Bali Property News
The Indonesian press has been awash with news of a promised change in property laws that, if approved, would allow foreign nationals to lease land for 75 years. The response to the proposed regulation has earned enthusiastic praise from the national property sector. Conceivably, the new rules would end the current procedure of placing a property in the name of a nominee Indonesian national. Meanwhile, members of the prestigious Real Estate Indonesia (REI) optimistically project that liberalized property ownership for foreigners will open a flood gate of demand for property purchases by foreigners, primarily in Jakarta and Bali.
One Bali-based property developer - who runs investment seminars as well as advertorials on Bali radio stations and print media, has even begun running advertisements heralding coming increases of 500 to 1,000% in both demand and prices for Bali real estate if the proposed new law is approved.
Unwittingly sounding what may be his darkest warning, the same developer even proudly quotes himself in one of his advertorials saying, "Bali real estate would be like Hawaii 30 years ago."
The Indonesian tourism market is still widely open but in order to made the promotion more effective and efficient, it must be narrowed down to 15 countries in three regions. The countries are in Shout East Asia, Europe and Middle East.
The promotion strategy was one of the main topics discussed in the meeting held by Bali Hotels Association in Holiday Inn Bali hotel. The meeting which was joined by hotels representative throughout Bali and international hotel networks themed the projection for market development in 2010.
I Gde Pitana, the director of Foreign Promotion, and Syamsul Lussa, the director of Market Development in Indonesian Cultural and Tourism Department and also the coordinator of Bali Tourism Board, Ngurah Wijaya.
The countries which will become the focus of Indonesian marketing are Singapore, Malaysia, Japan, England, Germany, Holland, France, Russia, South Korea, Australia, China, India, Philippine, Saudi Arabia, and Republic Arab Emirate.
There was an interesting phenomenon after the economics crisis happened throughout the world where the number of tourists from Singapore, Malaysia, France Russia, and Australia was increasing. Indonesian government targeted 7,097,630 tourists in 2010.
In 2011 the target become 7,324,883 and it increase become 7,552,135 (2012), 7,779,388 (2013) and 8,006,641 in 2014. Singapore which is well known for its efficiency, is one of the country send most tourists to Indonesia, followed by Japan and Malaysia.
In 2010, the number of tourists from Singapore is predicted will be around 14,984,600 people. Japan will be around that number also while Malaysia will be around 6 million tourists.
Europe with Germany, Great Britain, and the Netherlands are predicted to become the highest tourists supplier for Indonesia. In 2010, the number of tourists from those countries will be around 82,315,300 people from Germany, 69,683,200 (England) and 27.129.200 (France).
The number of tourists from Russia was also increasing gradually. According to the data from United Nation, everyday in 2009, the profit gained from tourism in Asia-Pacific region was $2.6 billion.
While last year, the total profit throughout the world was $944 billion. Indonesia was very lucky because it grow 13% compared to Asia Pacific region which was only grow 1.2% this year.
Syamsul Lussa said that one of the thing that support Indonesian tourism is the promotion but the fund is always determined by the government. “Our approach is by using the less budget but producing high income. Malaysia was using $100 million and producing $14 billion but Indonesia was only using $15 million to produce $5.35 billion. So we are more efficient than Malaysia,” he added.
In order to increase the efficiency, the tourism businessmen in Indonesia must alter the paradigm and ways of business. Pitana said “one of the most important thing is we must focus on the market. Many challenges ahead and many countries in Asia are started to arrange their tourism sector.”
News by International Bali News.
Property and investment
The House of Representatives finally passed the proposed investment bill in to law last month. It has not been signed yet by the President but this is expected soon. Aimed at replacing two separate 30-year old laws for foreign and domestic investors, Law No. 1/1967 and Law No. 6/1998, the 2007 investment Law signals a much better investment climate than its predecessors. This is reflected in the following features:
More certainty regarding land rights holding. Cultivation rights (HGU) are extended up 95 years from previously 35 years. Building rights (HGB) may be obtained for up to 80 years from previously 30 years. Land use (Hak Pakai) rights are also extended from previously 25 years to 75 years.
