's Bureau of Planning
and Finance.
3. Decree of the Minister of Agriculture Number
357/Kpts/HK.350/5/2002 concerning
Guidelines for Plantation Business Licensing.
4. Decree of the Minister of Agriculture Number
348/Kpts/TP.240/6/2003 concerning
Guidelines for Horticulture Business
Licensing. Article 1 paragraph 6 defines agro-
tourism as an activity that employs
horticulture industries as a tourist attraction, as
defined in Article 4 paragraph 1 and paragraph
4.
5. Law of the Republic of Indonesia Number 13
of 2010 concerning Horticulture. This Law
states about horticulture-based agro-tourism
(article 1 paragraph 18), agro-tourism as a
horticulture business (article 50), agro-tourism
business (article 77 paragraphs 1- 6).
6. Government Regulation of the Republic of
Indonesia Number 110 of 2015 concerning
Agro Horticultural Tourism Business. This
government regulation completely regulates
horticulture-based agro-tourism businesses,
agro-tourism business actors, agro-business
units, rights, and obligations, as well as
guidance and supervision.
7. Regulation of the President of the Republic of
Indonesia Number 64 of 2014 concerning
Strategic Coordination of Cross-Sectoral
Tourism Implementation. The government
coordinates strategic efforts across sectors to
ensure that planning, as well as
implementation of policies, programmes, and
tourism, achieves harmony and integration
(article 1 paragraph 3)
8. Decree of the Minister of Manpower and
Transmigration of the Republic of Indonesia
Number KEP.123/MEN/V/2011 concerning
Stipulation of Draft of Indonesian National
Work Competency Standards for Tourism
Sector in the Field of Agro Tourism Guidance
as National Work Competency Standards. This
decree serves as a reference for policy
formulation and human resource development
in the field of agro-tourism scouting.
9. Regulation of the Minister of Tourism of the
Republic of Indonesia Number 11 of 2015
concerning the Enforcement of Indonesian
National Work Competency Standards in the
Tourism Sector (SKKNI). This regulation
contains 30 SKKNI standards in the field of
tourism. It is stated in article 3 paragraph 12
about the implementation of the SKKNI
standards in the field of agro-tourism
guidance.
10. Regulation of the Minister of Tourism of the
Republic of Indonesia Number 1 of 2018
concerning Amendment to the Ministerial
Regulation concerning the Enforcement of
Indonesian National Work Competency
Standards in the Tourism Sector. There are
two additional SKKNI to 32 SKKNI standards
in this regulation, where agro-tourism
guidance is regulated in article 3 paragraph 10.
The following are findings from a study of ten
policies and interviews with key informants
regarding agro-tourism policies. To begin, agro-
tourism development necessitates collaboration
among diverse groups. Agro-tourism is a hybrid
tourism idea involving two ministries: the Ministry
of Tourism and the the Ministry of Agriculture. The
Joint Decree of the Ministers of Agriculture and
Tourism, Post, and Telecommunications Number:
204/KPTS/HK. 050/4/1989, Number:
KM.47/PW.004/MPPT-89 concerning Agro
Tourism Development with coordination between
the two ministries. Planning, utilising, nurturing,
and developing agro-tourism activities, as well as
financing for cooperation, are all part of the
coordination process. Although the development of
agro-tourism has been regulated and specified in
the cooperation of the two ministries from the
beginning, this partnership did not continue in
practise due to cabinet changes. The Ministry of
Agriculture is still focused on boosting
productivity, but other parts of agriculture are less
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important, and cooperation between the two
ministries has been lacking.
Furthermore, the Presidential Regulation of the
Republic of Indonesia Number 64 of 2014 about
Strategic Cooperation of Cross-Sectoral Tourism
Implementation regulates cross-sectoral
coordination. Despite the fact that cross-sectoral
coordination is controlled by a Presidential
Regulation, in reality, cross-sectoral coordination is
not optimum and tends to demonstrate conspicuous
sectoral egos among their respective authority. As a
result, tourist implementation programmes must be
synchronised, harmonised, and integrated to create
synergy. According to the presentation, cooperation
is required in the development of agro-tourism,
with each ministry minimising its sectoral ego in
order for agro-tourism to develop.
