Indonesia mulls leasing islands for tourism<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The Indonesian government is considering leasing a number of
\nsmall islands to individual and corporate investors for resort
\ndevelopment in a bid to boost tourism.<\/p>\n
Minister of Culture and Tourism I Gede Ardika said that the
\ngovernment was studying experiences in leasing islands for resort
\ndevelopment in the Maldives.<\/p>\n
"We are learning from the Maldives how to set up our own
\nregulations on leasing islands for resort development," Ardika
\ntold reporters during a workshop on Tourism Development on Small
\nIslands on Monday.<\/p>\n
The workshop was also attended by Maldivian Deputy Minister of
\nTourism Mohammad Saeed.<\/p>\n
According to Ardika, there are many uninhabited islands in the
\ncountry which could be developed to support tourism.<\/p>\n
According to ministry data, of the some 17,500 islands in
\nIndonesia, only 3,000 islands have been developed for land based-
\ndevelopment.<\/p>\n
However, Ardika said, the government has yet to set up
\nregulations on leasing islands for resort development.<\/p>\n
"We've just started. But hopefully this year we will have
\nfinished the draft," Ardika said, without mentioning a time
\nframe.<\/p>\n
He added that the rules for leasing islands would be
\nintegrated into Law No. 9\/1990 on tourism, which is now under
\nrevision.<\/p>\n
Located in the Indian Ocean, the Maldives archipelago consists
\nof 1,190 islands.<\/p>\n
The Maldives Tourism Act stipulates that islands for resort
\ndevelopment can be leased for a maximum of 25 years. The period
\ncan be extended up to 35 years when the investment exceeds US$10
\nmillion.<\/p>\n
It can also be extended up to 50 years if the investors sell
\n50 percent of their share of the resort to the public.<\/p>\n
Tourism contributes over 30 percent to the Maldive's gross
\ndomestic product. Seventy percent of foreign currency earnings
\ncome from tourism, and makes up 40 percent of government budget
\nresources.<\/p>\n
Vanessa C. Satur of the Asia and Pacific Section of the World
\nTrade Organization said that leasing islands was a very
\nprofitable and practical way of developing tourism.<\/p>\n
However, Satur underlined that the government should play a
\ncentral role to facilitate local people and investors.<\/p>",
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