Indonesia’s Integrated Tourism Improving Livelihoods for Thousands in Lake Toba and Lombok

Imagine trekking through savannah fields and sandy terrain to the peak of the second-highest volcano in Indonesia, Mount Rinjani in Lombok. Or picture waking up to the serene beauty of Lake Toba, North Sumatra, where the sun glimmers over the water and a cup of local coffee sets the tone for the day.

These timeless experiences, shaped by centuries-old landscapes and traditions, are now complemented by sustainable tourism efforts that enhance local communities, preserve the environment, and share these treasures with the world. This vision is being realized through the Indonesia Tourism Development Project (ITDP), an initiative of the Government of Indonesia, supported by the World Bank, which focuses on sustainable tourism development that benefits both people and the environment.

These efforts are already making a significant impact in Lake Toba and Lombok. ITDP’s initiatives are improving infrastructure, expanding access to resources, and empowering local entrepreneurs. Through training and capacity-building, communities are ensuring that tourism growth benefits both people and the environment while preserving cultural and natural heritage.

At the same time, ITDP’s reach extends beyond these two regions, driving sustainable tourism nationwide. By the end of 2024, ITDP supported six destinations in achieving key milestones: improving water access for 570,000 people, creating 542,000 m² of non-motorized space, and enhancing sanitation for 470,000 people. Over 20,000 businesses expanded their online presence; over 84,000 tourism professionals were certified.

The project also attracted over $870 million in private investment, trained 18,000 participants from 155 tourism villages, and supported 65 tourism villages through mentoring programs that helped them realize their development plans and generate income and livelihoods. Additionally, ITDP is estimated to have driven the creation of job opportunities for more than 975,000 people in these six destinations (an increase of approximately 27 percent in the accommodation, food, and beverage sector in the related areas), with the overall average wage increasing by more than 15 percent (Ministry of National Develeopment Planning/Bappenas, 2024).

Lake Toba and Lombok: Two Regions, One Vision for Sustainable Tourism

_{A scenic view of Lake Toba, where natural beauty and Batak culture intertwine. Balancing tourism with environmental and cultural preservation is crucial for long-term sustainability. Photo credit: Ministry of Tourism, Republic of Indonesia.}

Both Lake Toba and Lombok offer unique landscapes and cultural traditions but face challenges such as poor infrastructure, environmental degradation, and the need for tourism that benefits local communities without harming their resources.

As part of ITDP, the Government of Indonesia developed the Integrated Tourism Master Plan (ITMP) to serve as a blueprint for sustainable tourism development. While Lombok’s ITMP was completed and enacted earlier, ITMPs for other destinations were finalized during the project. Their implementation continues as part of broader efforts to strengthen sustainable tourism development.

The ITMPs create a balanced approach to tourism  that respects the environment and local culture while empowering communities to lead their own development. By incorporating infrastructure development with environmental conservation and cultural preservation, the ITMPs guide key tourism projects in regions like Gili-Senggigi, South Beach, Mataram, and Rinjani. This integrated approach ensures that tourism growth aligns with long-term sustainability goals for local communities and the environment.

Key improvements include road upgrades, such as the Pemenang-Bayan-Sembalun road and water supply systems in Senaru, Sembalun, and Mandalika. These improvements enhance infrastructure and help preserve the natural resources that draw visitors to the region. By December 2024, ITDP projection show that these improvements will benefit 1.6 million people in Lombok, enhancing the sustainable development efforts across the island.

Lake Toba: Revitalizing Culture and Nature

Lake Toba holds significant tourism potential, with over 197,000 travelers to North Sumatra in 2023, more than double the previous year. The project focuses on upgrading infrastructure such as roads and water systems, revitalizing attractions like the Pangururan Waterfront on Samosir Island, and preserving the rich Batak culture through geotourism sites and conserving traditional villages.

The ITMP for Lake Toba has been central to these efforts, as it provides a comprehensive framework for the region’s sustainable tourism development. Local communities are equipped with the skills needed to manage tourism in a way that preserves their heritage while generating income, thanks to the integration of the ITMP's strategies with practical projects.

_{A local artisan weaves Ulos in Samosir, preserving Batak heritage while utilizing ITDP's digital marketing training to share her craft with a broader audience. Photo credit: Ministry of Tourism, Republic of Indonesia}

Samosir Island exemplifies these efforts, with improvements like the Tana Ponggol Bridge and the revitalized Pangururan Waterfront, which has become a hub for watersports and cultural events. Attractions such as Geosite Tele View Deck and Pusuk Buhit Volcanic Cone enhance visitors' experience, while Batak villages like Kampung Ulos Hutaraja promote traditional crafts like Ulos weaving.

