Sat, 14 Mar 2009
From: JakChat
By Roy's Hair
$600m Lombok Resorts Scrapped

Citing governmental paralysis and hinting that too many officials had their hands out, Dubai’s state-owned Emaar Properties PJSC has cancelled its massive $600 million property project that was to turn the pristine island of Lombok into another Bali.

“We have closed our office in Jakarta starting Friday,” said Elly Savitri, Emmar Indonesia’s human resources manager. “Emaar has pulled out of its operations in Indonesia because the government cannot comply with the terms of the agreement with our joint venture company.

“There have been too many delays on the realization of the project and the company just could not wait any more.”

Elly also said Emaar had spent Rp 50 billion ($4.2 million) in consultancy fees on master plans.

Winarno Sujas, the Tourism Ministry’s director for businesses and investment, told the Jakarta Globe on Friday that Vice President Jusuf Kalla had summoned the related ministries for a meeting this coming Wednesday in a bid to save the project.

The cancellation of the project - announced with great fanfare in May 2007 by Kalla - is an enormous black eye for the Indonesian government and the local government of Lombok, West Nusa Tenggara Province.

“Indonesia is our 16th global market and the Lombok development will scale up our property portfolio to a wider Southeast Asian region,” Muhammad Ali Al Abbar, Emaar Properties chairman, said at the project signing.

The announcement of the failure of the project follows the recent pullout of the Saudi Binladin Group from a project to invest as much as $4.3 billion in developing rice crops in Merauke, Papua Province.

The joint venture between Emaar and the state-owned Bali Tourism Development Corp. envisioned development of 1,200 hectares along seven kilometers of natural beachfront that would have transformed central Lombok’s Kuta and Tanjung An beaches over the next 12 years into a world-class resort and residential community consisting of 10,000 luxury villas, eight hotels and two 18-hole golf courses.

Emaar’s Elly said the agreement stipulated that the government would provide a detailed master plan by last November to support infrastructure including an international airport, an access road to the property and finalizations of land acquisitions. The finalizations, however, never materialized.

A plethora of government agencies failed to complete their part of the bargain and asked for an extension until this month. When Indonesian officials asked for another extension until June, Emaar called off its investment.

“You understand the Indonesian government,” said an Emaar executive who asked not to be named, in a veiled reference to allegations of corruption in the local and central governments.

Sumaryanto Widayatin, a special adviser to the Public Works Ministry, blamed unprofessionalism for the tangled negotiations.

“I think it’s because the Ministry of Finance was worried about selling the land cheaply to Emaar,” he said, adding that the global economic crisis had also cut into the company’s liquidity.

He said every large project in this country attracted officials who had their hands out.

“Where in Indonesia do we not have the problem of corruption?” he asked.


Sat, 14 Mar 2009
From: JakChat
Comment by Dilli
Obviously nothing to do with Dubai's economic meltdown!


Sat, 14 Mar 2009
From: JakChat
Comment by Sammy Jankis
"I think it’s because the Ministry of Finance was worried about selling the land cheaply to Emaar" = "You're getting the land for a great price, so cough up the cigarette money for me and my associates"

"Where in Indonesia do we not have the problem of corruption?" = "Fuck it. Everyone does it so let's not fix the problem and we can all line our pockets."

Fucktards.


Sat, 14 Mar 2009
From: JakChat
Comment by Dilli
Great Headline but had to change it....


Sat, 14 Mar 2009
From: JakChat
Comment by Polisi Cepek
They have plenty of room to play in Puncak, the dirty devils. That was Kalla's idea too.


Sat, 14 Mar 2009
From: JakChat
Comment by Roy's Hair
Personally I'm glad as it's the most beautiful unspoilt area which would be ruined by vulgar resorts. That's $600,000,000 the govt. has just pissed up the wall though, all coz they couldn't be arsed to do any actual work.


Sat, 14 Mar 2009
From: JakChat
Comment by Roy's Hair
I guess it's curtains for that half built airport now...