Second, in order to enhance agro-tourism, the
Minister of Agriculture issued Decree No.
319/Kpts/KP.150/2003, which constituted an agro-
tourism commission. Its goal is to promote the
growth and development of agro-tourism.
However, the agro-tourism commission's role and
sustainability in the development of agro-tourism
are not well defined. The existence of an agro-
tourism commission is critical in assisting
Indonesia's agro-tourism development. It is vital to
establish cooperation between the agro-tourism
commission and the local government during its
implementation in order to identify the issues that
have arisen in the development of agro-tourism in
the area.
Third, the attractions that exist in agro-tourism
of food crops, plantations, horticulture, fisheries,
and animal husbandry may have the ability to
attract agro-tourism visitors. The Government
Regulation of the Republic of Indonesia Number
110 of 2015 concerning Agro Horticultural
Tourism Business regulates horticultural agro-
tourism, which includes fruits, vegetables,
medicinal plant ingredients, and floriculture, which
includes mushrooms, mosses, and aquatic plants
that serve as vegetables, medicinal plant
ingredients, and/or aesthetic materials. The Decree
of the Minister of Agriculture Number
357/Kpts/HK.350/5/2002 concerning Guidelines
for agricultural enterprise licencing regulates
plantation agro-tourism. Plantation business, often
known as agro-tourism, is an activity that uses
plantation business as a tourist attraction to
diversify the business, improve job possibilities,
and promote plantation business, according to
Article 1 paragraph 9.
Fourth, when serving visitors visiting agro-
tourism, agro-tourism service providers must equip
human resources with professional knowledge,
skills, and attitudes. As a result, tourists will have
an easy time having a memorable and authentic
experience. Agro-tourism advisors who can design
agro-tourism activities must be knowledgeable
about agro-tourism and effective at delivering that
information to tourists so that they obtain a
thorough understanding of agro-tourism and
agriculture. The Indonesian National Work
Competency Standard (SKKNI) for agro-tourism
guides was established by the government in an
effort to promote competent tour guides in the
sector of agro-tourism. This is governed by the
Minister of Tourism of the Republic of Indonesia's
Regulation No. 11 of 2015 on the Enforcement of
Indonesian National Work Competency Standards
in the Tourism Sector, which has been updated by
the Minister of Tourism of the Republic of
Indonesia's Regulation No. 1 of 2018 on
amendments to Ministerial Regulation No. 11 of
2015.
The Minister of Manpower and Transmigration
of the Republic of Indonesia issued Decree Number
KEP.123/MEN/V/2011 regulating the
determination of the Indonesian National Work
Competency Standards for the tourism sector in the
field of agro-tourism guidance to become the
National Work Competency Standards. It lists
several core competencies that agro-tourism guides
must possess, including knowledge of agro-
tourism, skills in planning agro-tourism activities,
presenting information on agro-tourism activities,
guiding and interpreting agro-tourism activities, as
well as minimising tourism activities that endanger
visitors and the environment, and evaluating agro-
tourism activities.
Despite the establishment of the Indonesian
National Work Competency Standards for agro-
tourism, the number of institutions that provide
agro-tourism guide certification and
implementation locations for agro-tourism
competency testing is still quite limited. The
majority of tourism certification organisations
exclusively certify tour guides and tour leaders, not
agro-tourism guides. Because agro-tourism actors
in the regions have not certified agro-tourism
competencies, limited agro-tourism competencies,
attitudes, and knowledge may have an impact on
the transfer of knowledge and information provided
to tourists, resulting in tourists receiving
incomplete information and knowledge about agro-
tourism. The government has undertaken human
resource competency certification in the tourism
industry sector, however this is generally the sole
certification linked to the hotel industry. As a
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result, in the framework of developing agro-tourism
human resources, a finance plan is required, which
must be allocated by the government as funding for
competency assessments offered to the hotel sector.
Fifth, the Regional Tourism Development
Master Plan (RIPPARDA) in Lampung Province
does not fully incorporate agro-tourism policies and
regulations. This is due to the fact that agro-tourism
development in Lampung Province only began in
earnest in 2018. The government established an
Agro-ecotourism Regional Innovation System
(SiDa) at the end of 2018 through the Regional
Research and Development Agency, which aims to
foster innovation between government institutions,
government regions, educational institutions,
innovation-supporting institutions, the business
world, and local communities for the development
of agro-ecotourism. The absence of agro-tourism
policies and regulations has a negative impact on
the development and sustainability of agro-tourism
in Lampung Province, Indonesia.
