Foreigner Property Ownership Regulations Being Drawn Up
Jakarta Globe 28/6/15
Jakarta. Foreigners living in Indonesia will be able to secure the “Right to Use” property in the country for as long as they live under a newly planned state policy, according to a government official.
Minister for Agrarian Affairs and Spatial Planning Ferry Mursyidan Baldan revealed that his office had been tasked with drafting a new regulation on the matter.
“The regulation will include details on ownership periods, requirements, and rights and obligations of expatriates who will be granted the right to purchase and own property in Indonesia,” Ferry said in Jakarta last week.
He added, however, that foreigners would only be allowed to own luxury apartments; they are still prohibited from purchasing landed property or low-cost apartment units.
Foreigners also will be only entitled to “hak pakai,” or the Right of Use; not “hak milik,” the highest form of ownership in Indonesia, or Freehold. The Right of Use is permanent and will not have to renewed every 25 years as specified in the current regulations.
“The state allows foreigners to own living spaces in Indonesia for as long as they live, and they’ll be able to trade the properties or pass them down to their children. [Ownership] is classified as Right of Use, though. It will not be Freehold,” Ferry said.
Freeholds are permitted for foreign embassies operating in the country, he added
The minister further said he disagreed with the proposal of a “zoning” regulation in the planned policy, which would allow foreign nationals to own property in certain areas of the country.
He pointed to the capital, saying foreigners would only be interesting in purchasing apartments in Kemang or the Central Business District areas of South Jakarta.
“Foreigners wouldn’t want to buy apartments in, say, Kebon Jeruk [West Jakarta] and other areas. It’s useless to limit the areas where they can purchase [a piece of property].”
The draft regulation will replace a 1996 government regulation on foreign ownership of properties in Indonesia, and is expected to be complete by the end of the year, Ferry added
Finance minister Bambang Brodjonegoro earlier said that the government would allow foreigners to own property in Indonesia, but they would be restricted to luxury apartments that cost at least Rp 5 billion ($375,000) per unit.
The decision was made after President Joko Widodo met with officials from property group Real Estate Indonesia (REI) last Tuesday.
Presidential spokesman Teten Masduki said Joko had approved the suggestion from REI officials to support the domestic property sector following the slowdown of Indonesia’s economy. The policy is also expected to bolster the confidence of developers in staying competitive in the regional market.
Property developers have welcomed the plan. Rudy Margono, president director of private developer Gapura Prima said the new policy could boost property growth by 20 percent.
Property observers like Ali Tranghanda, however, expressed concerns that the regulation would only trigger a property bubble if not handled carefully, pointing out the absence of an instrument to control land prices in Indonesia.
“I am concerned that if the market is fully open, we will have a property bubbles within five years,” he warned.
The Indonesian expatriate community, meanwhile, seems skeptical of the reported plan, with some saying the proposed Rp 5 billion benchmark was too high and others claiming the policy is no different from a changing lease scheme.
“In the short run, economy gets a boost from new construction; in the long run, [price of] land in high-rise zoning [areas] skyrocket and the adjacent real estate will follow suit. Yes, most low-income earners will be further marginalized,” one opponent of the proposed policy commented on Facebook.
“Perhaps what [the government] means is legal ownership of property by foreigners… Foreigners have already purchased many plots of land in Bali,” tweeted another.
“If foreigners are allowed to own property in Indonesia, it will be no different from pawning off the nation’s sovereignty. Where will they send the locals to??” another commenter posted on Twitter.
Vice President Jusuf Kalla, however, defended the planned policy, saying last week: “There are a lot of foreigners working in Indonesia now… some have been working well, some have been developing businesses. It is normal for them to purchase, instead of continually leasing properties,” Kalla said.
Investment Coordinating Board (BKPM) head Franky Sibarani, meanwhile, said foreign purchases of properties should be encouraged in eight special economic zones, or KEK, currently under development in Indonesia.These include: Sei Mangkei in North Sumatra; Tanjung Api-Api, South Sumatra; Tanjung Lesung, Banten; Mandalika in West Nusa Tenggara; Maloy Batuta Trans Kalimantan, East Kalimantan; Palu, Central Sulawesi; Bitung in North Sulaewesi; and Morotai, North Maluku.
“We fully support the policy, but all we ask is for it to apply to special economic zones, particularly those designated for tourism, in order to guarantee investment in those regions,” Franky said, as quoted by cnnindonesia.com.
FOREIGNER PROPERTY OWNERSHIP IN INDONESIA
Jakarta Globe 25/6/15
Jakarta. Developers have applauded the government’s planned policy that will allow foreigners to own properties in Indonesia as they say it will bring more opportunities to the property sector, which is facing sluggish growth.
Iwan Sunito, chief executive officer of Crown Group, said the new policy would boost developers from national to global players. Foreign ownership could help expand the market to international buyers amid economic slowdown.
