Hold On issuing hotel licence in Badung regency

heerhugo

Most people seem to get a Pondok Wisata licence. You need to check the BKPM negative investment list: http://www.bkpm.go.id/file_uploaded/PPres-36-2010.pdf Search for hotel. For 1 or 2 star hotel you can up to 51% and for 'other accommodation service' you can own up to 49%. I don't know what other accommodation is referring to, but it could be Pondok Wisata. A homestay cannot be owned by foreigners. Don't know about spas. Probably need a separate licence. Restaurant requires a separate licence as well as a bar if you plan to serve stronger alcoholic drinks than beer. Yes, but there in lies an opportunity. Many older hotels in Bali are poorly maintained and undermarketed. They seem to just chug along and you get the feeling that the owners have lost interest in the property.

As spicyayam already said a pma can not hold a pondok wisata license, pondok wisata can only be for local companies as a PT CV or private name... Setup a management PMA and a local CV or PT, the PMA controls the CV/PT and the CV/PT requests for a pondok wisata..

ferdie

Markit wroteI have friends that have built a dive/surfing/luxury resort on a wonderful secluded bay on one of these wonderful islands that Indonesia has so many of and they really enjoy it immensely - alone! They are dying from loneliness as they can't get any people to come join them and pay for the pleasure - they have spread both cheeks for all the travel agents and tour operators that they can find to give comp introductory weeks holidays to. All say the same thing - "gee would be good if it was on Bali". There is still 90% of Bali that hasn't been turned into a toilet like down south and that will be the attraction in coming years. If you don't want to join the slaughter down south and would rather find something nice up by Candidasa PM me.

Where is the island location anyway? I have friends who loves to travel to those kind of places, I think they don't mind having 1 extra stopovers in their journey to the East with the rental boat

Markit

Lembeh on Sulewesi - sorry I have to ask before I "out" the place.

Mickey

As spicyayam already said a pma can not hold a pondok wisata license, pondok wisata can only be for local companies as a PT CV or private name... Setup a management PMA and a local CV or PT, the PMA controls the CV/PT and the CV/PT requests for a pondok wisata..

Dank je heerhugo. is Klumpu Bali Resort Sanur Indonesia | A blend of traditional and luxury looks wonderful and very professional website. great job! is this the project you started in 2009-2011?

ferdie

The question now is what is your vision? For me, reading your post about including at least 25% surfing activities is weird, you didn't mention the main focus which is the 75% is what:icon_confused: Spa? Restaurant? or just hoping whatever that trickles down from the big wave of tourist in Bali? What is your main point?

Mickey

Most people seem to get a Pondok Wisata licence. You need to check the BKPM negative investment list: http://www.bkpm.go.id/file_uploaded/PPres-36-2010.pdf Search for hotel. For 1 or 2 star hotel you can up to 51% and for 'other accommodation service' you can own up to 49%. I don't know what other accommodation is referring to, but it could be Pondok Wisata. A homestay cannot be owned by foreigners. Don't know about spas. Probably need a separate licence. Restaurant requires a separate licence as well as a bar if you plan to serve stronger alcoholic drinks than beer. Yes, but there in lies an opportunity. Many older hotels in Bali are poorly maintained and undermarketed. They seem to just chug along and you get the feeling that the owners have lost interest in the property.

Thank you Spicyayam...what you saying makes sense

Mickey

I am reading thru this, and see Canonman's suggestion for a great location (Sumba), and Mickey's response that the tourist are not there. Think of G-land in East Java (see G-Land - Wikipedia, the free encyclopedia). A location with a great surf break (I am told, since I would not know a great surf break if I saw one) in a location difficult to access and with no tourism back then when it was "discovered". What has happened since then is that they have used Kuta, Bali as the base, arranged surf safaris starting from Kuta, provide everything including the transport there, the accommodation with all meals etc. It is relatively high-priced, and from what I can see - does good business. I think if you can think outside the boundaries of what is currently being offered, you may hit gold.

Hello Ronb, you right about G-land. there is one surf camp owned by an Australian and they are doing very good business. but that is G-land, a world class wave 10/10. every surfer's dream is to surf that wave plus the climate conditions in that region are just perfect. the target group is very specific. i'm very positive about Sumba and as you said if proper arrangements are made in Bali to transfer to Sumba than there is good chance that the business will run.

hinakos

Markit wroteLembeh on Sulewesi - sorry I have to ask before I "out" the place.

no surf in Lembeh. surf and dive rarely go together. (there are some exceptions - like the place canon describes- but not many - particularly in indo)

Mickey

ferdie wroteThe question now is what is your vision? For me, reading your post about including at least 25% surfing activities is weird, you didn't mention the main focus which is the 75% is what:icon_confused: Spa? Restaurant? or just hoping whatever that trickles down from the big wave of tourist in Bali? What is your main point?

Hi Ferdie, my vision still need fine-tuning. but i did get an answer to my question. Conclusion, there is a moratorium in issuing hotel licences in regency of Badung. Alternative, take over an existing PMA with all licences or create a management company and a local CV or PT, the PMA controls the CV/PT and the CV/PT requests for a pondok wisata. if you grow more than 6-7 units, create a 2nd local CV or PT...etc. Other regencies don't have this problem.

