Sun, 20 Apr 2008
Mataram (ANTARA News) - Vice President Jusuf Kalla called on West Nusatenggara (NTB) government to immediately settle land clearence in the ex-location of LTDC in Central Lombok District.

"By doing so, it is expected that Emaar Properties, an investor from Dubai, Arab Emirate Union, will immediately invest in this region," NTB Governor Drs H Alu Serinata said during the coordination meeting on poverty problem, here, on Saturday.

The vice president also hoped that the 75 hectares which had yet to be cleared should not come up as the cause of the problem which may discourage Emaar to invest in this province, while the area already cleared was about 1,125 hectares.

The local government will immediately pay the owners of 17 ha land, so that such unexpected things will not happen in the future, he said.

Earlier, Emaar asked for the construction of three roads leading to the location of the international airport of Lombok and the 30,000 cubic meter supply of clean waters per day.

NTB government had reportedly expressed their readiness to meet the demand, as it was one of the efforts to improve the people`s welfare.

The government`s commitment to developing the ex-location of the Lombok Tourism Development Corporation (LTCD) in the southern area of Central Lombok district is praiseable.

The central government in developing the ex LTDC location currently under the management of PT. Asset Management Company (PAA) often held such meeting.

"In fact, in developing the ex-LTDC location, the management is then transferred to PT. Bali Tourism Development Corporation (BTDC)," he said.

Sun, 20 Apr 2008
From: JakChat
Comment by viperaberushitam
Why does something smell in this whole thing? What tells me that Emaar Proprties backs out and some ass, I mean associate, will come in and offer 10 cents on the Dollar to buy it all and start a Palm Oil plantation or some other crap...........

Sun, 20 Apr 2008
From: JakChat
Comment by KuKuKaChu
dunno. but it smells like trouble.

Sun, 20 Apr 2008
From: JakChat
Comment by kenyeung
LTDC has been unpopular for a while.

Beaches and broken bones
Inside Indonesia
July 1996
An exploding tourist industry on Lombok's beaches breaks the lives of villagers. IRIP NEWS SERVICE reports.
In the pre-dawn of March 5th 1996 some 24 truckloads of police and troops descended on the small farming village of Rowok near the south coast of Lombok. When they had finished their work all the houses and other buildings in the village had been destroyed. Most of its inhabitants were trucked away to their 'traditional' villages nearby.

Over the next week or so all their possessions were confiscated or stolen by the government and its agents. Rowok's more than 300 people are now refugees in their own country. Some are sheltering in the provincial capital Mataram. All are dependent on charity for their existence. They told the author all they have left is the clothes they were wearing when the troops arrived.

Court order
At midnight on March 4th their time had expired. Their eviction was based on a court order obtained by the regency (kabupaten). This was the end of one phase of a struggle to resist eviction that had been running since 1994. During the forcible eviction, more than 36 villagers were seriously injured by the police and soldiers. Several had multiple fractures of major bones. Many had visible scalp wounds and other injuries.

In March and April there were protests by university students in Lombok and Bali, and the national government began an 'unofficial' investigation into the events leading up to the morning of March 5th.

The farming people of Rowok were evicted because they refused to vacate their land and accept the low payments offered by the speculator/ developer PT Sinar Rowok Indah. In contrast, government employees in the village were paid close to market prices for their land. Since 1994, assisted by a small group of local lawyers, the Rowok farmers have used the limited legal means available to defend their right to the land or, if forced to leave, adequate payment.

Complicating the issue is the land titling system of Indonesia. The people of Rowok do not have formal title to their land, even though the National Land Agency (BPN) surveyed it in 1990 so titles could be issued. This makes it unclear whether they can sell (if they have title) or only receive compensation (if the land still formally belongs to the state). If they own the land then the developer has to negotiate a price directly with them. Such negotiations have as yet not been started, let alone completed.

The two main shareholders in PT Sinar Rowok Indah are Franky Lesmana (one of President Suharto's relatives, with 60%) and Andri Setiawan (son of Governor Warsito of West Nusa Tenggara, with 10%). There are four others.

Space forbids a detailed explanation of the machinations used by PT Rowok to acquire the land at the lowest possible cost, and to ensure the inhabitants were evicted with the least possible fuss. According to local legal experts, these machinations were facilitated by government officials. Suffice it to note that, given the company's connections, many forms of technical, administrative and legal assistance were forthcoming from all levels of the civil and military structure in Lombok.

Lombok is slated for rapid tourism development. Rowok may be among the first of many similar clashes between Sasak farming communities and tourist development speculators. Few Sasak speak Indonesian or have completed primary school, while the speculators are backed by the full force of the judiciary, police and military. Many of the speculators are connected to the presidential family or to other senior government officials. Hence the process leading to eviction usually occurs outside the law, and protests and investigations are stifled.

