Situated on the hillside in Torok Bay, South Lombok, the beachfront Gran Meliá Lombok will likely set new travel and hospitality standards on the island, where luxury meets eco-sensitive resort concepts. Invest Islands together with Bali-based Inspiral Architect & Design Studios have come up with low-impact designs for the resort.

“Our vision is to showcase the breath-taking beauty of the Indonesian archipelago and deliver exceptional developments that raise the profile of their destination. We want to open up unexplored islands and drive benefits for every stakeholder, from indigenous communities to international investors. Gran Meliá Lombok is a great example of this strategy in action,” stated Kevin Deisser, one of the cofounders of Invest Islands.

The resort will offer 125 units overlooking a view of the Indian Ocean, with five different types of rooms – KAYMA Moroccan tented suites, AURORA minimalist suites, INSPIRAL eco-luxury villas, LA RESIDENZA Bauhaus-style residences and Tent Beach Villa. World-class facilities are also available among the lush greenery, from a clubhouse and restaurants to a wedding chapel.

Each unit is thoughtfully designed as architect Charlie Hearn has inculcated a low carbon footprint into the production and uses locally sourced materials such as bamboo for the construction. “I’d like to make the destination as a form of identity,” Hearn told The Jakarta Post. “The building [design] reflects the shape of the land and we use natural, local material. One of the great things about Indonesia is the unique craftsmanship with attention to detail.”

Sustainability values are expected to be at the core of the resort’s daily activities. Gonzalo Maceda, vice president development of Meliá Hotels International, exclusively shared with the Post about the green and social initiatives that are in the pipeline for Gran Meliá Lombok. “We are incorporating rainwater collection and [plan] to use 80 percent of rainwater for irrigation in the hotel,” said Maceda. The resort also plans to save energy and manage waste by collaborating with Invest Islands’ ongoing initiatives in Lombok, such as beach cleaning, recycling plastic materials into everyday products and creating compost from organic waste.

Gran Meliá Lombok is located 25 kilometers from Lombok International Airport and is close to Mandalika, which was home to this year’s Grand Prix MotoGP. The resort has been acknowledged as the Best Upcoming Hotel Development in Indonesia and Best Hospitality Development in Asia by the PropertyGuru Property Awards.

Source: thejakartapost.com

“We see the race having an impact on a regional and national level. The events before the race alone generated around Rp 500 billion here,”  Nicke Widyawati, Pertamina’s president director, said on Sunday. 

“During and after the race, it is estimated to increase six times,” Nicke said. 

The Grand Prix started on March 18, with a series of training runs and Moto3 and Moto2 races, culminating in the MotoGP race on Sunday. 

Nicke said the event created a demand for food and accommodation for 11,000 workers for the races. Also, flights and hotels were fully booked to cater to more than 100,000 fans coming from around the country and abroad to watch the races live at the Pertamina Mandalika International Street Circuit in Lombok. 

“Everything has been rejuvenated in the past three months. There are 1,300 new micro-, small- and medium-sized enterprises specialized in culinary established in Lombok. Let alone another kind of MSMEs,” Nicke said. 

Nicke said the Mandalika MotoGP event is proof that Indonesia can recover quickly by accelerating the post-pandemic. “Mandalika is also known throughout the world, the racer who posted the nature and beauty of Mandalika. That is extraordinary,” he said.

On the other hand, Nicke said Pertamina is proud of its involvement as a sponsor for constructing this circuit. “That’s why it’s called Pertamina Mandalika International Circuit,” said Nicke.

Indonesia spent Rp 1.2 trillion for constructing the 4.3-kilometer Pertamina Mandalika International Street Circuit. It is equal to the cost of building ten kilometers of toll road in Indonesia. 

The circuit is part of the government-backed push to develop the tourism industry in one of the least developed provinces in Indonesia. West Nusa Tenggara’s per capita income was Rp 17 million last year, only higher than its neighbor’s East Nusa Tenggara’s Rp-13-million and Maluku’s Rp-16.8-million per capita incomes. In comparison, Indonesia’s per capita income was Rp 40.8 million. 

Source:jakartaglobe.id

While typically known to be a popular island among travellers, over the last year, Lombok started to gain more traction among foreign investors. As its prospects are clear for savvy investors who are well-versed with Indonesia’s tourism industry and roadmap.