“The developers had only been focused on the domestic market. When the economy is weakening, the property market is impacted and shows a decline.
“With the new market for foreigners, it will encourage developers to have more developments with international standards.”
Still, Iwan warned the government to keep an eye on the policy’s implementation to secure local property prices.
Finance minister Bambang Brodjonegoro said on Wednesday that the government would allow foreigners to have property in Indonesia, but would restrict it to luxury apartments that cost at least Rp 5 billion per unit. His ministry is currently working on revising the 1996 government regulation on foreign ownership of property.
The decision was made after President Joko Widodo met with officials from property association Real Estate Indonesia (REI) on Tuesday.
President Joko Widodo’s spokesman Teten Masduki said that the president approved the suggestion from REI officials to support the domestic property sector following the slowdown of Indonesia’s domestic economy. The policy is also expected to bolster the confidence of developers to compete in the regional market.
Rudy Margono, president director of private developer Gapura Prima Group, also welcomed the new policy, which he said could boost property growth by 20 percent.
“We hope the regulation will arrange that foreigners can only own property that is more than 100 square meters and located above the second floor of the apartment,” he said on Wednesday.
Director of Megapolitan Development Desi Yuliana said he expected the government to complete the regulation as soon as possible.
“If the regulation is put into effect the sales of Megapolitan property will increase whether [the projects] in Cinere, Depok of West Java, Karawaci in Tangerang and Bogor in West Java,” she said.
Amran Nukman, the head of REI’s Jakarta branch, said the new regulation was important because Indonesia will be entering the Asean Economic Community in the next six months.
He claimed that if the government did not allow foreign ownership, Indonesia’s wealthy people would buy properties overseas due to the high return of investment. The result would be no additional flow of investment to Indonesia that would ultimately impact on economic growth and property sector.
The regulation will have multiplier effect on property’s supporting industries, such as cement, ceramics and also the construction work force.
Separately, Andi Rukman Karumpa, secretary general at the Indonesia Builders Association or Gapensi, said the new policy would help boost the construction market, which he said will be “even sexier.” The construction sector is one of 138 industries related to property.
Before the government announced the policy, Andi said, the construction market was projected to grow 14.26 percent, or about Rp 446 trillion, this year following the government’s plan to accelerate infrastructure development.
Indonesia’s construction market was valued at $267 billion last year, the fourth biggest in Asia after China ($1.78 trillion), Japan ($742 billion) and India (427 billion).
However, property observer Ali Tranghanda said the regulation must contain clear restrictions, such as on zoning and price. The government must also limit the ownership to apartments, not landed property, he said.
Ali added that there was no instrument to control land price in Indonesia such as land banks, which should be of concern.
“I am concerned if the market is fully open, we will be in the property bubbles state within five years,” he said.
Investor Daily & GlobeAsia
Madalika Resort Construction Finally Underway
April 20th 2014
Since inception in October 2011 the Mandalika Project, in south Lombok has made a slow start. But the BDTC (Bali Tourism Development Corporation) has finally made a start. In a comment by the head of BDTC, Untung Darmagundadi, the head of development division, said the building of the infrastructure for the luxury resort would commence Monday (22nd April) With the 27km road that runs east to west across the region between Gerupk and Kuta started in December last year, utility companies can now install electricity, water and telecommunications facilities together with other state owned companies.
A 3,000 hectares conservation area in the hills surrounding the Mandalika Resort have been set aside to protect the stunning views, these areas are home to many of Lombok's native plants and animals and only activities that have little or no impact on the area will be allowed, this conservation is part of the ongoing commitment to ensure that the development of Lombok Island has as little effect on the environment as possible.
The development of The Mandalika Resort will be in three phases spread over the next 7 years and will be improved by what BDTC had learned from previous projects. Much of the delay with the project had been regarding protests from local people, however these issues have been resolved allowing development to commence. The resort of Mandalika, designed by the government is a part of a master plan to expand Indonesian Economic Development with an investment of US$192m with further financial support from the World Bank. Source Jakarta Post 15th April 2014
Tripadvisor puts Gili Trawangan at No.5
The world's largest travel website, Tripadvisor has awarded Gili Trawangan 5th place in its Travellers' Choice Island Awards 2014. The annual awards were selected from over 100 islands around the world and are based on the quality and quantity of attractions, restaurants and rated hotels for each island over a one year period. Gili Trawangan was placed above better known islands like Phuket in Thailand and Boracay in the Philippines, this prestigious accolade further enhances Lombok and its famous Gili's, on its ever increasing presence in the world and underlines why the Island of Lombok is an investors and developers dream.
“The award reveals that the global community of Tripadvisor has acknowledged Gili Trawangan as one of the top island destinations in Asia. The awards have also boosted our confidence in attracting more travellers and tourists to the wonders of Indonesia” said the Director General of Marketing of the Ministry of Tourism and Creative Economy, Esthy Reko Astuti.
