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Emerging markets Bali & Brazil
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Bali’s new property law: part 2
The Liberalization of Foreign Property Ownership in Bali
Indonesian Government Promises Liberalization of Foreign Property Rights
(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.
Suharso confirmed that changes to the law were being intensively considered by his ministry. He hopes that a new draft regulation will be ready to place before the President in May. He cautioned that the implementation of any new regulation faces problems via an amendment process awaiting any regulation in the national legislature.
Source: Bali Discovery
IMF raises Brazil growth forecast to 5.5% for 2010
 The International Monetary Fund this week raised its growth forecast for Brazil in 2010 to an impressive 5.5%, due to the combination of strongdomestic and external demand, strong macroeconomic fundamentals and rising commodity prices. Following recent news from the IMF that they have readjusted their forecast higher for Brazil’s growth in 2010, now 5.5%, it seems the economists are proved right and Brazil is set for a number of prosperous years of economic growth ahead. For 2ndHomes International our interest is the luxury hotel industry specifically, and last week we received more good news as leading independent global hotel analysts STR Global announced the Brazil’s hotel industry is going from strength to strength.  Official data released shows Brazil average hotel revenue has grown over 15% year-on-year over the past 12 months, and currently averages over 70% occupancy across its hotel industry (over 10% higher occupancy than any other country in North or South America).
For full details on the hotel figures released pleaseclick here.
Bali's Booming Tourism Numbers
Bali by the Numbers: Bali Foreign Tourist Arrivals in Q1 2010 Up 18.48%
(5/3/2010) 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 arrivals.
- 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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Project Spotlight
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Bukit Manis | Lighthouse Paradise | Jimbaran Residence |
Santa Catarina | Flex–Building–Bali
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From: € 225.000,- |
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Garage, Garden, Terrace, Pool
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Floors:1 - Bedrooms:3 - Bathrooms:3
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Lighthouse Paradise |
From € 69.950,- |
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Floors:1 - Bedrooms:3 - Bathrooms:2
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Jimbaran Residence |
From € 45.000,- |
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Garage, Garden, Terrace
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Floors:1 - Bedrooms:2 - Bathrooms:2
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Santa Catarina |
€ 75.000,- |
| Santa Catarina is situated right in front of a beautiful paradise beach with a private little marine in front in Prainha, a beach close to Fortaleza, the capital of the p... |
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Garage, Garden, Terrace, Pool
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Floors:1 - Bedrooms:2 - Bathrooms:2
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Flex-Building-Bali |
From: € 71.500,- |
| Even though we have a extensive portfolio which include the most beautiful houses on magnificent places, it could be that your dream house isn't in our existing portfolio... |
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Garden, Terrace
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Floors:1 - Bedrooms:2 - Bathrooms:2
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In case you have booked a holiday to Bali, Brazil, Panama, Thailand or Miami, please inform us in case you would like to inspect some of our projects, objects or plots. We’re strongly represented during the summer holidays and someone from the 2ndHomes Team would love to guide, inform and advice you. It would be a shame if you’re visiting your favorite holiday destination or country, and not have a quick look at our latest projects in case you have any interest. You will be professionally guided by 2ndHomes to our projects and our new Flex-Building service. Call or email us to set up an inspection appointment!
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©2ndHomes International
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It has taken us some extra time, but finally we’re going to start building our Balinese Luxury Villa Resort Bukit Manis. It will be the first in a series to be followed in Brazil (Touros - North East coast), Thailand, Malaysia and Panama. For Bukit Manis the plans and design have been improved in such a positive way that this will bring the project to another higher level (one of the reasons it took us longer to get the IMB license). Instead of privacy walls around the villas the whole land on which the project is being developed, will be cut and filled more to maintain free Indian Ocean views for each individual leveled plot. At the same time this will still guarantee each plots privacy without narrowing walls around the properties. With awareness to the environment and our future we’re currently looking into implementing windmill energy for the whole project, besides the solar system being delivered already. Also new to the project will be the biggest and most beautiful health spa club in Bali. Villa owners will get the 2ndHomes Club Benefit to stay for free in any of the other resorts each year. All together very ambitious plans for a very special high end project that will certainly do its name well. (Bukit Manis means Sweat Hill)