What may surprise some readers is that so many people - whose duty as government employees is to improve local welfare - would cooperate over such an extended period (1990-96) to help an 'outside' company defraud local people. It demonstrates how the current regime furthers its own economic interests - which might be seen as long-term planning to further defraud the already poor.

Land for free
In Indonesia, if you have the right connections and sufficient money (they often go together) you can acquire land for free - well, at least at bargain basement prices - in a nation where land prices are higher in absolute terms than in Australia. How is this possible?

All you need is an 'izin lokasi' or 'izin prinsip' (a location permit or 'in principle' approval). This gives you the sole right to purchase land within a designated area. The current inhabitants have little if any chance to challenge what is planned, or receive fair compensation or assistance in relocation.

The process is made more invidious as the izin may be issued secretly by the local office of BPN. Furthermore, third parties are often used to covertly purchase land cheaply before local people become aware of what is occurring. This is exactly what happened at Rowok.

When in addition the local government designates an area for 'development' - shopping malls, factories, high rise apartments, roads or tourism - these izin become an unstoppable force. All the more so as opposing 'development' in Indonesia is regarded as subversive, and too often attracts heavy prison sentences.

Lombok's Kuta
Among these izin lokasi in Lombok, the largest are found in Tourist Development Areas (TDA) just east of Rowok. The area centres on the coastal village of Kuta (not to be confused with the Kuta in Bali!). With its beautiful bays and white coral beaches, this area has slowly developed basic accommodation and tourist facilities over the last 20 years.

One developer, Lombok Tourist Development Company (LTDC), has been given an izin lokasi covering 1,250 ha. This takes in some five bays and the hills behind them. Originally they only had about 650 ha, but this was increased in May 1995. Currently, LTDC is trying to get rid of the local people, who make a living from farming, fishing and low-cost tourism. Unsurprisingly, they are unwilling to move. The prices being offered for their land are far too low, and they want access to the economic opportunities they hope tourism will bring.

LTDC's aim seems to be to on-sell the land to hotel developers at much higher prices than they paid. Along the way they may get some shares (say 10-15%) in the joint venture to build the resort.

To minimise its costs, LTDC is pressuring the provincial government to pay for the major investments in water supply, roads and electricity that construction of some 18 hotels, facilities and associated golf courses will require. If they can do this they will get a much higher price for the land without having to invest any additional funds of their own. Naturally this means much higher profits.

Local officials are trying to resist this pressure. The government would have to borrow money with no clear means of repaying it. But they are faced with an almost insurmountable problem: LTDC is 60% owned by PT Bimantara, which is owned by Bambang Suharto. Clearly this family connection makes things very easy for LTDC... and very difficult for local people.

The next Bali?
Rowok is not the first. Many similar expropriations occur throughout Indonesia in the name of 'development' - especially urban and tourist development. In 1994 there were protests as the inhabitants and visitors on Gili Trawangan island - off northwest Lombok - were violently evicted by government forces. Here too, a well-connected 'outsider' used their position to dispossess locals who had opened low-cost tourist facilities.

The developer aimed to replace low-cost tourism on Gili Trawangan (with a capacity in the hundreds) with high-cost four and five star tourist hotels capable of accommodating thousands. Recently, negotiations between the local people and the government resulted in the locals being paid fairly substantial compensation.

The government has designated nine TDA on Lombok. Six of these are on the coast, and each covers tens of square kilometres. In Bali TDA are clearly defined according to administrative area. But the TDA on Lombok only exist as circles on a map, centred on a town. Each takes in a number of rural communities (see map). Within each area 'tourism is king'.

Developers are assisted in acquiring land. The government will make an extra effort to provide the needed roads, water, communication and electricity supply. Experience in Bali and Lombok shows the government does little to ensure local people will benefit directly, e.g. by helping them start new businesses or equipping them for jobs in tourism. Nor does it protect the environment.

Bays and reefs
In comparison with Bali, most of Lombok's inland landscapes are fairly mundane. But its southern and southwestern coastlines are extra-ordinarily beautiful. These are the areas designated for tourist development. The southern coast is made up of deep bays, flanked by coral reefs. The bays open onto coastal valleys, backed by a landscape of rolling green hills. The southwestern coast too has white beaches and coral reefs - but the range is more limited and less spectacular.

These beautiful landscapes are not unoccupied. On the southern coasts the area was opened for dryland farming over the last 30 years. These families' houses and livelihoods are now threatened by tourist development. On the southwestern coast it is mainly poor fishing families that will be forced back from the coastline for tourism.

