The prospects of Business and Economic Development in Indonesian Geoparks

Executive Summary

Indonesia’s Geoparks represent a unique and evolving opportunity to combine natural conservation with sustainable economic growth. As the global demand for eco-tourism, green technologies, and conservation efforts continues to rise, the Indonesian Geoparks sector is expected to play an increasingly important role in the country's economic development by 2025. This publication summarizes the current state of the Geoparks economy, its key drivers, industries poised for growth, and the challenges that must be overcome to ensure the sector's future success. By examining the major opportunities and providing strategic recommendations, this assessment highlights the role of Geoparks as an engine for local development, job creation, and global sustainability efforts.

Overview of Indonesian Geoparks and the Geopark Economy Concept

Indonesia’s Geoparks are designated areas that leverage the country’s rich geological and natural heritage to promote sustainable development. These regions, which include areas of volcanic activity, rich biodiversity, and culturally significant landscapes, are developed under the UNESCO Global Geopark initiative. The Geoparks concept blends the protection of geological heritage with the promotion of eco-tourism, local businesses, and environmental education. In Indonesia, these Geoparks serve as both conservation sites and platforms for economic growth, bringing together community development, tourism, and research.

The Geopark Economy refers to the integrated economic activities that arise from these areas, where sustainability is paramount. This model is designed to ensure that economic progress does not come at the cost of environmental or cultural degradation. Instead, it fosters long-term prosperity through the responsible use of natural resources, sustainable tourism, and green industries. By focusing on eco-tourism, agriculture, and clean energy, the Geopark Economy aims to generate income for local populations while preserving the natural and cultural assets that make these regions unique.

The Geopark Economic Development Model at a Glance

At the core of Indonesia’s Geopark Economic Development Model is the concept of sustainable growth that emphasizes local engagement, environmental preservation, and long-term economic viability. The model integrates the local community into economic activities through training, entrepreneurship, and participation in the governance of the Geopark itself. By involving locals in decision-making and business development, Geoparks create a sense of ownership and stewardship, which is crucial for the success of conservation and economic initiatives.

In terms of industry focus, the model encourages sectors like eco-tourism, agriculture, and renewable energy, which align with the natural assets of the Geoparks. For example, eco-tourism leverages the region’s natural landscapes, offering opportunities for hiking, wildlife observation, and adventure sports, while agribusinesses benefit from the fertile volcanic soil that supports organic farming. Meanwhile, renewable energy, particularly geothermal and solar, is increasingly being integrated into the Geopark framework to power local communities sustainably. The Geopark Economic Development Model is not just about creating new industries; it’s about fostering a balance between economic growth and environmental protection.

Key Resources Driving the Geopark Economy

Indonesia’s Geoparks are rich in natural resources that can drive sustainable economic growth. Among the most valuable resources are regenerative timber and sustainable forestry. These resources enable the development of green industries like eco-friendly furniture production, non-timber forest products, and agroforestry. By adopting sustainable harvesting practices, local communities can generate income while ensuring that the forest ecosystem remains intact and continues to provide vital services such as carbon sequestration and biodiversity preservation.

In addition to forest resources, Indonesia’s Geoparks are also known for their fertile volcanic topsoil, which is particularly suited to organic farming and agro-businesses. The volcanic landscapes of regions like Batur Geopark and Rinjani-Lombok Geopark provide an abundance of nutrients that support a wide variety of crops. This fertile soil is a critical resource for promoting food security and sustainable agriculture, as it can be used to grow high-quality, organic products for both local markets and international exports. Moreover, biodiversity plays a significant role, as these areas are home to unique flora and fauna that are invaluable for eco-tourism and scientific research.

Geoparks are also rich in mineral resources, particularly in regions with volcanic activity. Responsible extraction of minerals, such as geothermal energy and precious metals, can contribute to the local economy while maintaining sustainable practices. Finally, clean, fresh water is another vital resource within many Geoparks, supporting agriculture, local communities, and eco-tourism initiatives. The abundance of these resources, when managed properly, can be harnessed to create a thriving, sustainable Geopark economy.