Sat, 14 Mar 2009
From: JakChat
Comment by kenyeung
Originally Posted By: Polisi Cepek
They have plenty of room to play in Puncak, the dirty devils. That was Kalla's idea too.


Arab gentlemen were screwing whores in Puncak long before Kalla invited them to the area to buy short-term contract wives to improve the Indonesian gene pool and economy. Dirty devils? At least the women would receive a few million (after the brokers/pimps, village officials and imams take their cuts) and sometimes even a house. Much better than working the streets or being trafficked by fellow Indonesians to Batam brothels.


Sat, 14 Mar 2009
From: JakChat
Comment by Roy's Hair
Yes I used to run into these chaps down at the lovely Tiga Kuda discotheque in Cikini. Princes among men. Quite literally in some cases.


Sat, 14 Mar 2009
From: JakChat
Comment by kenyeung
Originally Posted By: Roy's Hair
Yes I used to run into these chaps down at the lovely Tiga Kuda discotheque in Cikini.


Used to? Have you resigned from the Kuda?


Sat, 14 Mar 2009
From: JakChat
Comment by Polisi Cepek
Originally Posted By: kenyeung
Originally Posted By: Polisi Cepek
They have plenty of room to play in Puncak, the dirty devils. That was Kalla's idea too.


Arab gentlemen were screwing whores in Puncak long before Kalla invited them to the area to buy short-term contract wives to improve the Indonesian gene pool and economy. Dirty devils? At least the women would receive a few million (after the brokers/pimps, village officials and imams take their cuts) and sometimes even a house. Much better than working the streets or being trafficked by fellow Indonesians to Batam brothels.


Well if you put it like that it all sounds kosher. I mean, Halal.


Sat, 14 Mar 2009
From: JakChat
Comment by fred
Originally Posted By: Polisi Cepek

Well if you put it like that it all sounds kosher. I mean, Halal.


Only haram if they get pissed after PC


Sat, 14 Mar 2009
From: JakChat
Comment by Balibob
Originally Posted By: Roy's Hair
I guess it's curtains for that half built airport now...


the airport never got off the ground either,


Sat, 14 Mar 2009
Bureaucratic Delays and Venal Officials Blamed for Demise of Transformational Tourism Project for Lombok Island.

(3/14/2009) The Jakarta Globe reports that a massive US$600 Million mega-resort planned for South Lombok is now in jeopardy.

The project of shopping, recreation areas, golf courses and luxurious hotels on a 1,200 hectare site is a "pet project" of Indonesia's Vice President, Jusuf Kalla, who personally invited Dubai's state-owned Emaar Properties to spearhead the investment.

Citing bureaucratic delays and an inability by the government to fulfill its obligations, Emaar announced that thy have closed their Jakarta office and are abandoning it plans for investing in Indonesia. Elly Savitri, a representative of Emaar said. "there have been too many delays on the realization of the project and the company just could not wait any more."

Jakarta Globe coverage suggests that greed on the part of government officials seeking hand-outs may have also played a role in a decision to cancel the project. Meanwhile, others suggest that the worsening global financial crisis may have adversely affected the liquidity of Emaar and diminished their keenness to pursue the Lombok investment.

Lombok is almost certain to be sent reeling by Emaar's decision to quit the project, seen as the catalyst for planned new roads and a new international airport in Lombok. The final project was targeted to host 10,000 luxury villas, eight hotels and two 18-hole golf courses.

Emaar told the press that they have already expended US$4.2 million in consultancy fees in connection with the Lombok project.

Jusuf Kalla's plans to woo Middle Eastern investors appears to be in serious strife. The withdrawal of Emaar from the US$600 million Lombok Project follows the recent pull out of the Saudi Arabian Bin Laden Group from a US$4.3 billion agricultural project planned for Papua.

Vice President Kalla has reportedly convened a special meeting of cabinet ministers in a last ditch effort to salvage the prestigious Lombok project.


Sun, 15 Mar 2009
From: JakChat
Comment by Piss Salon
I think two Jakchat members were heavily involved in breaking this story.