Simplified business related licenses. Subject to further detailed regulations, applications for business related licenses will be served by the Investment Board of Investment (BKPM) under a one-stop service system. BKPM will act as a coordinator among government agencies, departments and regional administrations. Within the government, BKPM's position will also be elevated from a part of the trade department to a non-departmental bureau responsible directly to the president.
Domestic and foreign investors are treated on an equal footing. Both groups will generally have the same access to any business areas despite the government requirement to reserve certain areas for small and medium enterprises and cooperatives. The government will a "negative list" in due course. This will contain some prohibited areas for investment or only open under certain conditions. However, if a business area is not on the list, investors can enter the area without restriction. At the moment, the negative list has not been issued yet.
Longer time for temporary stay permits and shorter time to get permanent ones. A temporary stay permit (KITAS) may be granted for up to 2 years, twice as long as the current standard. The new law allows a KITAS to be converted into a permanent stay permit (KITAP) after a two-consecutive year of stay in Indonesia, much shorter than the current standard of five years.
Removal of divestment requirement to local partner. Unlike its predecessor, the new law is silent about divestment requirement.
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Indonesian tourism climbs 13.67%
by Asia Pulse,
January 02, 2008
The number of foreign tourists visiting Indonesia in the first 11 months of 2007 rose 13.67 per cent to 4,109,831, from 3,615,739 in the same period last year, the Central Bureau of Statistics (BPS) said.
The increase reflected encouraging developments, particularly for those engaged in the tourism industry, BPS Deputy Chief for Distribution and Service Statistics Ali Rosidi told a press conference here Wednesday.
In November 2007 alone, a total of 398,983 foreign tourists visited Indonesia via the country’s 15 gateways, up 8.57 per cent from the same period last year, he said. The number of tourist arrivals in November 2007 rose 13.56 per cent from October 2007, when it was 351,351, he said.
Compared to November 2006, 11 of the 15 gateways saw an increase in the number of tourist arrivals in November 2007 with Adi Sumarmo Airport in Solo, Central Java, recording a 62.41 per cent rise, Hasanuddin Airport in Makassar, South Sulawesi, (60.25 per cent) and Juanda Airport in Surabaya, East Java, (47.97 per cent), he said.
Meanwhile, the other four gateways, namely Simpang Tiga, Mataram, Ngurah Rai and Manado saw a decline in the number of tourist arrivals, he said. The number of tourist arrivals through the Hasanuddin Airport in November 2007 represented a 335.23 per cent increase compared to the previous month.
But if compared to November 2006, the number of tourist arrivals through Ngurah Rai Airport rose 24.40 per cent in November 2007, he said. The occupany rates of star-rated hotels in the country’s 10 tourist destinations in October 2007 reached an average of 47.46 per cent, up 1.09 points from a month earlier.
West Java aims for 375,000 tourists
by Asia Pulse
January 02, 2008
The Culture and Tourism provincial office of West Java has set target of 375,000 foreign tourist arrivals in year 2008 to the province through the "Welcome to West Java" program.
Idjudin Budhyana, head of West Javas Culture and Tourism office expressed his optimism here on Saturday that the province could reach the target owing to the intensification program of the regional tourism potential area. Regions which include in the tourism potential area to lure the foreign visitors namely Sukabumi, Ciamis, Bandung Raya, Bogor, Kuningan and Tasikmalaya, he said after opening the Braga 2007 Festival in Bandung city.
In 2007, West Java provincial tourist office targeted some 500,000 foreign arrivals to the province, which borders Jakarta. He said West Java has allocated some Rp7.5 billion (US$792,000) for culture and tourism promotion.
Indonesia to spend $16m on tourism
by Asia Pulse,
December 10, 2007
The Indonesian government has allocated Rp150 billion (US$16.2 million) for tourism promotion in 2008, compared to promotion funds in 2007 which stood at Rp100 billion.