SHoggard

ferdie wrote In my opinion getting a Cv under your PMA is illegal and not safe, the same as using a nominee

Yes that's what I thought ... so how are all these foreign owned 3-5 room homestay or villa rentals operating [B]legaly[/B]

ferdie

SHoggard wroteYes that's what I thought ... so how are all these foreign owned 3-5 room homestay or villa rentals operating [B]legaly[/B]

maybe they were built before the rules about it implemented? or the implementation got lost in the wave of politic and money? LOL

SHoggard

Hi Guys - I'm totally confused by this thread it's a bit like sitting in a small pub with a group of people who are having three conversations going on at the same time:- Is it about -finding obscure surfing spots outside Bali or is it about - whether Badung has a hold on hotel licenses or is it about - what type of vehicle one would use to set up an hotel/restaurant/spa/with 25% surfing something-or-other But this confused me most: [quote] a pma can not hold a pondok wisata license, pondok wisata can only be for local companies as a PT CV or private name... Setup a management PMA and a local CV or PT, the PMA controls the CV/PT and the CV/PT requests for a pondok wisata..[/quote] [quote] Conclusion, there is a moratorium in issuing hotel licences in regency of Badung. Alternative, take over an existing PMA with all licences or create a management company and a local CV or PT, the PMA controls the CV/PT and the CV/PT requests for a pondok wisata. if you grow more than 6-7 units, create a 2nd local CV or PT...etc. [/quote] As I understand it: A PMA is an Indonesian registered company - why isn't it able have apondok wisata? A CV is a partnership between two (or more) Indonesians - only! Or have I got that wrong? While we're pondering the pondok wisata issue.... would one of the surfies get the drinks in? its your round!

ferdie

SHoggard wrote As I understand it: A PMA is an Indonesian registered company - why isn't it able have apondok wisata? A CV is a partnership between two (or more) Indonesians - only! Or have I got that wrong? While we're pondering the pondok wisata issue.... would one of the surfies get the drinks in? its your round!

A homestay is included in the negative investment list, so the rules forbid the foreigners to own them, whether personally or an institute I think the logic behind it is homestays is preserved for the locals to develop the local economy so the foreigners must invest in the higher class accomodation I thought expat are only allowed to own PT, because CV hold the financial consequences even until the shareholders personal asset, but it won't worked for expat or a PMA PT? In my opinion getting a Cv under your PMA is illegal and not safe, the same as using a nominee

matsaleh

SHoggard wroteYes that's what I thought ... so how are all these foreign owned 3-5 room homestay or villa rentals operating [B]legaly[/B]

Villa owners I know have applied for the Pondok Wisata licence in the name of the nominee. The going rate: Rp20 million.

SHoggard

matsaleh wroteVilla owners I know have applied for the Pondok Wisata licence in the name of the nominee. The going rate: Rp20 million.

That's Rp20 million for the licence or the nominee fee? In the case of a leasehold where there is no nominee ? (the landlord?)

ronb

I think it differs from one regency to another.

matsaleh

SHoggard wroteThat's Rp20 million for the licence or the nominee fee?

For the licence, in Badung regency.

SHoggard wrote In the case of a leasehold where there is no nominee ? (the landlord?)

Yes, the landlord.

SHoggard

matsaleh wroteFor the licence, in Badung regency. Yes, the landlord.

Thanks, matsaleh, That's logical So it would probably make good business sense to include obtaining a Pondok Wisata in the lease agreement with the landlord, after showing him the money.... but before actually giving it to him (so he'd be less inclined to jack up the price).

hinakos

SHoggard wroteThanks, matsaleh, That's logical So it would probably make good business sense to include obtaining a Pondok Wisata in the lease agreement with the landlord, after showing him the money.... but before actually giving it to him (so he'd be less inclined to jack up the price).

Ive done this with both of my leasehold agreements - had it written into the lease that the landlord must assist and sign all relevant peperwork in order to get IMB/Pondok Wisata etc. Sounds good - and it is - until the IMB process stalls as the landowner hasnt paid his land taxes in the last 10 years (which by the way have more than doubled in Badung Regency in the last 2 years)Back taxes need to be paid or these processes are stalled. And penaties for late payment. I've had to pick up the tab as a result. Not a show stopper - but an unexpected 8 mill or so. Even if you have it written in your contract that the land is being leased "free of all encumberance".....the Balinese dont believe the land tax is an encumberance - as they are never chased up to pay this (they are after all a member of the voting public - regencies dont want to lose that vote - and these peole band together in the Banjar and all unify not to pay the land tax). I had to convince the landowner that i really needed this to be paid - and he was none too happy about it as he was standing unified with the entire Banjar in protest about recent hikes in the land tax. Many Balinese i've talked to in Badung simply dont pay that tax - they dont believe they should as they are Balinese. In hind sight - my lease hold contract should have read "free of all encumberances AND outstanding land taxes" It seems encumberences alone was not specific enough.

ferdie

hinakos wroteIve done this with both of my leasehold agreements - had it written into the lease that the landlord must assist and sign all relevant peperwork in order to get IMB/Pondok Wisata etc. Sounds good - and it is - until the IMB process stalls as the landowner hasnt paid his land taxes in the last 10 years (which by the way have more than doubled in Badung Regency in the last 2 years)Back taxes need to be paid or these processes are stalled. And penaties for late payment. I've had to pick up the tab as a result. Not a show stopper - but an unexpected 8 mill or so. Even if you have it written in your contract that the land is being leased "free of all encumberance".....the Balinese dont believe the land tax is an encumberance - as they are never chased up to pay this (they are after all a member of the voting public - regencies dont want to lose that vote - and these peole band together in the Banjar and all unify not to pay the land tax). I had to convince the landowner that i really needed this to be paid - and he was none too happy about it as he was standing unified with the entire Banjar in protest about recent hikes in the land tax. Many Balinese i've talked to in Badung simply dont pay that tax - they dont believe they should as they are Balinese. In hind sight - my lease hold contract should have read "free of all encumberances AND outstanding land taxes" It seems encumberences alone was not specific enough.

If the property tax doesn't have to be finished quickly, you could have ask for a discount or even the whole penalty can be written off if you appeal to the tax office It should be done by the landowner but it would take some time to do the whole process

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