Notable Industries and Business Sectors in Indonesian Geoparks

The Geopark economy in Indonesia encompasses a broad range of industries, many of which are primed for growth. Ecotourism and sport tourism are among the most visible sectors, as Indonesia’s Geoparks offer some of the most breathtaking landscapes in the world. Areas like the Kebumen Geopark and Rinjani Geopark attract international visitors who are eager to experience nature up close, participate in adventure sports, or learn about conservation efforts. The rise of eco-tourism is not just about attracting tourists; it is about fostering deeper engagement with the environment through educational programs and sustainable practices.

Agribusinesses in Geoparks are also thriving, particularly those focused on sustainable farming and organic food production. Given the fertile volcanic soils, areas within Geoparks are becoming hubs for organic agriculture, including the cultivation of coffee, cacao, and other high-demand crops. Similarly, the handcrafted goods sector, driven by local artisans, is benefiting from the increasing interest in authentic, locally made products. These goods, ranging from textiles to woodwork, form an integral part of the cultural heritage tourism that is a key aspect of Geopark development.

The renewable energy sector is another growth area, with geothermal energy playing a central role. Indonesia has vast geothermal potential, particularly in its volcanic regions. By tapping into this resource, Geoparks can not only reduce their dependence on fossil fuels but also create opportunities for sustainable development. Additionally, the fishing and marine resources sector in coastal Geoparks is vital for local economies, providing livelihoods while encouraging sustainable practices to protect marine ecosystems. As Geoparks develop, industries like hospitality and real estate are also expanding, as demand for eco-lodges, resorts, and sustainable accommodations increases.

Market Dynamics in Indonesian Geopark Economies

The market dynamics of the Indonesian Geoparks economy are shaped by both supply and demand factors. On the demand side, there is growing global interest in sustainable tourism and green industries. As consumers become more environmentally conscious, the demand for eco-friendly products and experiences increases. Ecotourism, for example, is seeing significant growth, especially in regions rich in biodiversity and natural beauty. This demand is further driven by the rise of conscious consumerism and a global push for responsible travel.

On the supply side, the Geopark regions face several challenges. While Indonesia boasts a wealth of natural resources, many Geoparks are located in remote areas with limited access to modern infrastructure. This poses a significant barrier to investment and limits the ability of local communities to benefit from the opportunities available. Additionally, while there is strong interest in renewable energy and sustainable practices, the technology and human capital needed to support these industries are still developing in many areas. Furthermore, the regulatory environment in Indonesia can be complex, which creates challenges for businesses trying to navigate bureaucracy and secure the necessary permits for development.

A Green Investment Model for Driving Sustainable Growth in Geoparks

In order to fully realize the potential of Indonesia’s Geoparks, a comprehensive investment model is required. This model should integrate grants and subsidies, public-private partnerships (PPPs), and private investments to drive development. Grants and subsidies from the government and international organizations can provide the initial capital needed for large-scale infrastructure and environmental projects. These financial incentives can be critical in supporting the development of sustainable tourism infrastructure, renewable energy initiatives, and conservation programs.

Public-private partnerships (PPPs) will be essential for addressing the financing gaps in key sectors like infrastructure, hospitality, and renewable energy. By combining public resources with private expertise and capital, these partnerships can help scale projects that might otherwise face financial constraints. Finally, private investments are crucial to fueling the growth of businesses in sectors such as agriculture, renewable energy, and eco-tourism. The private sector’s role in developing these industries will not only boost economic activity but also ensure that sustainability remains a core focus of Geopark development.

Major Barriers in Attracting Investment and Growth in Geopark Economies

Despite the opportunities, there are several barriers to attracting investment into Indonesia's Geoparks. One of the primary challenges is the regulatory environment, which can be slow-moving and inconsistent. Complex land ownership laws, permits for resource extraction, and environmental protection regulations often create uncertainty for potential investors. Moreover, the perceived risk of investing in areas with active volcanic activity and the potential for natural disasters deters some investors.

Additionally, the lack of attractive financial incentives for investors is a significant hurdle. While Geoparks offer unique opportunities, the returns on investment in the short term may not be as lucrative as in other sectors. The long-term nature of Geopark development, particularly in sustainable industries, requires patience and a stable regulatory framework, which is sometimes lacking in certain regions.