Lombok Ferrari ?
Abdul Latif a mechanic and engineer with his own workshop plus he has a huge craze for Formula 1, mix this all up with a load of determination and you get Lombok's first replica F1 Ferrari built from scratch. Based on a 1980 Daihatsu, he used its 550cc engine, chassis, shock absorbers, wheels and tires. The bodywork was handmade out of fibre glass cast in his work shop and he pointed out the time it took to get shade of red absolutely spot on, an estimated 4 months! Sourcing the stickers and sponsors logos was virtually impossible so much of the art work Latif did himself showing an amazing level of attention to detail.
The small 550cc engine will not pin him back in his seat through massive G-Force but it's reliable and easy to source spares. The car is road legal with front and rear LED lights, first aid kit and a tool kit and the cockpit has a bucket seat and four point harness.
Amazingly Latif completed this on a budget of only $4000!! and he plans to build a larger replica that would be similar in size to that of the real Scuderia Ferrari F1. Can' wait to see it!
Emirates and Jetstar sign codeshare
Emirates and Jetstar Airways announce a codeshare agreement.
The deal will see a number of Jeststar routes with Emirates Airline Codes on Australia, New Zealand, and Jetstar Asia routes. This will give Emirates passengers 27 routes and access to six new destinations one of which is Bali. This will give Emirates Skywards travellers the ability to earn Skywards air miles on Jetstar routes that use the Emirates code together with the capability to spend air miles on Jetstar flights.
Speaking from Dubai International Airport, Emirates senior vice president Adnan Kazim said "This new link between Emirates and Jetstar offers our passengers a number of benefits including new routes to destinations that are not part of the Emirates network today and giving them more options to use their miles to explore new countries and cultures."
The codeshare will give all passengers on Emirates using Jetstar flights boarding passes at their first international checkin departure point from the 6th April.
Included domestic routes are seven in Australia six between Australia and New Zealand and four within New Zealand, also included are International routes out of Singapore to Bali Indonesia, Vietnam, Malaysia, Thailand and Hong Kong.
Chief Commercial Officer for the Jetstar GroupLisa Brock said "Working with Emirates we have created a product and a network offering that will provide Emirates passengers with new holiday options throughout south-east Asia including Bali, Siem Reap and Phnom Penh and new destinations across Australia and New Zealand. Emirates customers travelling on Jetstar will enjoy a range of full service fare features such as food and beverage options and the same luggage allowance they would have on Emirates." www.eirates.com www.jetstar.com
W.Nusa Tenggara Propmotes " Green Tourism" for Lombok and Sumbawa
November 17 2013, 9:24 PM
The West Nusa Tenggara (NTB) administration has said it was committed to working with all relevant stakeholders to promote the development of green or 'eco' tourism in Lombok and Sumbawa.
“For NTB, the development of the tourism sector is not only about the development of good infrastructure but also about how tourism can support environment protection and management. Tourism should not cause environmental damage,” said NTB Governor TGH M. Zainul Majdi at a national seminar on green tourism at the University of Mataram in Lombok on Saturday.
Zainul said that nationally, NTB ranked third behind Bali and Yogyakarta on tourism sector growth in the last two years.
“Lombok is a tiny island and it will be difficult for all of us if development activities are not supported with environmental sustainability,” said Zainul.
The NTB administration has placed the tourism sector as its second most important for development, after agriculture.
“Tourism is important because NTB is blessed with exotic natural beauty from beaches to mountains. The province is also rich with religious culture,” Zainul said.
The head of the province’s tourism promotion board, Awanadhi Aswinabawa, said green tourism development in the province should focus on three things: conserving local wisdom, environmental protection and management, and environmentally friendly policies by the local administration.
In NTB, Awanadhi said, many ideas for green tourism ideas originally came from the province’s indigenous communities.
In Segenter village, Bayan district, North Lombok, local communities still manage their indigenous forests using customary laws called awiq-awiq. (ebf) Source Jakata Post 17th November 2013
Tourism is on the Increase in Indonesia
Indonesia'sCentral Bureau of Statistics announced that tourist levels have increased by 12.7% from January to September this year due mainly to Indonesia hosting International events such as APEC in Bali and the Miss World Contest, however the largest of these increases was seen at Lombok International Airport, a staggering 109.5%! The top direct arrival destination is still Bali with 2.38m passenger through the same period.
International Route Perth to Lombok Australian Airline Jeststar will start a 4 times a week service from Perth Western Australia to Lombok International Airport using the Airbus 320, by Perth Airports Executive Genaral Manager Fiona Lander, initially it was due to start in July but was put back to September. It is understood the the service will opertate Tuesdays, Thursdays, Fridays,and Sundays, leaving Perth at 10:25am and the returning flight to Perth at 18:45 local. The service will be complimented initially with introductory fares. For more information www.jetstar.com.au source, thewest.com.au 17th June 2013
Mandalika Resort to Start Within Months
Indonesia's, soon to be famed premier resort, The Mandalika Resort, is due to start several projects this year. Edwin Darmaseliawan, development director of the state run Bali Tourism Development Corporation (BTDC) announced that within the next few months, construction work will begin for the access roads for the resort, adding that as well as the roads, several companies are to commence construction of hotels and villa resorts.