Inland from the south coast, hundreds of families are being evicted from 800 ha of farming land for a new international airport. Planned to become operational in 2004, the airport is being built explicitly to facilitate access to new tourist resorts.

More to come
An indication of the scale of the potential problem on Lombok is that lawyers and local people were able to identify from memory another 15 locations where land disputes related to tourist development are in the making. They cover approximately 3,900 ha, and some 4,500 families (about 25,000 people) live and make a living in them.

These figures cover parts of south, southwest and southeast Lombok, but do not include communities within TDA in the east, north and northeast. For many of these people, repetitions of the violence seen in Rowok, as well as wholly inadequate compensation to replace the land and possessions they lose, are a distinct possibility.

Unlike Bali, where there was an 'organic' and gradual expansion of tourism in the 1970s and 1980s, the growth of tourism in Lombok is likely to be explosive and mostly controlled by large Jakarta-based corporations acting in concert with global hotel chains. Thus, what is happening in Rowok is probably the beginning of a long and painful process for the farmers and fisherfolk who occupy land the bureaucracy and its elite clients have decided to turn into tourist enclaves.

Sun, 20 Apr 2008
From: JakChat
Comment by kenyeung
And the Arabs signed the takeover deal in Kalla's office:

Lombok Post, May 01 2007
The Dubai investor is really serious in developing the LTDC former land in Central Lombok. This is proved by the assignment of MoU with PT.EMAAR Properties LLC (Dubai, UEA) last Monday. The taking-over of tourism in South Coast of Central Lombok was signed by Muhammad Ali Albar (Dubai UEA) in Vice President, Yusuf Kalla’s office in Jakarta.

EMAAR property is one of the biggest company groups who invest in properties and financial in some foreign countries like; America, Europe and Asia. EMAAR is also one of the world biggest companies who own some international class hotel businesses. The investment on the LTDC former land is estimated to cost up to 600 to 700 million dollars. It has been planned that the realization of this project will be done in parallel with Lombok International Airport.

Sun, 20 Apr 2008
From: JakChat
Comment by Dilli
As I have stated earlier, anything with Mohammed Alabbar at the helm is dodgy to say the least.

When Emaar was originally floated they were grossly oversuscribed and the potential investors who were not succesful had to wait a long long time to get their money back.

In addittion, Mohammed went against UAE policy when he offered non UAE citizens the possibility of owning thier own property in the Emirates. The Abu Dhabi royal family went so far as to bar Mr Alabbar from entering the emirate of Abu Dhabi and it took many years before some form off settlement was reached.

The houses which Emaar subsequently built and sold have been full of problems and their reputation in Dubai is not the best.

Sun, 20 Apr 2008
From: JakChat
Comment by kenyeung
 Originally Posted By: viperaberushitam
What tells me that Emaar Proprties backs out and some ass, I mean associate, will come in and offer 10 cents on the Dollar to buy it all and start a Palm Oil plantation or some other crap...........

Seems like Emaar are serious about building hotels there:

Emaar accelerates in Lombok
by Asia Pulse April 2007

The biggest state-owned company in Dubai, Emaar Properties LLC Dubai, has been speeding up the realization of its investment in a US$600-700 million integrated tourist zone in the Indonesian province of Central Lombok, West Nusa Tenggara.

"Emaar is speeding up the drawing up of a master plan of the project," said M. Abdul, a member of the Vice Presidential expert staff, when presiding over a meeting on preparations of infrastructure facilities for investment by Emaar Properties LLC Dubai, in Mataram on Thursday.

The former commissioner of state oil and gas company PT Pertamina said that he had recently established coordination with the management of Emaar in Dubai, and said that the making
of the master plan on the integrated tourist estate in Lombok Island was being intensified.

The master plan was originally scheduled for completion in six months following the signing of a memorandum of understanding (MoU) on cooperation between the Indonesian government, represented by PT Bali Tourism Development Coorporation (BTDC) and the Dubai administration represented by Emaar Properties LLC, in Dubai on March 19 this year.

"Actually the master plan was supposed to be completed in October 2008, but Emaar has shortened the period to August 2008, while the feasibility study of the investment would be completed two months later, so that not later than January 2009 actual construction of the project could be started," he said.

Abdul also said that the Indonesian government has to take quick measures in preparing the support infrastructure facilities.

Emaar Properties LLC, the richest state enterprise in the Middle East, has expressed its seriousness in making an investment in West Nusa Tenggara, so that all the relevant parties are expected to give their concrete support.

