Skip to content
New infrastructure in Komodo National Park is being built directly in the habitats of the Komodo Dragon, an endangered giant lizard species found nowhere else in the world.

Mega-Tourism Development in Komodo National Park

Komodo National Park, West Manggarai District of East Nusa Tenggara Province

This project violates the following Banks and Biodiversity No Go Areas:

The Komodo National Park (KNP) is located within Indonesia’s Lesser Sunda Islands in the West Manggarai District of East Nusa Tenggara Province. The park is comprised of 29 islands, including the major volcanic islands of Rinca, Komodo, and Padar. The area was declared a Biosphere Reserve in 1977 and a National Park in 1980 by the Indonesian government as well as a World Heritage Site in 1991 by UNESCO. The Park has since been managed primarily by the Indonesian government’s Ministry of Environment and Forestry.

The Park is considered to be a “global conservation priority area”, as it hosts exceptional marine and terrestrial ecosystems. The area is most famous for its endemic and now endangered population of giant lizards, Varanus komodoensis, otherwise known as Komodo Dragon. With an estimated remaining population of 3,000, the Komodo dragon is a main draw to the area as well as a main concern for environmentalists. The area is also home to numerous other terrestrial species, such as the orange-footed scrub fowl, the Komodo rat (endangered), and the Timor deer (vulnerable), as well as marine life like sea turtles, whales, dolphins and dugongs and rich coral reefs.

Indonesia’s “New Era of Tourism”

The Park has been under increasing threat due to the Indonesian government’s interest in further developing the area as a mega tourist destination. The Indonesian Minister of Tourism and Creative Economy, Sandiaga Uno, stated that the country is “embarking into a new era of tourism”, and as part of this, the government announced in 2016 its “10 New Balis” initiative, which aimed to welcome 20 million tourists in 2019. The government included Labuan Bajo, a port town at the entrance of the Park, as one of the “New Bali” destinations.

The increasing presence of private investment is expected to produce numerous negative environmental and social impacts. During the 44th World Heritage Committee session in 2021, UNESCO warned of the grave threats that increasing levels of tourism brings to the area. Since 2015, the number of foreign tourists visiting the park has doubled and as a result there has been increases in pollution, water usage, human encroachment on critical habitats, and overall degradation to the area’s natural beauty.

While investing in the tourism sector can be a viable pathway for economic development, this must be done in a sustainable way in which potentially negative impacts of tourism plans are properly assessed. However, the Indonesian government’s plans in Komodo National Park may result in similar environmental problems experienced in Bali due to over-tourism. For years, the Ministry of Environment and Forestry has been steadily laying the ground for private investment in the Komodo National Park area, including changing the conservation status of parts of KNP from protection zones to utilization zones. These regulatory changes allow for weaker protection and looser management over once protected zones in order to allow public and private investment in tourism development, including the construction of luxury resorts, to take place in and potentially damage these natural areas. According to Walhi, the government has granted tourism concessions to seven companies in the area, three of which have been already issued permits to allow for development to begin.

Tourism concessions in Komodo National Park. Photo by Sunspirit for Justice and Peace

One of the most prominent sites for tourism construction is in Loh Buaya, a resort for Komodo observations on Rinca Island, which is the island with the second largest population of Komodo dragons. The project’s construction, which has involved building a ranger post, elevated decks, an information center, and other infrastructure is financed by the Indonesian government. PT Sagara Komodo Lestari’s concession to develop resorts and other facilities is located near Loh Buaya, but the company has yet to start development.

Other private investments in the park are from PT Komodo Wildlife Ecotourism, which was issued a permit in 2014 to build exclusive resorts on Padar Island as well as Komodo Island. However, the company has been under great scrutiny from the public and due to this, has yet to start construction on either island. Additionally, PT Synergindo Niagatama was issued permits for underwater tourism in April 24, 2020 on Tatawa Island and has not started development. While the financing of these other projects has not been decided or publicly shared, civil society is calling on banks to withhold financing to any of these plans, regardless of whether that are initiated by the government or private companies.

