Great oppotunity for smaller development


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Posted by surfaddict on Thursday, 4. February 2010 at 19:42 Bali Time:

In Reply to: Bali in 20yrs time if this happens...... posted by Stavros on Thursday, 4. February 2010 at 15:30 Bali Time:

I believe that the major impact on Bali is caused by the proliferation of medium to large hotels, not by the smaller developments undertaken by individuals.

Medium to large hotels are built and owned by local and international companies: they already have the right to the western equivalent of freehold title. So this new regulation will not affect the building activity by the major domestic and international investors.

The article likens the impact of changes to tenure to what has happened in Hawaii, hoping perhaps to elicit a bit of western guilt at the destruction of the local culture, but I think it's the Indonesion companies that are the most rapacious and insensitive.

The post also raises the spectre of what has happened in Hawaii. Although I must admit to not having been to Hawaii, my impression is that the model for development in Hawaii has not led to anything like the dysfunctional urban conglomerate of Kuta/Legian/Seminyak etc..

It seems to me that small investments by individuals is far preferable to that by large companies. Single dwellings in existing communities would have far less impact than large scale hotels.

Finally, I believe that the change to the option for a 75 year lease will not really have much of an impact, what is really needed is a change that allows foreigners freehold title to land in Indonesia.


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