Lombok – Mandalika is part of Indonesia’s “10 New Bali” – an initiative to drive economic growth, by creating more jobs, improving infrastructure and access. A grand plan that many are keenly observing, given Indonesia’s recent fast-moving progress of doing business and regulatory change to improve its investment climate. Economic forecasts aside, another reason why real estate in tourism hotspots remains popular is due to its natural ability to quickly recover from adversity.

Time and time again, Bali’s tourism sector has been put to the test. In 1998, Indonesia suffered a severe financial crisis, every sector was distressed except tourism in Bali. Compared to other regions, the impact on Bali was minimal – the island’s activities remained largely unscathed due to the devalued Indonesian Rupiah, as it acted as a catalyst in preserving consumer demands in the tourism sector.

Then in 2017, the island’s resiliency was again put to the test. Tourism received a heavy blow when the volcano, Mount Agung, started showing signs of eruption in November. Inbound traffic took a dip, but the island was able to quickly bounce back, with 14,000 visitors every day – showing an astonishing recovery of over 90 percent in less than three months. While these setbacks remain exclusive to Bali, COVID-19 has shredded our global tourism.

As we continue to monitor travel regulations and trends in the tourism sector, a survey by HVS Global Hospitality Survey, a leading tourism consulting firm, reported that the Average Daily Rate (ADR) of hotels across the South Pacific region dropped by 10 percent in March 2020. Hotels and accommodations in Bali, on the other hand, were able to somewhat rely on its ADR to sustain its business. According to a TTG Asia report, Bali’s ADR was 91 percent higher than the national average in the same period. While some digital nomads have (reluctantly) left the island, a new pool of audience trickled in – the majority of our global workforce who have permanently transitioned to a remote work arrangement have now made Bali their new home.

Steps to Recovery – Bali & Beyond: 10 New Balis 

Indonesia’s Ministry of Tourism has made multiple in-roads on delivering a plan to recover the industry from this drought. One of the key plans is to of course accelerate vaccine drives. The central government has administered over six million vaccine doses, with hospitality and frontline service employees as a priority. In early June, its task force had distributed over 50 percent of its vaccine, making Bali the province with the highest rate of vaccination coverage in the country. In addition, the Indonesian government is also in talks with Singapore, China, South Korea, India, the Netherlands, United Arab Emirates, Ukraine, and Poland to open up travel corridors.

On an economic level, in 2019, tourism accounted for 15 percent of Indonesia’s Gross Domestic Product (GDP) – a 4 percent increase from 2016. To support economic growth policies, Indonesia is focused on increasing the number of foreign arrivals, and it understands these targets cannot solely rely on Bali.

In 2016, the Indonesian government introduced 10 other top priority destinations (known as the 10 New Balis) to replicate the economic effects of tourism in Bali nationally. One of such destinations is Mandalika on the island of Lombok – a stone thrown away from Bali.

The Next Bali: Mandalika – A Special Economic Zone (SEZ) in Indonesia 

To boost competitiveness among its neighbouring countries, the Indonesian government is developing specific areas, known as Special Economic Zone (SEZ). They are designed to maximise industrial, export, import, tourism and other related activities that have high economic value and broaden their potential for an international market.

In 2017, President Joko Widodo declared Mandalika as a priority destination thus accelerating the developments on Lombok. The US$3 billion Mandalika Development Project in Lombok aims to have over 16,000 hotel rooms, a water park, a 27-hole golf course, 1,500 villas, and a 4.3 km International Race Circuit, which is scheduled to host the MotoGP championship in 2022. As an SEZ, Mandalika poses a lucrative investment opportunity for foreign investors, where 2.8 million tourists are projected to arrive in 2026 as compared to 1.9 million in 2015. This brings the island’s tourist arrival growth at a CAGR of 2.3- 4 percent.

In addition, the Integrated Tourism Master Plan also known as RIPT (Rencana Induk Pariwisata Terpadu) detailed a plan to improve connectivity from ports and airports to facilitate tourism and also aim to preserve and promote the cultural diversity of Lombok. The vision is to have a resilient, inclusive and sustainable tourism ecosystem in Lombok.

SEZ Incentives in Mandalika

Designed to be a world-class tourism destination, the Indonesian government has set up long-term benefits for business actors establishing themselves in SEZ territories. And here are some key differences investors should keep in mind when starting a business in Bali or Mandalika:

Land Price Comparison

Aside from long-term business incentives, foreign investors are banking on its land, hoping to reap benefits from the lower land price when it comes to investing in Lombok, compared to Bali.

