News

U.S. Embassy Official Meets with Bali Press Prior to June Visit by U.S. President.

(5/17/2010) An U.S. official based in Indonesia has confirmed that President Barack Obama will soon be visiting Bali as part of a brief visit to Indonesia.

Andie De Arment, a U.S. Public Affairs Officer, was quoted by the Bali Post as saying the U.S. President's visit will have implications for U.S. – Indonesian relations.

Andie also said the Indonesia is a country that receives special attention from the U.S. Chief Executive, in part because of the childhood years spent by Obama in Indonesia. Because of these childhood memories, Obama wants to bring his children to Indonesia, with stops at the Borobudur monument and Bali.

The U.S. official also spoke of the experience Indonesia and the U.S. shared in confronting and overcoming the global recession, emphasizing that economic cooperation between the two nations will ensure both emerge quickly from the current global financial crisis.

Obama's visit to Indonesia will take place in mid-June 2010, including, according to the U.S. spokesperson, Bali due to the island's peaceful pluralistic society and its rich cultural heritage.

De Arment told the press that the exact dates of Obama's visit to Indonesia remains unknown. Her assignment, together with her colleagues at the American Consulate General team in Surabaya, is to make the necessary general preparations for the planned visit.

source : Bali Update

Indonesian Government Promises Liberalization of Foreign Property Rights, But Warns there Will be Restrictions.

(3/30/2010) The National Land Agency (Badan Pertanahan Nasional-BPN) is busily looking a number of possible revisions to the laws banning foreign ownership of property in Indonesia and what limitations should be put on place when, and if, foreigners are allowed ownership or long-term leases.

The chief of the BPN, Joyo Winoto, told Bisnis Indonesia that suggested revisions are now being considered by the government to the property law of 1996 governing ownership and occupancy of Indonesian properties by foreigners and the 1985 law on multiple residence dwellings.

The Minister for Housing, Suharso Monoarfa, is compiling revisions that would result in a single regulation addressing ownership of property by foreigners and access to financial instruments for their purchase.

Limitations on Foreign Ownership

Joyo is asking the government and the Minister of Housing to provide clear guidelines on what limitations should be imposed on foreigners owning property in Indonesia addressing issues such as lease terms, location, minimum price thresholds, building types and maximum periods of ownership.

Property developers in Indonesia are urging a liberalization of the property sector. Foreign residents in Indonesia are presently allowed to lease lands for 25 years with subsequent extensions possible for 25 and 20 years. Developers are asking the government to allow leaseholds of 70 years for foreign owners.

The Chairman of the Indonesian Real Estate Association (REI), F. Teguh Satria, says, "In other countries the right of ownership extends to 90 years making the Indonesian ownership option unattractive and in need of change." Teguh assured that REI is preparing a number of limitations on foreign ownership, including ownership access only for apartments or condominiums with a minimum price of US$100,000 per unit.

Echoing the need for control on foreign ownership, the Housing Minister Suharso, quoted by the Bali Post, said limitations were needed in a number of areas, including how financial instruments for the purchase of property would be structured for foreigners. He promised that any changes to the current law would offer more opportunities to property developers but, at the same time, would place some controls on foreign ownership.

source: Bali Update

Foreign tourist arrivals to Bali for March 2010 increased 20.7% over the same month one year before, totaling 194,487. For the first three months of 2010 (Q1) arrivals were up 18.49% at 551,186 foreign visitors.
If arrivals maintain the 18.49% growth level through the end of 2010 that will translate into 2.64 million foreign visitors coming to the island for the entire year.
 

 Key Markets

• Australia, which assumed the pole position as Bali's top source of tourist visitors displacing Japan in 2009, recorded a 68.93% increase year-on-year for Q1 2010 with 121,974 Australians spending their holiday in Bali. When compared to Q1 2008, business to Australia is up 112.72%

• Japan's fortunes continued to slip reflecting their troubled economy and declining travel market. Japan arrivals for Q1 2010 are down year-on-year 20.48% at 66,338. This is a downturn of 29.7% from Q1 2008. These numbers may slip even further in the aftermath of Japan Airlines' April 2010 announcement that it will terminate all flights to Bali in 2010 and close its long-standing office here.

• Taiwan is regaining lost momentum, increasing 23.34% in Q1 2010.

• South Korea's market is stabilizing to some degree. Q1 2010 arrivals decreased only 0.05% as compared to 2009 with 28,810 aarivals.

• Malaysia's dynamic growth in arrivals over the past few years shows signs of moderation with Q1 2010 arrival at 29,195 - a decrease of 2.53% when compared to the previous year.

• Russia's arrivals to Bali seem largely unaffected by the sluggish economic conditions in that country. Q1 2010 arrivals ex Russia clocked in at 21,443, increasing 5.13% over the same quarter one year before.