"We proposed Rp200 billion for promotion funds for tourism, but probably we will get only Rp150 billion," Tourism and Culture Minister Jero Watjik said here Monday on the sideline of a seminar on the impact of climate change on Indonesian tourism. He said the amount of Indonesia’s tourism promotion funds was far below those of other countries such as Malaysia which provided some Rp800 billion for the purpose.
But despite the relatively small amount of promotion funds, the ministry had set itself the target of attracting at least seven million foreign tourists a year. Some strategies have been made involving private sector such as hotel operators, to improve promotion to potential markets.
Hotels and other tourism operators are expected to provide brochures, VCD and others to promote Indonesian tourism abroad, the minister said. Foreign tourist visits in Indonesia as of October have reached four million, while the target during 2007 was set at six million. Watjik expressed optimism that the target could be reached with the improved security situation in the country.
Record Bali arrivals
October 26, 2007
Daily tourist arrivals in Bali over the past few months hit a record high of 5,400 to 6,000 since the Bali bombings of Oct 12, 2002 and Oct 1, 2005, Governor Dewa Beratha said.
In the first eight months of 2007 an estimated 1.05 million foreign tourists visited Bali, raising hopes that the tourist arrival target of 1.5 million for this year will be achieved, he said when receiving 13 members of the House of Representatives Commission IV on agriculture, plantations,
forestry, fisheries and food here Thursday.
During the Idul Fitri holidays, the occupancy rate of most star-rated hotels in Bali was quite high, although most of the hotel guests were domestic tourists, he said. This indicated that the Bali tourism industry had begun to recover, he said.
The governor asked all sides to remain watchful toward possible disturbances that might have an adverse impact on the tourism industry. Bali again had been declared the worlds best tourist resort by the US leading tourism magazine Travel+Leisure, he said. Bali won the award from the magazine as the worlds best tourist resort for the eighth time on August 14, 2007, coinciding with the 49th anniversary of Balis provincial administration, he said.
The award was received by the Indonesian consul general based in New York recently, he said.
The other nine tourist islands declared the worlds best tourist resorts were Maui, Kauaui, Galapagos, Santorini, Vancouver, Dalmation Island, Phuket, Hawai and Great Barrier
Investing in Bali's resort property
Wednesday, 20 June 2007
Although still someway behind Phuket in volume of sales and the number of developments, the Indonesian island is catching up fast, helped along by a newly proactive government, both at local and national level, which is keen to develop the island's appeal as a real estate investment destination for foreign buyers.
"Indonesia has a legal environment which makes it quite easy for foreigners to buy," says Dominique Gallmann, Director of Exotiq Real Estate. "They have a government which has consistently worked on improving the investment climate here and has improved the laws which enable foreigners to buy here. Just recently a new investment law was passed, by which foreigners can now hold government titles on property for 70 years with a possibility to extend."
"We've got a new Indonesian government that realises it has to catch up with the rest of Asia," says Matthew Georgeson, Sales Manager at Elite Havens. "The next step is for the Bank of Indonesia to accept that the extended tenures are a medium which banks can lend on. We're starting to get finance packages out of Jakarta now. The first step is for expatriates with a working visa and hopefully, if that goes well, they'll roll it out to the general public in due course."
Indonesia does not currently have a specific condominium law, which has restricted development on Bali to mostly villas. Although developments are becoming increasingly common, many buyers still opt to buy a plot of land and build an individual villa on it.
"The typical foreign investor is going to buy 20-25 are (are = 100 sqm) and build their own villa," Gallmann says. Land prices vary considerably depending on location but start at less than US$5,000 per are for plots in the interior, to 10 times that for sea view plots in the developed south of the island.
"In northern Bali you would get decent beachfront for US$2000 an are, so US$100,000 would buy you a beautiful beachfront property. In the south, there's nothing for that price. You're looking at US$500,000 upwards. A four-bedroom villa, 400-450sqm, would cost around US$500psm to build."