The famed Luxury Resort, located in the south of the island and is around a 20 minute drive from Lombok International Airport, will boast over 7km of Indian Ocean beaches offering stunning views, fishing and snorkelling.
The Resort will also offer high end nature and sports based tourism, and has a number of top end companies, like France's Club Mediterranee, Global International and MCN Land, committed to the project. Together these firms would be building five star hotels costing around US$41.2 million (Rp 400billion).Construction taking 18 month BTDC said the hotels could expect to start operation towards the end of 2015 at the earliest. source Jakarta Globe 27/03/13
2015 Visit Lombok Sumbawa
The provincial administration of the West Nusa Tenggara (NTB) has issued confirmed plans, that in 2015, will draw 2 million visitors to Lombok and Sumbawa. The plan called 2015 Visit Lombok Sumbawa was announced after the success of a similar in 2012 launched by President Susilo Bambang Yudhoyonon that hit its target of one million visitors to the islands. One of the key selling points for 2015 the bi centennial celebration of the volcanic eruption Mt. Tambora in Sumbawa, That was one of the worlds largest eruptions and had prolonged effects on all corners of the world, even affecting seasonal cycles in Europe. Other attractions such as Senggigi Beach and Gili Trawangan Island will provide the 2015celebration with a stunning backdrop that will pave the way to global awareness of this part of the Indonesian archipelago.
The greatly improved access to this area is thanks to Lombok International Airport that opened in October 2011, serving flights to and from Australia, Malaysia and Singapore. Hauls Mandala, a member of the NTB Tourism Promotion Agency said that in order to reach 2 million visitors in 2015 the administration, every stakeholder and developer should not only start developing, but also should start to help organise local communities whilst respecting their requirements. Small assist groups have been formed to assist small local business entrepreneurs and local communities on the needsrequired to be part of a successful tourist industry, its is expect that some 200 of these types of groups will be in place by the end of 2013
Indonesia Sees Light at the end of the economic tunnel
It's becoming clear that as the western markets begin the slow climb out of, what can only be called the worst recession in modern history, Indonesia is one of the survivors that has paved the way for early investors to create stability and trust in the property investment market. This has prompted passenger and cargo traffic to increase and budget airline AirAsia has started scheduled direct flights between Kuala Lumpur and Lombok's new International Airport. This route now supports two major airlines in linking this emerging holiday destination with the rest of Indonesia. It is expect that soon global international carriers will be adding Lombok as a premier destination.
Increased direct flights to Lombok East Indonesia is seeing a dramatic increase in direct flights buy budget carriers to exotic destinations like Central Sulawesi, Papua and more notably Lombok. This increase has been fuelled by Indonesia's low cost carrier Citilink owned by the national carrier Garuda. They have increased flights between Surabaya and Lombok to two flights a day with special rate fares from 280,000 Rp for a one way ticket. More information can be found on Citilink's website www.citilink.co.id or calling 0804 1 080808.
5000 Trees Planted By Pertamina
16th April 2012 PT Pertamina, the state oil and gas company, commenced planting 5,000 trees around Lombok International Airport. The move, supported by the Transportation Ministry, displays the commitment that Pertamina has to the Lombokenvironment to reduce emissions, Pertamina human resources director Rukimi Hadihartini said " the planting of the trees is part of Pertamina's social responsibility and our ongoing commitment to plant one billion trees in Indonesia " adding, she said " particular attention will be paid to those areas that were affected by the 2010 volcano eruptions in Yogyakarta It is hoped that by 2015 50 million trees will have been planted across Indonesia and reducing carbon emissions up to 314 million tons per year.
Photo: Lombok Island Property
UK Prime Minister Visits Indonesia
11th April 2012
Arriving in Indonesia this morning, UK Prime Minister David Cameron announced a boost for UK jobs with a contract to sell 11 Airbus A330 aircraft valued at $517.5m to the national Carrier Garuda Airlines. Not only is this great news for UK jobs, but shows new found interest in the rapidly developing Indonesian Market.
Accompanying the Prime Minister on his visit is a vast selection of British Business men and women, form all sectors like Financial Establishments and Defence Companies, " they will help link up British Companies with the market here in Indonesia thus creating jobs and investment back in the UK" he said
Richard Branson and the Indonesia archipelago
Visitors and holiday makers to the Caribbean alike, will more than be aware that Birtish entrepreneur, Virgin Airlines boss, Sir Richard Branson likes his tropical retreats. Mainly know for owning the island of Necker and various properties in Antigua And Barbuda in the Caribbean, Sir Richard is now the owner of a more than modest estate on the island of Bali, consisting of seven houses, bamboo bridge over a river, countless hideaway huts, a yoga pavilion and 26m spring pool, it's previous owner Linda Garland, environmentalist and Irish designer rented out the estate to the rich and famous as a "relaxing retreat" Situated in the picturesque hills of Nyuh Kuning Bali, its a far cry from one of Richard's better known London properties, Kensington Roof Gardens and the scatter flamingos.
