Minister: Foreigners Are Not Allowed to Own Islands in Indonesia

iNews.id are reporting on comments made by the Minister of Home Affairs (Mendagri), Tito Karnavian, on the recent story doing the rounds in both local and international news that more than 100 islands in North Maluku were being auctioned by Sotheby’s.

Those news reports did say, however, that the highest bidder will be buying development rights, as private ownership of Indonesian islands is illegal, which has been confirmed by Minister Tito, who emphasized that Indonesian law does not allow foreigners to own islands in Indonesia. They “cannot be automatically (owned) by foreigners (through an auction), our law does not allow foreigners to own islands in Indonesia,” he said.

According to him, PT LII (Leadership Islands Indonesia) as the developer of the Widi Islands signed a memorandum of understanding (MoU) with the Regional Government of North Maluku to carry out the development of Eco Tourism in 2015, but until now no developments have taken place, report iNews.id

The Minister of Home Affairs said that they may need to extend their MoU with the provincial district government and must seek approval from the central government, especially from KLH (Ministry of Environment and Forestry), and KKP (Ministry of Maritime Affairs and Fisheries.)

Jodi Mahardi, a spokesman for the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan, also gave an explanation saying the private sector only has permits to manage the islands. “The management permit was given to PT Leadership Islands Indonesia (LII) a long time ago, but reportedly until now there has been no realization of the construction until news of the auction emerged,” he said in a statement.

Joni emphasized that, even though PT LII already have a permit, the Indonesian government has laws and regulations which state that small islands cannot be fully owned by any party, say iNews.id 

“Small islands can only be managed by certain private individuals with certain maximum area limits,” said Jodi.  He further said, if a small island management permit has been obtained by a company/ national legal subject, then the investment cooperation process with foreign parties must be carried out in accordance with statutory provisions. “For parties interested in managing, not owning, small island areas, they must obtain permission from the government,” he said.  If there is a violation of statutory provisions in managing the island, he said, sanctions can be imposed on that party.



Source: iNewsd.id

Latest Article
Christmas and New Year Holidays, KAI Prepares 44.7 Million Tickets
PT Kereta Api Indonesia Group has allocated 44,754,280 train tickets to accommodate the surge in passengers...
Ministry Urges Tourism Collaboration for Year-end Holidays
Antara News is reporting that Indonesia’s Tourism Minister, Widiyanti Putri Wardhana, has called for...
AirAsia to Reduce Ticket Prices for Christmas and New Year
In a written statement released on Sunday (1/12/24,) AirAsia’s CEO, Veranita Yosephine announced...
Indonesia Game Festival 2024 Powers Economic Growth
  The Indonesia Game Festival 2024 is set to energize the nation’s gaming industry while driving...
President: Education Is Government's Top Priority
According to the website of The President of The Republic of Indonesia, President Prabowo Subianto, who...

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.

Contact Our Consultants

[wpforms id=”43785″]

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.