In the preliminary stage of the construction work, Emaar Properties planned to build two luxury hotels, Georgio Armani and Ritz, a condominium and a golf course on 450 hectares of the total of 1,250 hectares of land being developed.

"The President and Vice President have asked us to prepare the process of the investment of trillions of rupiah to the best of our ability.

"All the relevant agencies and institutions need to act quickly, and all the work supporting the investment need to be carried out in parallel," he said.

He asked the relevant sides like PT Angkasa Pura I, PT PLN, PT Pertamina, the Public Works Ministry, and the West Nusa Tenggara provincial administration to immediately take concrete

Various matters relating to the building of a Lombok international airport which is relatively near to the site of the integrated tourist estate in Central Lombok, need to be settled immediately.

Power supply, clean water and roads leading to the integrated tourist zone is a must.

Aircraft fuel supplies in the Lombok international airport also needs to be well-planned on the basis of underground pipelines because the transportation of aircraft fuel by fuel tank lorries has become outdated.

The West Nusa Tenggara provincial administration as well as the Central Lombok regency administration are required to settle any opposition to land clearance operations as s quickly
as possible.

The MoU includes the settlement of problems in land procurement in six months at the latest following the signing of the cooperation agreement.

Emaar Properties LLC planned to build the integrated tourist estate on 1,250 hectares of land in Central Lombok regency, 1,175 hectares of which had already been cleared and certified, while 74 hectares have yet to be settled.

The land of the project once belonged to the Lombok Tourism Development Corporation (LTDC) now controlled by asset management company PT PPA because LTDC had collapsed, and later
handed over to PT BTDC.

"We will send another special team for more detailed discussions of obstacles to the ways and means supporting the Emaar Properties LLC´s investment," Abdul said.

Sun, 20 Apr 2008
From: JakChat
Comment by Dilli
Dodgy as fuck!

Sun, 20 Apr 2008
From: JakChat
Comment by viperaberushitam
 Originally Posted By: KuKuKaChu
dunno. but it smells like trouble.

Well the VICE President is involved, maybe he is thinking about that cracker of an idea he had about the Puncak ladies of road side assistance and the visiting Arabs getting married and buying the girls houses. How ever he goes, he should do like all good JakChat Posters and proceed..........

Sun, 20 Apr 2008
From: JakChat
Comment by kenyeung
Plenty of government officials in support of the project:

Middle East Investor to resume Lombok Tourism Resort Development
Source: Tuti Sunario for Indonesia Digest - undated
The Lombok Tourism Development Center (LTDC) has attracted investors from the Middle East to develop the area into an integrated tourism resort akin to the Nusa Dua in Bali, reported Culture and Tourism Minister, Jero Wacik, after meeting VP Jusuf Kalla. The meeting was also attended by Minister of Finance Sri Mulyani, State-Enterprises Minister, Sugiharto and Transportation Minister Hatta Rajasa. The LTDC development had remained idle since Asia's financial crisis in 1997. As soon as Lombok's new international airport is to become operational starting 2009, the Middle East investors will resume development of hotels, golf courses and other amenities in the area with investments of around Rp. 2 trillion, outside of land costs, said Jero Wacik. They are also keen to promote the Lombok resort working in conjunction with Emirates Airlines to attract visitors from the Middle East, reports Bisnis Indonesia.

The last sentence of this:

PT EMAAR contract runs for 80 years.
Article from the Lombok Post, July 25, 2007
Mataram - PT. EMAAR investment on the LTDC former land, Central Lombok enters a new stage. Both parties (PT.EMAAR and Province Government) are agreed with the terms and conditions proposed earlier. Public Relation Division Chief of NTB province Government, Manggaukang Rabba explained that the agreement between the two parties have been put in a MoU between NTB Governor, HL Serinata with the PPA (State-owned Asset Managerial Company) and PT.EMAAR

Manggaukang stated “Both parties have agreed with the requirements done before”. He explained that the agreement was signed in Culture and Tourism Ministry office in Jakarta. Culture and Tourism Minister, Jero wacik and an Indonesian representative for Middle East, Alwi Shihab, witnessed the signing of the agreement.

One of the important agreements that had been taken was dealing with the contract period of EMAAR’s investment, which will take 80 years. After taking the agreement, PT EMAAR was then preparing for the investment. As a start, PT.EMAAR has placed his staffs in a new office in Jakarta. Meanwhile, the Governor of NTB and the Regent of Central Lombok have been called by the Vice President, Jusuf Kalla. The call aimed to ask the two leaders to secure the investment worth 5 trillion on the LTDC former land and to anticipate and counter the miss-leading information and news about the project.