Source: London Evening Standard 14th March 2012
Garuda Orient Holidays Celibrate 30 years
"Bali and Indonesia" the new title for the 2012 30th anniversary revamped holiday brochure for Garuda Orient Holidays. Covering the whole archipelago of Indonesia from Papua to Sumatra, it's aimed at the Australian and New Zealand market and lists sightseeing packages activities and accommodation and is the most comprehensive Indonesia, Bali brochure yet.
"... we really wanted to take things to another level with this brochure" said Deb Corbett Garuda Orient Holidays marketing manager " ... With over 17000 islands and the 30th anniversary we wanted to emphasise the beauty and diversity of the region. Over the past year we have seen a huge growth of customers wanting to experience an Indonesia beyond Bali and to take in more of the sights and activities like world class surfing and diving that can be found thoughout the Indonesian Islands"
" The biggest change for any company is branding and we felt that the anniversary was the right time"
The brochure still has a strong lean towards Bali but also contains in depth listings of many of the far reached islands. The profile of Lombok Island has also been lifted after the opening in October 2011 of the new Lombok International Airport and the Indonesian Government interest in increasing tourism and development on the island.
The 90 page brochure features tours such as a Jakarta Capital Tour, 7 days in the Borneo jungle to see the orang-utans. Source: Travel Blackboard
Qatar Sovereign Wealth Fund
Of those bidding for the Lombok Tourism Project, Qatar's Sovereign Wealth Fund property arm Qatari Diar it's expected to win the lucrative $600m contract according to Gita Wirjawan the investment chief for Indonesia.
"The Qataris are the most serious bidder as they have met the local government," Wirjawan said.
The short list consists of Qatari Diar, Rakeen ( UAERas Al Khaimah's wealth fund) and an anonymous firm from Abu Dhabi. Emaar Properties, the largest listed developer in the world, who had initially expect to develop the projected had been left out due to unknown reasons.
The entire project stretches along seven kilometres of the south coast of Lombok and covers an area of 1200 hectares, and will boast a residential community of 10,000 luxury villas, eight hotels and two world class 18 hole golf courses and a beach stretching the whole length off the development. Source: ArabianNews.com
Indonesian provinces reach out to Russian investors
Four Indonesian provincial governments competed with each other here on Monday to attract Russian investors to develop resource-based ventures and infrastructure in their respective regions.
North Sulawesi GovernorSinyo Harry Sarundajang offered railway, toll road and geothermal projects. North Sumatra acting governor Gatot Pujo Nugroho promoted toll road projects and palm oil-based industries. East Kalimantan Regional SecretaryIrianto Lambire highlighted opportunities in coal-transportation, palm oil and cacao plantation projects, while the West Nusa Tenggara Regional Investment Board chief promoted seaweed and tourism-related businesses.
“The six governors in Sulawesi will meet next month in the North Sulawesi provincial capital of Manado to discuss the development of the 1,200km Trans-Sulawesi railway project,” Sarundajang said at the Indonesia-Russia investment forum here on Monday. Vincent Lingga, The Jakarta Post, Moscow | Wed, 09/14/2011 8:00 AM
Lombok International Airport, Vice President "Finish It On Time"
MATARAM, KOMPAS - Vice President Boediono has requested that the construction of facilities and infrastructure of Lombok International Airport, Central Lombok, Western Nusa Tenggara is not delayed. Vice President expects the airport to be completed on time so that it can function immediately.
“Lombok International Airport (BIL) is fully supported by the government. The Vice President said "I am very pleased to be able to see it for myself. Even if I cannot attend it (the coming inauguration event), I expect Lombok International Airport to be fully operational on or by 1 October, 2011,” The Vice President was inspecting the airport project that is located near Tanak Awu village, Central Lombok, or 30km southeast of Mataram, the capital of Western Nusa Tenggara.
Vice President highly expected that Angkasa Pura holds fast to the promise of BIL operation on the coming 1 October. “If there is problem, report it to the partners immediately. Do not delay it. Communicate it immediately,” Vice President Boediono said.
Previously, Operational and Technical Director of PT Angkasa Pura, Haryoso Catur Prayitno, explained on the matter of BIL physical work. The terminal construction had been delayed for 11 months due to design change. Currently, the development of physical construction has reached 85 percent, Pertamina installations of 60 percent; all of which are expected to be completed in 30 July.