In developing and developed areas such as Canggu and Seminyak, land prices are estimated to cost approximately Rp600 to 800 million (US$40,000-55,000) per 100 square metres. While outlying land is priced at approximately Rp100 million (US$7,000) per 100 square metres. It is no surprise that Bali has the fastest growth in land prices amongst Indonesia’s archipelago of islands.

As “The Sister of Bali”, land prices in Lombok have followed a similar upward trajectory ever since the commencement of the Mandalika Project and the completion of Lombok International Airport. The highest valued land is in Kuta (near Mandalika) where land prices have reached approximately Rp350 million (US$25.000) per 100 square metres –halved, compared to the hot spots of Bali. Land prices in the surrounding areas are still relatively low ranging from Rp115-215 million (US$8,000-15,000) per 100 square metres.

Source: indonesiaexpat.id

Why Should I or My Company Investing in Lombok?

There are many reasons why you or your companies should consider investing for property in Lombok, especially those who run hospitality, holiday accommodation, restaurant, and entertainment businesses. Here are some things to consider:

• Lombok has slowly become more recognized in the past decade, and has been promoted as ‘the new Bali,’ which offers many places that are still unexplored and pristine.

• Lombok has grown in popularity among beachgoers and surfers, especially since Lombok also has many unexplored or pristine beaches with really great waves.

• Lombok government is in efforts to increase local revenues by attracting tourist and investors, which means that the investment climate is quite positive for many years to come.

• Lombok has been more accessible with the newly built international airport; plus, the availability of cheap airlines has enabled more people to go to Lombok, opening even more investment opportunities.

With these amazing possibilities and potentials, Lombok has become favorite place to invest among individual and group investors. Also, many companies have started to build resorts, hotels, restaurants, bars, salons and other services in some areas, to attract more visitors and finally more revenues. This is a great opportunity if you have company and want to invest in Lombok.

But, there is some hassles that you must pass if you want to get property in Indonesia as individuals. If you have an experience before, you will see that there are several requirements of foreign investors to own full property title in Lombok and Bali, such have to be partner with nominee and lawyer. However, Indonesian government has Penanaman Modal Asing (Foreign Investment) or PMA, which is included a scheme governed by law that regulated foreign investment and investor acts to open business in Indonesia.

Lombok government expects more investors to come and provide more facilities as well as employment opportunities, and therefore, foreign companies can invest for Lombok property even without any partners, representatives, or nominees. The company just needs to hand business plan, proposal, and other required documents, and fulfill all formal requirements before being allowed by the state to get property.

This is definitely a great opportunity for foreign investors to get more profits from Lombok property and provide more contributions and job opportunities for the local. By opening business in Indonesia and buy property in the name of the company, investor can get their dream property in Lombok or Bali, and they can get it without have to deal with extra hassles of nominees and lawyers.

Basically, PMA is the official name of foreign investors that open business in Indonesia. If you are a big-scale investor with big capital and business plan, using PMA scheme is the best and most profitable way to get property in Indonesia, including in Lombok.

What to Prepare for PMA Scheme

If you are a foreign investor interested in buying Lombok property and you want to buy it under the PMA scheme regulated by Indonesian government, you must make sure that you provide:

• Good and concise business plan with profit projections, business goals, business schemes and other required information.

• Proof and documents about how you(your) business plan will help contributing to surrounding communities, such as in relation with employment, life quality, local investment scheme, and national revenues depend on how big your company is.

• Proof that you have deposited certain amount of money in the reputable bank.

• Other formal requirements as requested by local and national governments, depend on what kind of business you have.

You also have to provide other requirements such as formal documents that are essential in forming new foreign investment or business. Usually, a foreign business can be officially called PMA after 3 or 4 months of period after taking care of all requirements.

Why Following PMA Scheme for Lombok Property Investment?

If you follow PMA scheme, you will be able to own a property in Lombok or basically any other location in Indonesia, in which your company or business becomes the official holder or the property title. This is a great option if you plan to spread the business operation to Indonesia, or if you plan to work and stay in Indonesia, or if you do not want to have partnership and other hassles when owning property in Indonesia.

What if I want to Invest as Individual?

Owning a property in Indonesia, especially in potential holiday development area like Lombok, is a great investment if you plan to start a business here.

PMA is one of our suggestion if you want to invest as company. But, if you are one of the individual investors, leasehold transaction may be one of the best methods to gain full title of the property.

