Trade Minister Mari Elka Pangestu admitted last week that the implementation of free trade zones on the three Indonesian islands near Singapore - Batam, Bintan and Karimun - is beset with administrative problems and that institutional capacity is inadequate. Even though Mari conceded that such start-up problems are part and parcel of the introduction of such a new concept, the enforcement of the free trade zone law, which was enacted in October 2007, has been too slow.

I think sweeping raids are a great plan. Some of those villas could do with smartening up. To whom do I post a broom?

I guess you could say its a villa that is being rented out on a short terms basis (say under 1 year) and tax not being paid on the income. I know it will be hard but I have come across a lot of privately owned villas that are rented out to tourists. The money goes overseas, no tax is paid, nothing going to the local community. Not exactly fair and if continues to go on the locals have every right to kick off.

110-Room Kuta Hotel Ruled an Illegal Structure in Area Reserved for Single Family Residences. (6/13/2009) NusaBali and Bali Post both report that the 110-room Best Western Hotel Sapta Patala on Jalan Kubu Anyar in Kuta now faces a possibly insurmountable obstacle to its eventual opening. The hotel, more than 90% completed and in its final finishing stage of construction prior to official operation, was expanded without first obtaining the required licenses and permits.

Bali Villa Association Urges Government to Close Down Unregistered Commercial Villas. (6/13/2009) The Chief of the Bali Villa Association (BVA), Ismoyo S. Soemarlan, is calling on the government to undertake sweeping raids against illegal commercial villas in Bali and close all illegal villas down. Quoted in Denpost, Ismoyo, who is also the owner of the Villa Uma Sapta, said the hoped the government would soon undertake sweeping raids involving members of the BVA.

Indonesia plans to appoint an independent appraiser to assess the value of the local unit of Newmont Mining Corp (NEM.N: Quote) in order to speed up a divestiture sale, the energy and mining minister said on Friday. An arbitration court in late March ordered the foreign owners of PT Newmont Nusa Tenggara, which operates the Batu Hijau copper and gold mine in Sumbawa island, eastern Indonesia, to sell a 17 percent stake to the government within six months, after a long-running running dispute.