Courtesy: Property Report
Ubud next in Bali villa crackdown
The recent ‘register or face shutdown’ tactics in Badung Regency, Bali’s densest area of tourism-related development, encouraged the registration of over 700 unlicensed villa rental properties in September. Now, the pro-licensing drive has spread to neighbouring Gianyar Regency, which includes within its boundaries Ubud, Bali’s hill station and self-styled cultural capital.
Encouraged by the US$28 million per annum in lost tax revenues reported by Badung authorities, Gianyar government officials claim 350 hotels and villas are unlicensed, not to mention 192 restaurants, 27 bars and 29 other tourist attractions. And in case any villa or business owner misses the point, Head of Gianyar Civil Police, Oka Digjaya, told local newsmen that officials were immediately going to inspect the said properties and sites. – Adrian Batten
Too much noise in ’The Yak’
Seminyak is Bali’s five-star playground, set in fast-dwindling ricefields for hard-partying up-market locals and visitors alike. It’s an eclectic and stylish tapestry of restaurants, cafes, bars, villas, hotels and cutting-edge design and fashion outlets. Known locally as ‘The Yak’, it’s where the action is. It even has a glossy magazine named after the AbFab Bali cavortings.
Much of the fun is concentrated on two roads, Jalan Oberoi and Jalan Petitenget. As with any unregulated hedonistic Eden, there’s a fundamental contradiction between those who want to kick back and relax, and those who want to party. Until recently the two parties seemed to rub along together pretty well. No more, it seems.
With the advent of a new Jakarta-managed nightclub, local residents have complained about excessive noise and the authorities have taken note. Paradise does have regulations, after all. Unless the three offenders named reduce the noise and obtain music permits, they face closure. The three establishments are the long-established restaurant, The Living Room, popular cafe and bar Hu’u, and the recently opened nightspot Day Dream.
Closures are unlikely. All three establishments have agreed to keep noise levels within acceptable levels and obtain the necessary music permit, local press reports say. For their part, local authorities recognise the contribution such establishments make to the tourism industry.
What appears to be going on here is some unofficial zoning Bali style, and perhaps some marking of turf. If anyone doubts the efficacy, if informal nature, of Bali zoning, interested parties need only recall the fate of Sanur’s one and only disco in the early 1990s and the ‘relocation’ of Kuta stall holders and beach watch salesmen at the end of that same decade.
There’s a big difference between ‘dining’ music and disco music, and it pays to know how to walk the line. On-island investors sort of know that. If all-night disco thump is not for The Yak, perhaps disco owners should stick to the kids and Kuta. – Adrian Batten
Raffles Amartha set for Bali’s Bukit
by Adrian Batten
Raffles Hotels and Resorts announced it is to manage a new luxury resort in Bali’s Bukit Peninsula called Raffles Amartha, which is expected to open in 2010. Raffles is teaming up with owner Asia Pasifik Properti, the property and hotel arm of Rekso Group, the Indonesian tea and retail conglomerate.
The new project will comprise some 90 luxurious villas, featuring 25 cliff-top Raffles Residences for sale to private owners. Spread over 11 hectares, the property is to be built in the style of a classical Javanese-Hindu water garden and palace. When completed, the resort will have several restaurants and a spa, with a spectacular cliff-top wedding pavilion.
The new property will adjoin the soon-to-be completed 18-hole golf course designed by Ronald Fream and is part of the once-stalled and still-controversial Pecatu Indah development. With members expected to pay up to US$17,000 to join Bali’s latest golf club, the Bali Post newspaper reported a number of high-profile charter members of the club.
In addition to Raffles Amartha and the new golf course by Intra Golflink Resorts, Westin will be constructing a five-star hotel with Luminary Wira Bhakti while Panorama Development Utama is developing exclusive villas and a hotel.