Long Haul Traffic – Some Good News for Bali

A strong performance by several European markets and The Americas may signal the re-emergence of a lucrative, long-staying, long-haul market for Bali.

• The entire European market increased 28.24% in Q1 2010 totaling 137,062.

• The Netherlands is among the star performers in Europe, increasing 66.46% for Q1 2010 with 19,080 Dutch visitors to Bali. Growth in the Dutch market and Europe in general bodes well for Indonesia's national carrier Garuda planning a return to Europe in mid 2010.

• France was another strong performer ex Europe improving 19.73% in Q1 2010 with 28,629 visitors.

• Germany appears to be shaking off its economic woes, at least in terms of Bali arrivals, improving 19.29% for the first three months of 2010 with 15,309 German visitors.

• The United Kingdom increased an amazing 47.57% for Q1 2010 registering 21,110 visitors.

• The Americas, which includes arrivals from both North and South America, increased 10.77% in Q1 2010 with a total of 26,486 visitors to Bali.
• United States visitors to Bali were up 12% for Q1 2010 totaling 16,520 perhaps signaling a coming recovery in U.S. arrivals.

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Source : Bali Update

The International Real Estate Federation (FIABCI) Congress in Bali marks the momentum of the rise of Indonesia’s property industry.

Through the meeting in Dubai last November 2009, Indonesia has been chosen as the host of the International Real Estate Federation (FIABCI) 61st World Congress after surpassing Norway, one of the other strong candidates. Indonesia was chosen after passing uneasy stage that the country had to go through two-time voting on October 7-8 in Dubai.

Indonesia was slated to host FIABCI Congress in 1998, but later annulled owing to the country’s reform wherein the atmosphere was not conducive.  “Designating Indonesia as FIABCI World Congress organizer is a pride and also a big challenge to make the international property arena as the momentum of economic growth,” Teguh Satria, FIABCI Indonesia President, said during a press conference in Jakarta.

The press conference, held on January 12, was also attended by Minister of Public Housing Soeharso Monoarfa, Group CEO Lippo and Vice-Chairman of the property division at Indonesian Chamber of Commerce and Industry James Riady, and Committee Chairman of the 61st FIABCI Congress Pingki Pangestu.

The 61st FIABCI World Congress is scheduled to take place on May 24-28, 2010 in Nusa Dua, Bali as the annual meeting participated by stakeholders from the world’s property industry.

The event that brings trends and important issues in property industry to the table will be participated by hundreds of representatives from various countries with different professional backgrounds such as property developer, broker, government official, consultant and lawyer.

The President of Republic of Indonesia, Susilo Bambang Yudhoyono, is scheduled to open this event and give a keynote speech pertaining global issues and sustainable economic development.

The event will also present distinguished keynote speakers and world’s acclaimed figures like Steve Jobbs (founder and CEO Apple Corporation), Madame Ho (Group CEO Temasek), Chin Ken Yeang (Green Building Council), to name a few. In addition, this international conference will present other keynote speakers from Indonesia such as Minister of Public Housing Soeharso Manoarfa, Minister of Tourism Jero Wacik and Governor of Bali Made Mangku Pastika. This not to mention a number of national property figures, all of whom will be the keynote speakers during the congress. Among them are Past World President FIABCI Ir. Ciputra, Chairman of the Indonesian Chamber of Commerce and Industry MS Hidayat and Group CEO Lippo James Riady.

“Crises have given invaluable lessons to bring sustainability development to reality. Today is the right time to start a new and better life which is more civilized and more sustainable with future orientation, “Teguh remarked.  Learning from such condition, the FIABCI 61st World Congress will be held under the theme”Save The World: Green Shoots for Sustainable Real Estate.”

Here, Indonesia is encouraging worldwide property stakeholders to commit and actively participate to make sustainability development in the field of economy, environment, social and culture.  The Congress will discuss a number of important issues in global property industry such as innovation, financing, eco-property and tourism.

The first three days of the five-day congress will cover committee meeting attended by all FIABCI’s world executive boards. The election of new FIABCI’s world president for the period 2010-2011 will take place during this meeting.

Also included in the congress agenda is the accolade of Prix d’Excellence Awards, which will be bestowed upon the world’s best property projects in 2010.  Dozens of world’s acclaimed property projects including nine best from Indonesia will compete for the awards.   

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FIABCI in brief

FIABCI (The International Real Estate Federation) is a non-profit association that acts as special consultant with non-government organization status to the United Nations, and also a federation of 120 professional real estate organizations representing more than 1.5 million professionals as well as 3,300 individual real estate practitioners worldwide.

The presence of FIABCI in 60 countries has the objectives of bringing international dimension to local market and giving real estate business opportunities to the FIABCI’s members worldwide. This will benefit the members unique local knowledge, access to the world’s renowned real estate associations as well as important decision making with the supportive data from FIABCI.

Source : FIABCI website