Indah, a local entrepreneur from Sibaganding Tourism Village, exemplifies the impact of ITDP’s training in hospitality and digital marketing. “I worked in Medan before returning to my village. As a barista, I’ve been helping start a coffee stall here. We’ve received training and support,” she says. Indah’s story underscores how tourism can empower women, create jobs, and foster economic independence while preserving culture.

_{Sibaganding entrepreneur, Indah, enthusiastically shares how  ITDP’s training helped grow her coffee business. Her journey highlights how tourism supports local livelihoods and culture. Photo credit: The World Bank team.}

Beyond infrastructure, the project has trained over 4,000 SMEs in online marketing and engaged communities through Tourism Awareness 5.0 campaigns, which foster a shared understanding of tourism’s value for local development.

Lombok: From Resilience to Opportunity

Lombok is known for its diverse tourism potential, from mountains and beaches to its rich cultural heritage. Local communities play a vital role in organizing events and promoting attractions through word-of-mouth and social media.

After the 2018 earthquake, ITDP helped Lombok recover by focusing on disaster resilience and infrastructure development. The ITMP for Lombok ensures that development efforts prioritize environmental preservation and community empowerment, fostering long-term sustainability.

_{The Sembalun Water Management System are key to improving Lombok’s infrastructure and sustainability. Photo: The World Bank team}

The project also emphasizes the proper use and maintenance of infrastructure. In Sembalun, for instance, ITDP supports the construction of the Sembalun Water Management System (WMS) to address clean water issues. To ensure its sustainability, the system is managed upon operation by Pamdesma Selojar Sembalun, a community-based organization focused on sustainable water resource management in the protected area of Mount Rinjani. “We are ready to manage the water supply network according to our business plan,” says Mr. Rusdin, the organization’s chair. “We hope this resolves clean water issues and supports tourism."
 

Shared Lessons: Community Involvement and Environmental Sustainability

What unites Lake Toba and Lombok is not just the beauty of their landscapes but the lessons they share in community involvement and environmental sustainability. In both regions, local communities have led the way in shaping tourism development. Whether establishing local businesses or managing natural resources, these communities are empowered to preserve what makes their regions unique while benefiting from tourism growth.

In Lombok, the Sandubaya waste management facility (TPST), supported by ITDP, turns waste into valuable resources such as paving blocks. The facility also explores maggots to address organic waste, creating a sustainable solution that benefits the environment and the local economy. “Household waste is processed into maggot feed, which has high economic value despite being unfamiliar to most people,” says Yusril Arwan, the facility’s manager.

_{The Sandubaya Waste Management Facility in Mataram, Lombok, is critical in ensuring proper waste management. It supports sustainable tourism by protecting the environment and local communities. Photo credit: The World Bank}

These efforts align with the creation of the six Integrated Tourism Master Plans (ITMPs) for the destinations where the project is implemented, serving as regional blueprints that integrate local priorities and sustainable practices, ensuring balanced growth alongside environmental and cultural preservation.

A Vision for the Future: Scaling Sustainability Across Indonesia

Lake Toba and Lombok exemplify Indonesia’s commitment to sustainable tourism. The government is focused on balancing economic growth, environmental preservation, and cultural heritage to ensure long-term prosperity while safeguarding the country’s traditions and natural beauty.

With these achievements as a foundation, ITDP is set to expand its efforts, ensuring sustainability remains at the heart of Indonesia’s tourism growth. The project will continue scaling its impact by strengthening local capacities and ensuring the ITMP framework drives inclusive, resilient, and environmentally responsible tourism development.

A key focus will be increasing private sector involvement to foster innovation and investment in sustainable tourism, ensuring benefits reach not only Indonesia’s key tourist destinations but also the local communities that sustain them. The ITMPs will guide governments, businesses, and local stakeholders toward sustainable growth, focusing on collaborative governance and responsible tourism management.

_{The pristine blue waters of Gili in Lombok, a prime example of tourism managed with sustainability in mind. Guided by the ITMP, this model ensures that tourism benefits the local community while preserving the island’s natural beauty. Photo credit: The World Bank.}

Conclusion: One Journey, Many Voices

The stories of Lake Toba and Lombok are part of Indonesia’s broader effort to create sustainable tourism. Whether through local entrepreneurship or water management, the people in these regions are shaping their communities' futures. As Indah and Rusdin have shown, this journey is more than tourism—it’s about creating lasting, meaningful change for generations to come.