Sun, 15 Mar 2009
From: JakChat
Comment by Dilli
I have proof....


Sun, 15 Mar 2009
From: JakChat
Comment by Roy's Hair
lambert , always first with the hard hitting news...


Sun, 15 Mar 2009
From: JakChat
Comment by Jungle George
Wrong, the airport was started before Emaar entered the picture - and right now it is about half completed. I'd give it another 2 years before its close to being operational. But the terminal and runway are both seriously under construction.


Mon, 16 Mar 2009
From: JakChat
Comment by Roy's Hair
Well we'll see. It looked to be well under construction when I passed it at Xmas. However, economic depression and all that. Work may well grind to a halt. Not much point building it if the Ay-rab resorts don't materialise is there?


Mon, 16 Mar 2009
From: JakChat
Comment by kenyeung
Originally Posted By: Jungle George
Wrong, the airport was started before Emaar entered the picture


The whole Emaar development area is just a takeover of the area previously held by Bambang Tri's LTDC, which had been doing its land grabbing and development planning since before the new airport was started.


Mon, 16 Mar 2009
From: JakChat
Comment by Dontpanic
To be known as the "Bridge to nowhere" International airport, conveniently located 2 hours away from existing tourism infrastructure in Senggigi?
The commissions for the boys on this project must have been really juicy?
In terms of ROI, wouldn't the completion of the Jakarta our ring road, now about 20 years late, have been a more sensible option?


Mon, 16 Mar 2009
From: JakChat
Comment by kenyeung
Most of the funding (about 75%) for the Lombok International Airport is (supposed to be) coming from Angkasa Pura (the state-owned firm that runs airports) and the rest from the NTB provincial govt and Central Lombok regional govt.


Mon, 16 Mar 2009
From: JakChat
Comment by Dontpanic
I rest my case.


Mon, 16 Mar 2009
From: JakChat
Comment by Piss Salon
Originally Posted By: Roy's Hair
lambert , always first with the hard hitting news...


I'm claiming this one.


Mon, 16 Mar 2009
From: JakChat
Comment by Piss Salon


Janeman Latul
Emaar: Just the Start?

The announcement that Dubai’s state-owned Emaar Properties PJSC has pulled the plug on a $600 million property project on Lombok Island may be a signal of worse to come, business players and analysts said on Sunday .

It has, however, also emerged that Emaar is facing serious financial difficulties at home and is hurriedly canceling projects around the globe.

Speaking on Sunday about Emaar’s allegations of government ineptitude, Purbaya Yudi Sadewa of the state-owned Danareksa Research Institute said: “It’s a signal for foreign investors to be very cautious about investing here. It will make people more reluctant to press ahead with their projects, and maybe even convince some to pull out.”

Emaar canceled the joint venture with state-owned Bali Tourism Development Corp. after it claimed the government appeared incapable of fulfilling a number of preconditions for the project, particularly regarding land acquisition.

It’s a signal for foreign investors to be cautious about investing here’

Purbaya Yudi Sadewa,
Danareksa Research Institute

Emaar also hinted that too many officials were looking for kickbacks and bribes.

Meanwhile, it turns out that Emaar is facing serious financial difficulties amid the global financial crisis and is bailing out of projects as quickly as it can.

The company suffered a 2008 fourth-quarter loss of $481.9 million, and its stock has fallen from a high of 11.90 United Arab Emirates dirhams ($3.24) in April last year to just 2.05 dirhams. It was reported from Dubai on Thursday that the company had canceled its annual general meeting without giving a reason, and investors have been petitioning the company to cancel further projects given market uncertainty. To make matters worse, the company also recently sought bankruptcy protection for its US unit.

The Lombok project envisioned a development covering 1,200 hectares on the resort island.

Khaled M. Al-Aboodi of the Islamic Corporation for the Development of the Private Sector, an affiliate of the Islamic Development Bank Group, had previously warned about the importance of secure land titles to Middle Eastern investors.

