Real Estate in Bali – #3 Infrastructure, Energy and Water

Real Estate in Bali infrastructure

This is the third in a series of six posts that looks at issues raised a year ago by Terje H. Nilsen, co-owner of Seven Stones Indonesia, in a blog entitled “What’s Wrong With Real Estate in Bali?

The third issue we’re looking at today is about Infrastructure, Energy and Water.

What Terje spoke about last year was in general the island’s infrastructure, energy and water were the biggest threats in the short to long term. And unless there was some serious political will to address them head on Bali could be facing some serious issues sooner rather than later.

So, what, if anything has happened in the last 12 months?

Let’s look at each area separately. First, infrastructure.

Have there been any infrastructural projects, like new roads or bridges that would go some way to alleviate the rapidly worsening congestion problems?

“Unfortunately, there’s not a lot to report,” says Terje. “It’s still a massive challenge and a very serious threat. But we’re hearing that after many years of speculation, late this year or early next, the extension of the Sunset Road will begin. New drawings of the final path have just recently been released.”

Those of you who are familiar with this project will know there have been more ‘fake news’ stories with ‘confirmed’ plans and drawings for years. So let’s wait and see if anything really moves forward.

“Another project in the pipeline is up North,” says Terje. “Where, according to recent news reports a new airport is slated to be built. There’s also talk of larger roads for the South. In general, I’d have to say we’re seeing much better maintenance of existing infrastructure and some good upgrades. Ngurah Rai International Airport, for example, has won several prizes as one of the best in the world in its class.”

Secondly, what about alternative energy initiatives? Did the local government get to install solar panels on every government building as they said they were going to do? Have there been any other initiatives or are there any more being planned?

“Short answer is no,” says Terje. “And it’s somewhat disappointing because there are more and more companies pushing to roll out alternative energy options from solar panels and storage to garbage management to geothermal. Not a lot of people know this but there is in fact, a fully functional geothermal power station already in Bedugul, which could easily increase its capacity. However, the existing government haven’t been very supportive of this for whatever reason.

“I think it’s fair to say wIth alternative energy in general and solar power in particular, it still boils down to political will. Opportunity and support for investors, entrepreneurs and companies ready to implement these initiatives on a larger scale should be more forthcoming.”

Let’s hope that changes. We’re big supporters of alternative energy and the central government’s initiatives to have 25% of the country with off-grid power by the year 2025. We see massive potential for Bali and the rest of Indonesia to be a major force in this regard.

Finally, water. It’s another big challenge. Last year Terje suggested the government, or those powers capable of doing so, should try to enforce hotels and housing projects to recirculate and reuse water. The question we want to ask now, is has this been done?

“Thats’s a very provocative question,” says Terje. “Because water is indeed a hugely critical issue, if not THE major issue. Both new and old hotels should be made to recycle. Today they’re not. And they don’t. But they must! Rivers could be used to prevent polluted water from reaching the sea, which would also clean the water systems all the way inland. This could be done, but it’s not being done. At least not fast enough. There are some companies we know of with good government contacts looking to explore opportunities in this field and we hope the future will bring some positive steps forward. But the truth is we need it done now!”

Many thanks for your time and insights Terje and I look forward to posting the fourth instalment of our series on Market Forces in Bali Real Estate.

Andy writes on a variety of topics related to property, real estate, the customer experience, mindset training and local/international trends for Seven Stones Indonesia. You can read some of his blogs here.

Seven Stones Indonesia is a property company headquartered in Bali, Indonesia, with a mission to help people who are interested in buying and selling residential and commercial real estate.

If you’re thinking about property, ROI, capital gains or lifestyle investments in Bali, Jakarta, Surabaya, and Indonesian’s Eastern Islands and need some friendly advice and guidance then why not email hello@sevenstonesindonesia.com or check out Seven Stones Website | Seven Stones Linkedin | Seven Stones Facebook

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.