Indonesia government to allow tourism developers to manage private islands

Friday, 16 Jan, 2017 0
The Indonesia government said it will allow foreign developers to manage entire Indonesian islands for tourism.
 
The country has long considered handing over small islands for development to help disperse tourism away from overcrowded Bali.
 
Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said the potential for Maldives style island resorts is huge, given that Indonesia has more than 4,000 islands uninhabited and nameless.  
 
The world’s biggest archipelago comprises about 17,000 islands in total.
 
Any deal will be for a long term management lease and not outright ownership, Luhut said.
 
Luhut cited recent negotiations with a Japanese developer to take over the island of Morotai in Maluku province as a retirement resort village. 
 
"It will be done using the business mechanism; there will be no transfer of ownership, he said, adding that developers will be free to name islands as they see fit.
 
"If the island is for tourists—it’s fine, as long as there are plans and regulations," said planning minister Sofyan Djalil.
 
Potential developers would likely have to commit to solely developing infrastructure to and on the islands themselves and aside from island resort developers, may also interest cruise companies.


 

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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