Leasehold transaction gives individual investors the right to own full property title, without having to follow Foreign Investment scheme stated by Indonesian realty law. In this case, the investor does not have to own a business in Indonesia or open a company in this country with proposed business plan. Also, this plan does not require individual investor to have nominee or representative that will give the property title through legal steps after the investor buying the property.

Leasehold transaction works like this: once the investor buys the property in Lombok or Bali (or basically any other areas in Indonesia), they can put their property in lease for up to 25 years. Of course, during that time, the owner cannot actually use the property personally, but the owner can have full title of the property without having to go through legal steps with lawyer and nominee (representative).

Benefits of Leasehold Transaction

In Indonesia, foreign investors who want to get any property (including in Lombok) must do it through nominee to get full property title, in which the nominee get the title first during the transaction, and later hands it to the owner rightfully and legally through lawyer as witness. This means extra time, cost and hassle for the owner to get full ownership of the property. Leasehold transaction helps to get the title without having to go through nominee and lawyer.

Also, since the property owner must put the property on leasehold, it is great for property buyers who aim for passive income. Investors can get steady income from people who rent or lease the property, and after certain amount of time, investors can finally gain their property titles back as individual owners.

If you are a foreign investor and wish to have property in Lombok or Bali, but want to keep the property title fully without using any representative, then you should consider this leasehold transaction.

So, are you interested in investing in Lombok and Bali areas right now? If you are, you need to consult with reputable realty service from Indonesia.

Why You Need Realty Company Service for Property Investment

If this is your first time buying property in Indonesia, you will need help from reputable institutions that can guide you through all legal and formal aspects of purchasing until you can get the property title in your hold. Or, if you are a business owner, you may want to avoid problems since the beginning by property conduct all formal steps and requirements necessary to obtain Lombok or Bali property. However, there are other aspects in which realty service in Indonesia will be necessary.

In Lombok and Bali, many land owners use traditional rules to manage their lands. In Lombok, for example, there is the term of ‘Pipil’ or unregistered land that has been passed from generations. Pipil land owner must converse the land first before being able to sell it; a process that takes about 1 year before the investor can get the full title of the land. These aspects have been understood by realty service, and they will help every investor getting the property in pleasing ways.

Asking for help from Indonesian realty service also means that you can get extra recommendations about Lombok or Bali property from it, especially if you never buy one before. Remember, Bali and Lombok are popular so you need to pick the right time and price to get a piece of land or property. Realty service with good knowledge about property trend in Indonesia will help investors earning future profits by choosing the right property or land. This is why that the cost for realty service is just like small investment for the big one.

What is Pipil Land

In Lombok, Pipil term refers to a piece of land that has been passed down from generations, which has happened in a long period that the current owner usually does not have the official registration certificate. Therefore, it can be a real slow process for the investors if they want to buy the land, even if the land owner agrees with the price. There are certain amounts of period both parties need to set everything up before the land can be sold.

First of all, the original land owner must apply for formal registration certificate at Indonesian Land Office, as this is a formal requirement needed to prove the identity and documentation of the land as well as converse the land status. This process can take up about 3 to 4 months long. However, as for the actual purchase, it can happen at least 12 months after the official conversion (which is, after the official certification is released). This means that any investors that want to buy a Pipil land must prepare extra time.

Pipil Conversion and Benefits of Getting Lombok Property

Many potential property investments in Lombok are in the shape of lands, not buildings. These lands are waiting to be converted into hotel, resort, surfer’s cabin, and many more. Buying only the land gives investors more freedom to build the dream property. However, since Lombok is still thick with tradition, investors must follow the tradition, including waiting in certain periods of time when buying any Pipil land.Despite having to wait for land conversion if you get Pipil land, the benefits of this investment are numerous.

Whether you want to hold property title as individual, leasing the property through leasehold transaction, or following PMA (Foreign Investment) scheme, realty service helps you going through all legal matters and documents.

Lombok is one of the hottest spots in Indonesia to own property, especially holiday season. However, foreign investors also need to remember that many people in Lombok have their lands according to traditional rules, which can be perplexing and confusing for people who is not local.

Fortunately, Indonesian realty law also covers everything all foreign investors must know about dealing with traditions related to land selling and purchasing, including Pipil land. If you need anymore information about Lombok, how to Invest, what it needs, don’t hesitate to ask us or visit our websites. We would be pleased to answer all your question.

Have a Good Day!

Source: https://megustacoffee.com/