The facilities that have been completed are runway (2750m long and can receive wide-bodied aircrafts such as Airbus A 330, taxi way, apron, tower, VIP facilities, information facilities, clean water installation, electricity, telephone, and parking lot.
After the physical work on BIL that is located on a 551ha area and consumes Rp 945.85 billion of development funds, PT Angkasa Pura will immediately perform a re-verification of aviation equipment on the coming 31 August.
NTB (Western Nusa Tenggara) Governor Zainul Madji said that the promise of 1 October operation is a promise to the public.
Lombok International Airport is highly needed, considering that Selaparang Airport nowadays is no longer adequate. Selaparang Airport can only serve 850 passengers per year despite the fact that airplane (service) users reach 1.2 million people.
BIL has been initiated since the 90s, during Warsito’s tenure as NTB Governor. It was initiated under the view that Selaparang Airport in the future will be overloaded with passengers, considering that Lombok is gradually becoming a tourism destination. The construction of BIL is included in the package of Kuta tourism development in Central Lombok.
However, in the process, BIL is marred by problems from land owners, who, among others, were reluctant to sell that land as their source of living, or would willing to sell it only at a high price so that they could purchase land in another location for agriculture. BIL construction has also sacrificed irrigation facilities for rice fields.
The condition has made the construction plan grind to a halt, and even causing clashes between the police and land owners. Through a difficult negotiation between NTB Provincial Government and Central Lombok Provincial Government, BIL eventually started construction in 2006.
Based on the consideration of PT Angkasa Pura I, the runway of Selaparang Airport cannot be extended since it has reached the maximum length of 2500m and the local terrain restricts further expansion.
Aside of the issues of passenger overload such as pointed out by Governor Zainul Madji, there are also technical aspects that support the construction of BIL. For example, aircraft can only take one heading for landing approach; namely, from the south, considering that there are hills in the north. This condition is considered not ideal, and it even causes difficulty in monitoring when the flights are many. (RUL)
Government say Lombok International Airport set for October 2011 Opening
The government now estimates the inauguration of the Lombok International Airport, on Bali's near neighbor island to the east, will take place in October 2011.
Kompas.com reports that the long-delayed project is now in its final stages of completion, including the acquisition of lands needed to improve access to the new airport.
Sapto Kariyadi, the sales manager of the Lombok branch office of Garuda Indonesia in Mataram, Lombok, said: "This can't be postponed further. The airport must be quickly finished due to its meaning for the development of the economy of the island of Lombok."
Sapto said the new Lombok airport will enhance tourism to Lombok due to its ability to handle larger aircraft.
During a visit to the new airport on Monday, June 13, 2011, the vice-minister for transportation, Bambang Susantono, called on contractors to hasten the completion of their work. Said Susantono, "if we want to inaugurate the airport in October, then all work on the airport has to be completed by September."
Sisantono confirmed that the radar and navigation systems are operating and ready to go, with only the terminal and road access work still uncompleted. Bali Discovery Tours (6/18/2011)
Caterpillar and Coca Cola plan big investments
A number of American companies have expressed firm commitment to doing business in Indonesia to tap into the growing business opportunities in Southeast Asia’s largest economy, a senior government official said.
Some of the companies planned to enhance their existing businesses, while others would open new plants, Investment Coordinating Board (BKPM) chairman Gita Wirjawan said in Jakarta on Wednesday.
Most of the companies are involved in a wide range of business activities including oil and gas and the manufacturing industry, Gita said on the sidelines of the seventh conference of Overseas Private Investment Corporation (OPIC) in Jakarta.
Gita said heavy-equipment manufacturing company Caterpillar, for example, planned to spend between US$300 million and $500 million to build a new plant in Indonesia. Caterpillar, which operates a plant in Thailand, saw Indonesia as a growing market, especially for heavy equipment, he said, adding that the company was currently waiting for fiscal incentives from the government.
Gita said that beverage producer Coca Cola, which currently serves 80 million consumers nationwide, also planned to spend $500 million in new investments to further strengthen the company’s business in Indonesia. The Jakarta Post 05/05/2011
28th April 2011
Lombok Intl Airport to open in July
The Lombok International Airport (BIL) in West Nusa Tenggara is set to start operating in July this year, an official says.
“BIL is almost ready, it will begin operating in July at the latest,” Tommy Soetomo, director of state-owned airport management company PT Angkasa Pura I, said on Wednesday as quoted by tribunnews.com.
He also said all commercial flight activities would be moved to the new airport from the old Selaparang International Aiport in Mataram.
The construction of the new international airport has now entered the final phase, he added. Jakarta Post 27/04/11
26th April 2011
Lombok International will be Officially Opened In March 2012
Indonesian President Susilo Bambang Yudhoyono will officially open problem plagued Lombok International Airport in March next year, state news agency Antara reported on Monday.
Erdi Nuka, general manager of the Mataram branch of state airport management company Angkasa Pura-1, said Yudhoyono would inaugurate the airport when it was completed.
