Property firms stake claims on west coast

Property firms stake claims on west coast

The cataclysmic explosion of Krakatau volcano in the Sunda
Strait in 1883 caused massive reverberations around the world. An
explosion of a different kind is rocking the area today as major
property investors vie to develop luxurious tourist projects. The
Jakarta Post reporter, K. Basrie, visited the area last week to
probe the development. More articles are on page 9.

SUNDA STRAIT COAST, West Java (JP): Change is coming to the
coastline fringing the Sunda Strait.

It is not the legendary and looming presence of Krakatau lying
offshore. Nor the enticing waters lapping the beaches, its superb
sunsets or unpolluted surroundings winding 100 kilometers from
Anyer in the north to Tanjung Leuser in the south.

This corner of Java, a 90-minute drive from Jakarta, now has a
new look of luxurious condominiums and exclusive beach houses,
complete with first-class marine sports centers.

Many projects are still under construction, literally putting
in the shade the traditional cottages, villas and bungalows built
during the 1970s.

Word is out about the tourism potential of the area, and giant
developers, individual investors and land speculators are
jostling for a piece of the action.

The slightly worn quality of the area, an opportunity for
foreign tourists to "rough" it before returning to creature
comforts in their homelands, is vanishing fast as it turns itself
into a modern coastal resort.

Locals and property observers say the make-over began three
years ago. Some attribute the growing development to the
oversupply of property, lax environmental rules and the
congestion of the once favored Puncak mountain resort.

Emerging as favorite spots along the coast are Anyer,
Karangbolong, Bulakan, Carita, Bama, Tanjung Lesung, Sumur and
Cigeulis.

Most property is for sale but some is for lease. Rates, almost
as high as those in Jakarta, are mostly in U.S. currency. The
main target is investors, affluent families from Jakarta, Bandung
and Lampung and expatriates.

For example, properties at the Admiral Villa in Resor Lippo
Carita cost between US$150,939 and $227,476 each. Beachfront
condominiums owned by the same developer are offered between
$70,000 and $206,000 per unit.

PT Karang Bolong Beach Resort, Grup Daksa, Lippoland, Murti
Kurnia, PT Pondok Kalimaya and PT Pudjiadi Prestige Ltd are among
the major developers staking their claim.

Tanjung Lesung

PT Banten West Java occupies one of the largest tracts of
1,500 hectares at Tanjung Lesung, a pristine area around 190
kilometers from Jakarta.

Owned by tycoon Sudwikatmono, the Tanjung Lesung Tourist Site
will eventually have hundreds of exclusive beach houses, villas
and bungalows, according to Iing, a contractor at the site.

Several developers have handed over the service, maintenance
and management of their projects, mostly hotels, to international
property chains.

Pudjiadi's Marbella Hotel is now managed by Sol Melia, and
Kondominium Pantai Lippo Carita by Clarion of U.S.-based Choice
Hotels.

Heady times for property agents. Sales are increasing, and the
occupancy rate of rented rooms and villas remains high,
particularly during weekends and public holidays.

"On weekdays, the occupancy rate still averages around 60
percent," Masri, executive assistant manager of Clarion Suites
Carita, told The Jakarta Post.

The boom does not seem to have undermined business of non-
rated hotels.

"So far, business remains good and our rooms are always full
during weekends," said Suryo, owner of Pondok Pantai Bulakan
cottage.

Demand for beach houses and cottages in the Sunda Strait coast
is clearly high.

"Most of the beach houses, which are still under construction,
have already been reserved by Jakartans at prices between Rp 150
million ($60,000) and Rp 400 million each," Iing said.

Just seven of Lippo Admiral's 88 condominiums are still
available.

Masri said the boom was due to several reason.

"Its closeness to Jakarta, the unspoiled beauty of the beach,
the amazing panorama and the wide choice of water sports and
facilities have made this coast an ideal getaway for couples and
families," he said.

It takes 90 minutes from the Kebon Jeruk tollgate in West
Jakarta to Anyer via the Jakarta-Merak highway.

"There's no other place near the capital that provides as many
attractions as here," said Robert Sinaga, a senior executive of
the local hotel and restaurant association.

Victim

Robert, who also owns a hotel and a seafood restaurant, fears
the area could become a victim of uncontrolled property
development on the scale of Puncak.

"It could happen to this resort in the next few years if the
authorities fail to implement rules against unscrupulous
developers," he said.

Allowing developers free rein to construct luxurious
condominiums, apartments and villas along the coast will only
keep foreign tourists away, Robert said.

An informal study by the Black Rhino Tourist Center in Carita
concluded that the number of foreign tourists it has assisted in
recent years had fallen significantly.

"Foreigners are fed up with modern buildings," said Ujang, an
executive of the tourist center. "What they need is the real
flavor of the Indonesian atmosphere."

According to the Pandeglang Administration Office, which
supervises Carita to Tanjung Lesung beach, the number of foreign
tourists in 1995 rose rapidly to 21,564 from 13,826 in the
previous year. The number of domestic tourists climbed to 413,620
from 177,821 in the same period.

Robert warned that increasing property sales, including to
hotels, may cause a downturn in taxes collected by the local
administration.

A local councilor from the Armed Forces faction, Abdul
Rachman, agreed with Robert and developer he alleged had tried to
cheat the local administration.

"I was at the project site last year to witness the ground-
breaking ceremony of a hotel, but there has been no construction
at the scene until today."

He said the developer had instead continued in constructing
condominiums and villas, and sealing off the beach from tourists
and passers-by.

Along the popular beach of Anyer and Carita, developers
blocked their separate zones by excavating sand and building
stone walls.

The government is not blind to the violations.

"It's true, and I've seen for myself that there are many
violations in Carita and Anyer committed by developers or
individuals," Minister of Agrarian Affairs/Chairman of the
National Land Agency Soni Harsono said in a TV interview early
this week.

"They reclaim and block the beach, and construct buildings as
they wish so other people could no longer pass through," he said.

"It is a monopoly and we'll soon take stern action against
them."

Time will tell if he will live up to his word.