“For investors who want to invest in property, land ownership for foreigners is important,” he said. “Investors are only interested in becoming involved in projects which they can present to international buyers. Currently, If I want to do a huge development, all I can count on is demand from buyers on the Indonesian side.”

Dian Putra of BCI Asia, a multinational consulting firm, said he was very disappointed with the cancellation, especially given the allegations of corruption.

“Corruption in international megaprojects is commonplace in our country, especially on the part of local government officials,” he said. “Middle Eastern investors will have a problem with that.”


Mon, 16 Mar 2009
From: JakChat
Comment by Dontpanic
The Jakarta Post doesn't seem to covering any of this?


Mon, 16 Mar 2009
From: JakChat
Comment by Piss Salon
It's a cluster scoop (like a cluster fuck). You get hit on a Saturday when it is difficult to chase up stories and Sunday when it's impossible. By the time Monday rolls around you may considering writing something for Tuesday. Or you could just ignore the entire thing altogether.


Mon, 16 Mar 2009
From: JakChat
Comment by Dontpanic
Nice one. An important story wihich our "Elites" will now try to explain away as being due to Emaars own financial problems? In fact that's already starting I see. After all, it never is the fault of anyone in Indonesia, is it!


Mon, 16 Mar 2009
From: JakChat
Comment by Dontpanic
“Corruption in international megaprojects is commonplace in our country, especially on the part of local government officials,” he said. “Middle Eastern investors will have a problem with that.”

Although that wasn't BAE's experience in Saudi?


Mon, 16 Mar 2009
From: JakChat
Comment by Jungle George
Virtually all of this airport project has been run out of Jakarta. The NTB provincial govt and Central Lombok regency are really small fish. I don't doubt that they had their hand out for both the airport and the Emaar project, but they don't hold much power on these big projects. They are poor as church mice.

I have to laugh when I hear Emaar is accusing Indonesia of corruption. That's the pot calling the kettle black. I spent some time in that part of the world and kick-back money (called bakshish) is as common as uang merokok is in Indonesia. I also can't imagine how they spent $4.2 on consultants for the project. I worked on projects like this in my former life as a civil engineer. Honestly, a 1,200 hectar (3000 acres) project is not that complex. Planned resorts of this size are not uncommon in California and Hawaii.

It really sounds to me like the money flowed like water when oil was almost $150 a barrel. Now that oil is back down to $40 a barrel, Emaar's money train just got derailed.

I also do not know why Jakarta is pushing forward on the airport. It's been a project in the planning stage for well over 15 years. I don't understand why they would want to put an international airport in the middle of a sleepy island (other than the land has been bought and paid for). In terms of land size, it is second only to Heathrow! That said, in the future, the islands of Sulawesi, Sumbawa, Flores, Sumba and others are attracting more attention on the discussion boards.

It would really be interesting to see if SBY doesn't get re-elected. I think priorities would change fast!


Wed, 18 Mar 2009
From: JakChat
Comment by KuKuKaChu
From The Jakarta Globe

Government Insists Lombok Deal Not Dead

by Janeman Latul

High-ranking Indonesian government officials and Emaar International PJSC have denied that the Dubai-based development company has killed its massive $600 million project to turn a major portion of Lombok Island into another Bali.

“The government of Indonesia and Emaar have extended a delayed joint venture agreement to get the project underway for another three months,” an Emaar spokesman said in an email from Dubai. The spokesman asked that his name not be used.

“Emaar has met its contractual obligations and the Indonesia Investment Coordinating Board [BKPM] has now asked Emaar for an extension of time to meet their obligations under the joint venture agreement,” the email said.

Emaar closed its Jakarta offices on Friday and will coordinate further activities from Dubai, the spokesman said.

“Initially, Emaar set up its Jakarta office to establish a ground presence to drive the project forward and meet the JV obligations, leading to the finalization of negotiations with BKPM.”

However, Emaar does appear to be facing serious financial difficulties amid the global financial crisis, and is closing projects across the globe. The company suffered a 2008 fourth-quarter loss of $481.9 million, and its share price has fallen dramatically.