For the development, promotion, and long-term
viability of agro-tourism, government policies are
required. This has implications for the central
government's function as a tourism
facilitator/regulator and a determinant of agro-
tourism policies. The government has issued
several regulations governing policies related to
agro-tourism, including those governing cross-
sectoral cooperation in the development of agro-
tourism, certification for agro-tourism guides, the
formation of agro-tourism commissions, and agro-
horticulture business arrangements, according to
the findings of this study. However, due to a lack of
participation, coordination, and synergy among the
parties involved in agro-tourism, regulations and
policies are ineffectively implemented. To ensure
the success of policies, the central government
must plan, coordinate policy execution, and assess
policies. The government can work with private
sectors to identify problems in the field and
expedite efforts to implement current policies.
Establishing a local working group comprised of
representatives from the public and private sectors
as well as the community would be a critical first
step [43]–[45].
Local governments, as tourism dynamists, play
a critical role in encouraging, planning, overseeing,
and evaluating the execution of central government
legislation and policies. They also play a part in the
development of agro-tourism in the region by
providing infrastructure and services. Sectoral egos
must be set aside while coordinating and
collaborating with agencies. Collaboration can
range from activity planning to resource sharing,
including finance, information, technology,
manpower, and other resources. The provision of
infrastructure and services, as well as increased
cross-sectoral collaboration for agro-tourism
development, are the top priorities for local
governments. The absence of agro-tourism from the
Master Plan for Regional Tourism Development
(RIPPARDA) will have an influence on its
development, marketing, and long-term viability in
Lampung Province. Local governments must play a
part in the planning, development, management,
marketing, and sustainability of agro-tourism so
that it can flourish and become one of Lampung
Province's main tourism potentials.
The findings indicate that government should
play a critical role in the development of agro-
tourism, particularly in terms of policy formulation,
marketing and advertisement, financial
opportunities, information access, funding, human
resources development, and infrastructure [3]–[5],
leading to agro-tourism to alleviate rural poverty
[46] and diversify economic and social activities
[47]. In so doing, government policies can
influence tourist destination competitiveness [27],
[28].
6 Conclusion
Several restrictions regulate the development of
agro-tourism, which is governed by government
policy. Regrettably, policy implementation still
demands further attention and evaluation to
guarantee that the policies established are
appropriately executed. Because institutional
coordination is still lacking, achieving synergies
between parties will be difficult. Given the limited
number of institutions that conduct competency
certification for agro-tourism guides, the
competence of agro-tourism guides who follow the
Indonesian National Work Competency Standards
requires special attention. The government, which
includes the Ministry of Agriculture and the
Ministry of Tourism and Creative Economy as
parties directly involved in agro-tourism
development, needs to improve coordination and
collaboration, not only in terms of bureaucracy but
also in terms of the resources used to develop agro-
tourism.
The findings of this current study imply that the
government increase coordination and
collaboration in terms of resources employed to
create agro-tourism in general, and specifically in
Lampung Province, Indonesia. A policy that
governs agro-tourism at the regional level is
required, as is the improvement of regional agro-
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tourism guides' competency. Certification of agro-
tourism guiding competences can improve
competency by ensuring that guides have the
attitudes, knowledge, and abilities necessary for
standardised agro-tourism with government-funded
finance schemes. To create greater public-private
partnership, the government should take the lead
and cultivate an environment conducive to
collaboration with the private sector and
community, ensuring that tourism develops
sustainably and benefits tourists, businesses, and
destinations [43]–[45]. The ability of local
governments to plan and implement sustainable
tourism will benefit local communities, business,
tourists, and environment [43].
However, there are several limitations to this
research. The findings and consequences of this
study may be widened if different methods were
employed to analyse the implementation of
government agro-tourism legislation and policies
targeted at achieving long-term tourism growth in
Indonesia. Future studies may use a quantitative
way to generalise the current findings. Other
developing countries should be studied to see if the
findings are comparable and provide more
information on the political context of local
government.
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