“The president wants to dedicate the airport in March 2011 when all the aviation facilities have been completed and test runs had also been carried out,” Erdi Nuka said.
He said construction of the airport was 90 percent complete and would be finished by December this year. Antara reported that the project had been suffered numerous problems, including security issues, theft of construction materials and equipment, land disputes, tensions with villagers, the quality of the main runway and problems with the control tower.
The Indonesian government is actively promoting both Lombok and neighboring SumbawaIsland to compete against Bali.
Yudhoyono, the Ministry of Culture and Tourism and the regional governor have issued statements supporting the development of Lombok as a tourism destination and have set an annual goal of 1 million visitors by 2012 for both Lombok and Sumbawa. Antara/Jakarta Globe
11th March 2011
Indonesia-Sremski Airlines ( Open ) Indonesia-Sremski Airlines is the result of the successful merger between Indonesia Imperial Airlines and Sremski Airlines, the flag carriers of the People's Republic of Sremski Okrug and the Indonesian Empire of Yohannes. Indonesia-Sremski registered office and corporate headquarters is located in Jakarta, Kingdom of Java, with it's main operations base and primary traffic hub and Surabaya International Airport in Surabaya, with a second hub at Lombok International
Airport. The majority of the companies pilots operate from Jakarta, while others operate in hubs in Sremski Okrug. NationStates.net
9th March 2011
ON TRACK TO LAUNCH, LOMBOK INTERNATIONAL AIRPORT INDONESIA
Lombok International Airport is targeted to start operate at the end of July 2011, the shareholders agreed. Located at Tanah Awu in Lombok Tengah district, West Nusat Tenggara (NTB) and established on 595 hectare, the airport is planned to adopt green airport concept. The construction is a part of airport infrastructure improvement projects based on the Indonesia Infrastructure Summit in 2005.
Currently, Lombok is serviced by Selaparang Airport, the existing airport situated at Ampenan on the West coast of Lombok near the capital of Mataram. As tourism progressing, the establishment of the new airport will support to serve flight to eastern Indonesia. Regarding Lombok and Sumbawa promoted to be Indonesia's tourism destination after Bali, the future airport will be a huge advantage for tourism, as well as trade, both domestic and international. www.nafed.go.id
..."As new markets are emerging low cost carriers and charter flights are high demand generators. An example of competing regional destinations is the new international airport in the emerging tourist island of Lombok in Indonesia near to Bali, which looks set to leapfrog growth with its ability to land Boeing 747 and Airbus wide body aircraft," Mr Barnett said. "Koh Samui's journey from an idyllic Robinson Crusoe-like paradise to a mainstream market has hit the halfway marker. asiatraveltips.com 10/02/11
7th February 2011
John Thompson & Partners is developing a sustainable masterplan for a 250haeco-tourism resort on the Indonesian island of Lombok
The authorities want the island to become the region’s next major tourist destination and a new international airport is being built to bring in up to 1.5 million visitors a year.
But the government is also determined not to repeat the mistakes of other “paradise” destinations, like Bali, which have been damaged by mass tourism.
An international multi-disciplinary team has been brought in, led by Stockholm-based, British-born social entrepreneur John Higson.
The plan is to design and develop a resort in Tanjung Ringgitt, the most easterly part of east Lombok’s Pemongkong peninsula, as well as write development codes for the whole 1,500ha area.
JTP is working with German eco-architect Joachim Eble on the codes and the conceptual masterplan for the resort.
The team, which is based on a yacht since there were no suitable local buildings, also includes specialists in sustainability, health, education, and permaculture. It spent early January engaged in a community consultation exercise.
Team members toured the area, met local planners and held a charrette with around 100 mostly illiterate fishermen and farmers from the three villages in the area.
“It enabled everyone to articulate what they value, their concerns and aspirations for the future,” said JTP partner Charles Campion.
“I was impressed by how aware the communities were about the issues and opportunities that this eco resort will bring.
“Working in 40°C of heat in an army tent, the charrette process began with a workshop and then moved on to hands-on planning groups to develop design concepts and strategies for the eco-resort and the development of the wider community.”
The aspiration is that the resort – and a soon-to-be-established community fund – will lift the area out of extreme poverty sustainably. If the equivalent of outline planning is won, construction work could begin this summer. bdonline.co.uk 07/02/11
31st January 2011
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2011) - Southern Arc Minerals Inc. (TSX VENTURE:SA) ("Southern Arc" or the "Company") is pleased to announce the appointment of Robert Gallagher to its Board of Directors.
Mr. Gallagher has worked in the mining industry for over 32 years and spent 15 years with Placer Dome Inc. and seven years with Newmont Mining Corporation, most recently as Vice President Operations, Asia Pacific. Mr. Gallagher is President, CEO, and Director of New Gold Inc. (TSX:NGD)(NYSE Amex:NGD), an intermediate gold producer with projects on three continents and a market capitalization of $3.2 billion. Prior to the merger of Peak Gold, Metallica and New Gold, Robert Gallagher was the President and Chief Executive Officer of Peak Gold from February 2008. Mr. Gallagher holds a Bachelor of Applied Science in Mineral Processing.
