Im not saying that its the best idea i was just telling who ever wanted to listen what my friend idea is and what he hopes to achieve and from what he told me it sounded like he knew what he was doing.
Hinokos and Balidavo you both mention you couldnt imagine an expat running one but actually my friend is Indonesian but I dont see that being a major factor in whether it can be run successfuly. I know i could be wrong though but like i said its just sharing an idea which is what we do on forums like this . .
I have kost in Denpasar, I bought 4 yeasr ago land and bulding, after runing the business about 2 months, I found the big problem with the building. The leaking, the wall, the tiles come up, and the worst thing are all the doors coming a part. So I did renovation and the cost is about 50 million rupiah. So with this my experience I agree with you, better we buy the land and we build the construction our self.
Now I will seel my kost in Denpasar, and find the land in Jimbaran to make brand new kost with hotel facility.