Manggaukang added that the two parties’ target is expected to be achieved in 2009. It also means that the initial project is expected to be done in parallel along with the new Lombok international airport construction. Other supporting infrastructures are also expected to be accomplished soon. Those infrastructures include the electricity of 40.000 megawatt and the access road from the new international airport to the LTDC land that should be widened. The Vice President had also asked the runway in the airport to be lengthen. “The Vice President asked PT. Angkasa Pura to lengthen the runway from 2.500 meter into 3.000 meter in order to accommodate the big planes like; airbus”, he further said. It gets along well with the EMAAR’s plan to bring many tourists from the Middle East. He then stated that, according to a research, Lombok is the most suitable tourism area for Middle East tourists and for that purpose, a huge mosque will be built there”.

Sun, 20 Apr 2008
From: JakChat
Comment by viperaberushitam
Great maybe they can build their own version of the VICE president's Puncak dream there, Arabs only need apply for admittance. They will have a short statue (but real to life height) of the man himself where a little speaker plays a version where he expounds and expands on the "I had a Puncak Dream" speech (Martin Luther King Style of course)..............It brings a tear to my eye and joy to my heart

Sun, 20 Apr 2008
From: JakChat
Comment by kenyeung
 Originally Posted By: ANTARA News
The government`s commitment to developing the ex-location of the Lombok Tourism Development Corporation (LTCD) in the southern area of Central Lombok district is praiseable.

Seems Antara is not the only one being given envelopes to write gushing endorsements of the planned transformation of Lombok's pleasant southern beach into a playground for the rich.

Lombok lifted by Emaar project
Article from the Internet by Denis Gilfeather
July - 2007

Twenty years ago astute developers were snapping up prime real estate in Lombok, which was then being hailed as the new Bali. Situated just east of the ‘Island of Gods’ and separated by the Lombok Straits, which marks the dividing line between the Australasian and Indomalayan eco-zones, Lombok has better beaches than Bali, bigger surf breaks, a bigger volcano and more varied landscapes. So why is it that two decades later, land prices remain the same? But more importantly, why is all that about to change?

Religious tensions flared in January 2000, when three days of rioting and the subsequent media coverage combined to decimate tourism numbers. Investors fled and never came back [Arse!]. Lombok may have missed out on tourist dollars over the years but it has also saved its integrity by not ending up, like parts of its big sister Bali, as a silly overpriced variation on the global theme park, complete with Vegas-style hotels, Padi dive shops and junk food.

Lombok boasts an international airport with direct flights from Singapore and Kuala Lumpur. Pristine beaches ring the island and many, particularly in the southeast, remain untouched. Snorkeling, diving and surfing can be world-class, and new sites are being discovered all the time. Now, here’s the rub.

Emaar Properties, the Dubai-based real estate giant, is set to launch a life-changing development for the residents of Lombok. The UAE-based global property developer has expanded its presence to Southeast Asia with an exciting 1,200-hectare project, set on the pristine Mandalika Beach, that will cost an estimated US$600 million.

In the presence of Indonesian Vice-President, His Excellency Jusuf Kalla, Emaar Properties Chairman Mohamed Ali Alabbar signed a Memorandum of Understanding (MoU) with Muhammad Syahrial, President Director, Perusahaan Pengelola Aset (PPA), the state-owned Asset Management Company.

“Indonesia is our 16th global market and the Lombok development will scale up our property portfolio to a wider Southeast Asian region,” Alabbar said. “The Lombok project also marks our consolidation of the property development roster by having world-class developments in emerging markets with high growth potential.”

He added: “Lombok is one of the most promising tourism destinations in Indonesia and has the potential to be a magnet for world travellers. We are thankful to the Indonesian Government for their trust in us to support their development initiatives that will help position Lombok on a par with Bali as a world-class tourism destination.”

Emaar’s Lombok project promises to be an environmentally-friendly development that integrates natural elements into a residential, leisure and hospitality zone. Eco-friendly measures will be adapted for the Lombok project to ensure that residents can enjoy the advantages of living in tune with nature. The development will boast a 7km natural waterfront, which will support a marina as well as luxury residences and resorts by five-star hospitality chains.

It’s welcoming news that Indonesia is preparing to throw off its ‘sick man of Asia’ mantle and heralding the return of foreign investors. Indonesian Property Studies Chief Analyst Mr Simanungkalit was quoted as saying: “The time is right to give access to more foreign firms, which could contribute US$10 billion of investment over the next five years.”

With international companies like Emaar leading the way, and government incentives to ease foreign investment and visa restrictions, Indonesia might hopefully take its rightful place among the other booming economies in Asia as a stable, solid trustworthy location for foreign investment.

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