It was also reported from Dubai on Thursday that the company canceled its annual general meeting without giving a reason

Alwi Shihab, the presidential envoy to the Middle East region, told the Jakarta Globe by telephone from Taipei that the government received verbal confirmation on Friday from Emaar’s chairman, Muhammad Alabbar, that the project would be extended for another three months, although no written confirmation had yet been received.

“We could not get confirmation for the three-month extension until last Friday, when the UAE deputy prime minister and UAE Chamber of Commerce chairman met with the Indonesian task force,” Shihab said. “The chairman called Emaar’s chairman and asked him about the project. According to him, they agreed to extend the time for another three months,” he said.

Winarno Sujas, the Tourism Ministry’s director for business and investment, told the Jakarta Globe on Friday that Vice President Jusuf Kalla would summon related ministries for a meeting today in a bid to save the project.



Correction

On the Monday, March 16 edition of the Jakarta Globe, we reported that Dubai state-owned Emaar Properties PJSC had “announced” it was canceling a $600 million plan to develop a stretch of beach on the island of Lombok into a resort.

Later in the article, we attributed comments about the company’s problems dealing with Indonesian officials to Emaar Indonesia.

None of these comments came from an official spokesperson for the company.

They were all made by Emaar officials.

Neither Emaar Indonesia nor its parent company have made an announcement that they are quitting Indonesia.

We regret the error.


Wed, 18 Mar 2009
From: JakChat
Comment by chewwyUK
What do you think the chances of anything being sorted out in the next three months are? Be interesting to see what kalla will do to "save the project"


Wed, 18 Mar 2009
From: JakChat
Comment by Dontpanic
Once upon atime, there was a big daddy bear called Soeharto. And he divided the country amongst his baby bears, Bambang had Lombok and Tommy had Bali. And then daddy bear died and the baby bears had to get their money to Switzerland quick. So now they could only use other nominee bears to do things, and as usual allow the local bears to have some honey and milk too. But the other bears got too greedy, as awas usual in daddy bear's kingdom. Also a big arab bear who the baby bears and their nominees had been expecting to rip-off also said "Fuck you this is my honey" and they said, no I'm a nationalist. End of story.

Sorry for the long explanation.



Wed, 18 Mar 2009
From: JakChat
Comment by Piss Salon
They've bailed. Alwi Shihab is scrambling to cover his arse.

That story certainly caused one or two ripples.


Wed, 18 Mar 2009
From: JakChat
Comment by Dontpanic
WTF was he doing in Taiwan when is supposed to be responsible for the ME? Shopping with Mega?


Wed, 18 Mar 2009
From: JakChat
Comment by Roy's Hair
Originally Posted By: KuKuKaChu

Neither Emaar Indonesia nor its parent company have made an announcement that they are quitting Indonesia.

We regret the error.


lambert fail?


Wed, 18 Mar 2009
From: JakChat
Comment by Roy's Hair
Originally Posted By: Piss Salon
Originally Posted By: Roy's Hair
lambert , always first with the hard hitting news...


I'm claiming this one.


Ah yes OK then. salon fail


Wed, 18 Mar 2009
From: JakChat
Comment by Polisi Cepek
Originally Posted By: Piss Salon
They've bailed. Alwi Shihab is scrambling to cover his arse.

That story certainly caused one or two ripples.


It looks like they complained to the Globe, eh? Did anyone's globes get clamped in the vice as a result?


Wed, 18 Mar 2009
From: JakChat
Comment by Dontpanic
But middle bear's bed was perfect. There's a lot of porrige? Did they threaten to sue?
I think TA is used to getting his globes out of the way?


Wed, 18 Mar 2009
From: JakChat
Comment by chewwyUK
Actually It started with salon and then lambert ran with it the next day (i think). The correction was in the business section


Wed, 18 Mar 2009
From: JakChat
Comment by chewwyUK
Hmmm -- lets try something:

lambertsalon


Wed, 18 Mar 2009
From: JakChat
Comment by chewwyUK
bugger .. was hoping salon would end up giving lambert a golden shower


Wed, 18 Mar 2009
From: JakChat
Comment by Piss Salon
pisslambert


Wed, 18 Mar 2009
From: JakChat
Comment by Piss Salon
Why am I laughing so hard?