The cliff-top property overlooks the famed surfers’ beach, Dreamland. Klapa New Kuta Beach will develop beachside entertainment centres, while Cupumanik Griya Permai will construct residential areas.
Construction of the 400-hectare Pecatu Indah project began in 1998 and was halted shortly after, due to the political and financial disruptions of the period. While earlier controversies relating to the original acquisition of such a large tract of land on the arid Bukit Peninsula appear not to be an immediate issue, the project again ran into problems last November over the question of valid permits, water shortage and whether Bali actually needed another under-utilised golf course.
Development was then halted briefly earlier this year, while the issue of permits allegedly issued back in 1995 by the then and since discredited Bali Governor, I.B. Oka, was sorted.
Further objections have been raised by surfers and lovers of Dreamland Beach, not to mention the various unlicensed businesses, restaurants and homestays that have sprung up at the prospect of what is being billed by the developers, in a bizarre stretch of the imagination, as the ‘New Kuta Beach’. These informal establishments now face closure or enforced re-location to standardised premises within the beachside development.
While the possibility of further hitches along the way remains for this and other mega-developments on the Bukit, it seems that nothing will halt for long the peninsula’s inexorable inflow of villa/resort investment and development. The last 12 months have seen a succession of major luxury developments opening or announced, starting with the Bulgari and including Alila Uluwatu, St Regis, Outrigger and Banyan Tree.
More are in the pipeline, not to mention numerous designer state-of-the-art homes built by private individuals. Bali itself is on a roll, with tourists flooding back into Bali in greater numbers than ever before, and spending more than ever before. Bali is trading up big time.
Goodbye Kuta, Hello Bukit ... or was that New Kuta? Only time will tell, but on the west and south Bukit, we may well be looking at the early stages of a Southeast Asian Cte D’Azur. Watch this space for nearby marina developments
Anantara Resort Seminyak opening in December
Anantara is set to open its boutique 59-suite resort property in Seminyak on December 15, during Bali’s low season. The Bali property, a 30-minute drive from the international airport, marks Anatara’s first project in Indonesia and will complement the group’s three existing resorts in Thailand (Golden Triangle, Hua Hin, Koh Samui) and the Maldives.
Enjoying a prime 3,500sqm beachfront location next to the Gado Gado restaurant, Anantara Resort Seminyak features 59 suite accommodation units on four floors, with prices starting from US$305,000 and owners enjoying an annual rental guarantee of 8% for three years plus 28 days’ free usage a year.
Just a short stroll from the glamorous hub of Seminyak, with its hip designer ateliers and cosmopolitan dining nightlife, the resort reflects the lifestyle and culture of its stylish surroundings. The design is spearheaded by the architectural vision of Anthony Liu, whose firm TonTon is renowned for its innovative tropical designs such as the Bale Resort in Nusa Dua.
Each spacious suite in the five-storey resort, which are all about 70-80sqm in size, has an ocean view, accentuating the resort’s breezy, relaxed atmosphere. Making the most of the Indian Ocean panorama, the contemporary design includes extensive glass panelling to bring the vast waterscape of Seminyak Beach into the interiors. All suites feature plasma-screen TVs, contemporary Asian-inspired furniture, broadband internet connection and a private bar.
The resort has a stylish rooftop bar with languorous settees and oversized cushions, so guests can chill out and soak in the famous Balinese sunsets. Serving up new world and Asian fare, and overlooking the wide expanses of beach below, the rooftop is set to be one of the island’s premier dining venues.
The Thai restaurant on the lobby level will offer a mix of traditional Thai and contemporary fusion-styled dishes, inspired by Thailand’s four main provinces. Transforming from a daily breakfast venue into an ambient-lit dinner venue, the restaurant is punctuated with exquisite local and Thai object d’art.
Further features at the resort include an infinity-edge pool overlooking the ocean vista, a fitness facility and the island’s first Anantara Spa, consisting of four double suites and eight treatment beds. Featuring Balinese design and decor, each spa room will be equipped with private Jacuzzi and ocean views.