Situbondo Opens Rp40 Billion Investment Opportunity for Pasir Putih Tourism
The Situbondo Regency Government is offering a minimum investment opportunity of Rp40 billion to develop the Pasir Putih Marine Tourism area through a Utilisation Cooperation scheme, as announced on Tuesday, 11 August 2026. The regional tourism development initiative is designed for a 30-year period. In the first five years, investors are required to commit a minimum capital of Rp40 billion, while the total asset value of the area, including land and buildings, is estimated at Rp143.5 billion.
Situbondo Regent Yusuf Rio Wahyu Prayogo explained that private sector involvement is needed to optimise the quality of destination management without altering the area’s well-established identity. ‘The brand remains Pasir Putih. The name Pasir Putih is legendary and does not need to be changed. What we are doing is giving it a new look, new quality, and a new experience for tourists through more professional management,’ said Regent Yusuf Rio Wahyu Prayogo.
The Situbondo Regency Government projects that Pasir Putih Beach will be connected within the East Java to Bali tourism ecosystem, including routes through Bromo, Besuki, Argopuro, Ijen, and Baluran. This connectivity will be supported by toll road infrastructure, Jangkar Port, KHR As’ad Syamsul Arifin Airport, and plans to reactivate the railway line. ‘We do not see Pasir Putih as a standalone destination. Pasir Putih will become part of the tourism ecosystem and regional connectivity,’ Yusuf Rio Wahyu Prayogo stated.
Head of the Situbondo Tourism, Youth and Sports Agency Edy Wiyono revealed that the total development area reaches 18.4 hectares, of which 15.4 hectares is designated as a tourism zone. Available assets include Hotel Sidomuncul 1, Hotel Sidomuncul 2, Papin In, and Wisda Rengganis. The Utilisation Cooperation scheme stipulates a fixed contribution obligation to the regional government of at least Rp1.5 billion per year, in addition to a revenue-sharing arrangement with a 51 percent portion for the regency government and 49 percent for the investor. ‘Investors gain space to develop and profit from the businesses built, while the regional government receives a fixed contribution, profit sharing, and broader economic benefits for the community,’ said Edy Wiyono.
Head of the Situbondo Investment Acceleration Special Team Riza Rachman noted that approximately seven to ten prospective investors from the hospitality and amusement park sectors have already initiated preliminary communications. The opportunity remains open to state-owned enterprises, regionally-owned enterprises, and national private companies. ‘We are not just looking for investors who can inject capital, but partners with a long-term vision to build the destination,’ said Riza Rachman. The development of the Pasir Putih area is targeted to increase Regional Original Revenue, extend tourist length of stay, and stimulate the MSME, transportation, and culinary sectors in Situbondo.