Harm to terrestrial and marine life

The future of the Komodo Dragon is of particular concern, considering its status as an endangered and endemic species, according to the International Union for Conservation of Nature (IUCN) Red List. The giant lizards inhabit only the islands of Komodo, Rinca, Gili Motang, Gili Dasami, and Flores, two of which (Komodo and Rinca) are the locations of tourism concessions. Additionally, the Komodo island hosts the port for tourist ships. The lizards are jeopardized not only by reductions in the islands’ wild areas, such as the clearing of trees and land to build walkways in Loh Buaya, but also due to park rangers’ control over their diet, which has reportedly inhibited the lizard’s hunting instincts.Though the human feeding of lizards is no longer carried out on large scale, local sources report that it still occurs. Even worse, occasional lizard smuggling has been reported. These impacts will only escalate with further touristic development.

The Park’s marine area, including its coral reefs, is one of the most diverse in the Indo-Pacific, and is also at great risk due to damages and pollution from diving and private boats. The marine  zone covers 60% of the Park, where 10 species of dolphins, five species of sea turtles, over 1,000 species of reef fish have been recorded.  

Impacts on local communities

There are many Indigenous populations that live within the Komodo National Park, including the Ata Modo, Ata Bajo, Dou Mbojo communities. In addition, the Ata Modo community are the descendants of the original people of Komodo and continue to live in the area, relying largely on maritime resources for their livelihoods. Nonetheless, many local communities fear that their work will be replaced by luxury tourism and that new premium businesses will displace their existing ones. A local Indonesian non-governmental organization, Sunspirit for Justice and Peace, has expressed concern that even short-term construction jobs in the Park will not be available to them. According to Shana Fatina, director of the tourism authority board for Labuan Bajo, most of the $300 million going towards tourism will not reach locals.

The Indonesian government also fails to recognize the role of the Komodo dragon in communities’ culture as well as communities’ role in the dragon’s survival. The Ata Modo community, for instance, regards the Komodo Dragon as its brother and deserving of protection. In parallel, local communities have not been adequately informed or consulted about investments in the region despite the grave injuries likely to be imposed upon them, including even potential displacement.

Public scrutiny and UNESCO’s warning

The Indonesian Government’s tourism plans have triggered great backlash from local organizations, local protests, and warnings from UNESCO. During the 44th World Heritage Committee session in July 2021, UNESCO raised concerns for the tourism projects on Rinca Island, stating that Indonesian government’s Environmental Impact Assessment (EIA) did not adequately assess how potential impacts would degrade the area’s Outstanding Universal Value. Further, the government had not informed UNESCO of the project, despite this being a requirement of a World Heritage Committee. UNESCO urged the government to halt projects until it submits a revised EIA for the IUCN to review.

The project has received media attention recently, during the Reactive Monitoring Mission that took place in Komodo National Park on March 3-6, 2022. While the government casts a positive light on the visit, the reality is that local people were not informed of UNESCO’s arrival and have not been consulted at any stage of the project. Staff from UNESCO and IUCN conducted a field survey, visiting areas of the park including planned resort sites. The Indonesian government published a press release on March 2, 2022, perhaps in an effort to cover up “real conditions” in the Komodo National Park. To date, IUCN is assessing the field review and will produce recommendations for the Government of Indonesia about whether and how to proceed with its projects. In the meantime, many people have joined the #SaveKomodo movement and local organizations like Walhi and Sunspirit have requested UNESCO and IUCN to hold the Indonesian government accountable for the damage in the Loh Buaya Resort, along with those expected to occur at other sites, and reject the government’s facilitation of unchecked private investments in the Komodo National Park. Organizations are also calling on banks to withhold any financing that may enable these projects to advance.

More Case Studies

Banks and financial institutions need to be held accountable for their role in driving biodiversity loss, fragmenting critical ecosystems, negatively impacting indigenous and traditional communities, and harming wilderness areas. These campaigns from our partners exemplify why we need banks to adopt our proposed No Go policy.