During his tenure at Newmont, Mr. Gallagher oversaw the development of Batu Hijau, the billion tonne, world-class copper-gold mine located on Sumbawa Island. The Batu Hijau mine is just south of Southern Arc's Taliwang project, west of the Company's East Elang project, and one island to the east of Southern Arc's flagship property on Lombok Island.
The Company's projects are positioned for significant advancement in Indonesia, and Mr. Gallagher's extensive knowledge of development and operation of large scale mining projects, coupled with his experience in all aspects of the Indonesianmining industry, are extremely well suited to Southern Arc's business plan. Marketwire 31st January 2011
20th January 2011
Traffic jams are now common in Bali, a victim of its own success in pulling in swarms of tourists and using the money to buy cars and turn rice paddies into hotels.
Across a narrow sea channel lies Lombok, another volcanic island ringed by beaches, where in the capital Mataram the few foreign visitors are more likely to be slowed down by a horse-drawn cart than a tailback of Toyotas.
But authorities in Indonesia, a current emerging market investor, have big plans for the island.
A new international airport is expected to open later this year, and Qatar's sovereign wealth fund is leading a bidding race to develop an unspoilt southern coastline of white sand into a world class resort and luxury residential community. Indonesia hopes such projects will overhaul its poor infrastructure, seen as both a hurdle to growth and a cash making opportunity, with Asia showing the most investment interest in a sign of new money flows between emerging markets. TVNZ.co.nz 20th January
14th January 2011
The Lombok International Airport Operator, Angkasa Pura, suggested in late December 2010 that the much delayed opening of the New International Airport in Central Lombok was likley to be in July 2011. This much awaited construction project's completion has been hindered several times by complications with the infrastructure in the surounding area.
With the New International Airport being the main key in the growth of tourism and industry, a major push is expected to complete the project and a date be fixed for the inauguration. Wikipedia 14th Jan 2011
4th January 2011
Gusti Ngurah Putra was quoted in the Jakarta Globe today
"The opening of more international airports this year, such as the new Lombok airport, would also help in reaching the 7.5 million goal — half a million more than last year’s target.
“We now have 17 international airports all over Indonesia,” he said. “It would really help the distribution of tourists as well as the development of tourism in several places that have cultural and natural attractions.”
The expectation was that several international entry points would lead to an increase in demand for tourism facilities such as hotels and restaurants.
But Putra added that the government was keen to ensure the ensuing tourism development was eco-friendly. A new destination management system, he said, would be employed by the ministry to effect this. Kakarta Globe 04/01/11
1st January 2011 After more than US$11 million investment in building the new Lombok International Airport, the original plans were to open the facility early March 2010, but they were put back after unfinished infrastructure-related elements, this included acquiring the land to build the highway access to the airport.
11th October 2010 Central Lombok, West Nusa Tenggara. Lombok International Airport will officially be open by Indonesian President, Susilo Bambang Yudhoyono in March 201, state news agency Antara reported Monday 11th October 2010.
The general manager, of the Mataram branch of the state airport management company Angkasa Pura-1, Erdi Nuka, said the Indonesian President will inaugurate the airport when it was completed.
Adding “The President wants to dedicate the airport in March 2011 when all the aviation facilities have been completed and test runs had also been carried out,”
He said construction of the New Lombok airport was 90 percent complete and would be finished by the end of 2010. The Government of Indonesia is actively promoting both Lombok and neighboring Sumbawa Island to compete against Bali. The Regional Governor and Yudhoyono, the Ministry of Culture and Tourism, have both issued statements in support of the Lombokdevelopment project to promote it as a major tourist destination, setting a goal of 1 million visitors by 2012 for both Lombok and Sumbawa. Extract from Jakarta Globe 11/10/10
1st October 2010
A marked shift for investors in south east Asia is moving to the Island of Lombok, Its famous sister island Bali is just a 20 minute flight away and is fast being called Bali II. Having already developed the south east of Lombok, the local Government has developed the Kaliantan area by way of new telecommunications, water and power supply and roads. Conveniently placed just 30 mins from the new International Airport, Kaliantan has all that's needed to attract tourists, providing ideal conditions for surfing, diving and snorkeling. The new International Airport will take some of the pressure off Bali's Ngua Rai Airport which due to surrounding terrain cannot be expanded, Lombok will be capable of handling the Airbus A300 range of aircraft and by 2015 the Airbus A380 and Boeing 747-400 which the current airport at Mataram can not due again to srrounding terrain restrictions.
Land prices on Lombok are still relatively low, but due to demand are showing a steady increase, making Lombok an ideal place for local and foreign investment.