What to Look for in the Future of Indonesian Geoparks

Looking ahead, Indonesia’s Geopark economy shows considerable promise for growth, expansion, and consolidation. As demand for sustainable tourism and eco-friendly products increases, regions rich in natural and cultural assets will become more attractive to investors and tourists alike. With the right mix of infrastructure, regulation, and innovation, Geoparks have the potential to expand beyond their current footprint and attract new investment into industries like renewable energy, sustainable agriculture, and eco-tourism.

Consolidation in the Geopark sector will also be key to ensuring its long-term success. By fostering collaboration between local governments, businesses, and international stakeholders, Indonesia can create a more unified approach to managing Geopark resources and ensuring that development remains in line with sustainability goals. Moreover, as the global emphasis on climate change and sustainability continues to grow, Geoparks have the opportunity to play a central role in Indonesia’s efforts to position itself as a leader in environmental conservation and green industries.

Legacy Projects

Several legacy projects are already underway in Indonesia’s major Geoparks, with significant development prospects. Projects in areas such as Batur, Ijen, and Rinjani are demonstrating the potential for growth in eco-tourism, sustainable agriculture, and renewable energy. These legacy projects serve as models for future Geopark developments and will likely influence policies and practices in other regions.

For instance, Ijen has become a major tourist destination, attracting visitors interested in volcanic landscapes and local culture. Similarly, Rinjani is focused on leveraging its geothermal resources for renewable energy while promoting sustainable agriculture. These projects not only boost the local economy but also contribute to Indonesia’s broader goals of sustainable development and environmental protection.

Early and Late-Stage Projects held under GIAC

In 2025, several pivotal initiatives will be spearheaded under the Geoparks Investment Advisory Council (GIAC). These projects include the launch of Geopark Connect, a digital platform designed to link local businesses, tourists, and investors. Additionally, the Global Geopark Expo will serve as a key trade show to showcase the latest developments in Geopark-related industries, offering a space for collaboration and knowledge-sharing. The House of Geoparks initiative will establish regional and local offices to support the growth of local businesses and foster community engagement in Geopark projects.

Furthermore, the Net Zero Geoparks Hub will focus on carbon credit programs and conservation efforts aimed at making Geoparks carbon-neutral. These initiatives represent a strategic effort to bring together all stakeholders and provide the necessary resources to drive sustainable economic growth across the Geopark regions.

A photo of the Rinjani-Lombok UNESCO Global Geopark

Recommendations and Key Takeaways

In the future, the next three decades will be pivotal for Indonesia’s Geoparks. Stakeholders—including the government, private sector, local communities, and international organizations—must work collaboratively to create a unified vision for Geopark development. Key recommendations include streamlining regulatory processes to attract investment, improving infrastructure to support sustainable tourism and businesses, and investing in education and training to build local human capital.

The government should focus on creating a clear regulatory framework and providing financial incentives for sustainable projects. The private sector must invest in eco-friendly businesses, innovation, and technologies that align with the principles of the Geopark economy. Communities should actively participate in capacity-building programs to enhance their involvement in the development of Geopark regions, particularly in sectors like eco-tourism and sustainable agriculture.

Indonesia’s Geopark economy offers significant opportunities for sustainable development. With a focus on conservation, eco-tourism, and responsible business practices, Geoparks can become major contributors to local and national economic growth. However, overcoming challenges such as regulatory complexities, infrastructure development, and investment barriers is crucial for unlocking the full potential of these areas. As Indonesia moves toward 2025, strategic investments, collaboration between stakeholders, and long-term planning will be essential in ensuring that Geoparks fulfill their promise of a sustainable and prosperous future.

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Diemas Sukma Hawkins

Diemas Sukma Hawkins is a Senior Associate at the Geoparks Investment Advisory Council (GIAC), where he leads the Business Advisory Capabilities for Climate Change and Sustainability. He also supports GIAC’s initiatives in Organizational Strategy, Philanthropy, and Social Impact, and serves as Principal Industry Advisor for Agribusiness and Food, Commodities and Trade, and Spa and Wellness sectors. Previously, Diemas contributed to Indonesia’s national development as an Energy Policy Analyst at the Ministry of National Development Planning (Bappenas) and the Coordinating Ministry for Maritime Affairs and Investment. He also held the role of Secretary General of the Indonesian Geoparks Youth Forum (IGYF), a youth-led organization focused on sustainable development in geopark communities. Diemas has also served as an Investment Fellow at Stella Capital, further broadening his expertise in strategic advisory and investment.