Wed, 18 Mar 2009
From: JakChat
Comment by kenyeung
Excuse I.

______ salon_____________________________
lambert




Wed, 18 Mar 2009
From: JakChat
Comment by chewwyUK
Ken .. You are da man!!


Wed, 18 Mar 2009
From: JakChat
Comment by Piss Salon
For everything else there's Mastercard.


Wed, 18 Mar 2009
From: JakChat
Comment by Roy's Hair
piss lambert salon


Thu, 19 Mar 2009
From: JakChat
Comment by chewwyUK

______ salon_____________________________
....... dilli




Thu, 19 Mar 2009
From: JakChat
Comment by chewwyUK
______ salon_____________________________
gaymarmz



Thu, 19 Mar 2009
From: JakChat
Comment by Piss Salon
pissdilli


Fri, 20 Mar 2009
From: JakChat
Comment by Jungle George
Oh, I see, the Jakarta Globe make a mistake and got all the facts wrong about corruption and ineptness on the part of the Jakarta government. Now I understand. And Emaar didn't make any real announcement about pulling out of the Lombok project and it has nothing to do with the fact that Emaar is deep in debt because the price of oil fell out of bed.

In reality, they just want to take a 3 month breather from all the hard work they have been doing on this project. Now I understand, it's all so clear and obvious.


Fri, 20 Mar 2009
From: JakChat
Comment by chewwyUK
hey ... where did the golden showers go???


Fri, 20 Mar 2009
From: JakChat
Comment by Piss Salon
The office is bolted shut.


Fri, 20 Mar 2009
From: JakChat
Comment by KuKuKaChu
Originally Posted By: chewwyUK
hey ... where did the golden showers go???

they where moved to a better place smile


Mon, 30 Mar 2009
From: JakChat
Comment by Jungle George
Hey, I can't figure out how to post a new thread. However, here is some more "always trustworthy" news direct from the mouth of the VP that fits into this subject. We call this a "pyramid project" because it uses ancient technology to build and take a lifetime to complete. The only way this airport will be operational before 2013 is through divine inspiration.

Quote:
Monday, March 30, 2009 4:12 PM

VP Kalla: Lombok Int'l airport should aim to open in 2010

The Jakarta Post , Jakarta | Sun, 03/29/2009 4:30 PM | National

The construction of Lombok's international airport in Tana Awu village, Central Lombok, is hoped to be complete by October this year, state officials said on Sunday.

In a coordinating meeting between Vice President Jusuf Kalla, Transportation Minister Jusman Syafeii Djamal and State Minister of State Enterprises Sofyan Djalil, in Mataram,
Kalla emphasized the importance of the rapid completion of the project in order to support the Dubai Emaar Properties investment project on the island.

It is hoped the completion of the airport would go in hand with the completion of the planned tourist resort.

The airport project, which so far has cost Rp 802 billion, is expected to be complete by the end of 2009, and open for operation in 2010.

The airport runway infrastructure was around 70 percent complete, while 65 percent of the passenger terminal and parking area had yet to be completed, laugh Kompas.com reported. (amr)



Mon, 30 Mar 2009
From: JakChat
Comment by Piss Salon
I see there was a story from Antara saying the project was back up and running, though the story failed to mention Emaar even once. Nor did it say where the funding for the project was coming from.


Mon, 30 Mar 2009
From: JakChat
Comment by Marmalade
Who cares? I found Lombok pleasant but dull. Now the Gili's...


Tue, 31 Mar 2009
From: JakChat
Comment by Jungle George
Originally Posted By: Marmalade
Who cares? I found Lombok pleasant but dull. Now the Gili's...


You may find it boring, but with an airport the size of Heathrow under construction, and the on-again, off-again resort project whose size would rival any resort in the world - Lombok is hardly boring from an business & investment point of view.



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