Indonesian authorities have cracked down on a private developer’s bid to carve out foreign tourism enclaves within a marine reserve in the country’s eastern Widi Islands.
The country’s deputy environment minister, Alue Dohong, on Dec. 6 told local TV news that the government had annulled the auction of shares of the Bali-based developer that had the rights to develop tourism facilities in the Widi Islands. A day earlier, the fisheries ministry said that the developer, PT Leadership Islands Indonesia (LII), did not have the permit required to ensure that development in the islands complies with prevailing zoning plans and guarantees economic and ecological benefits. The military has also weighed in, sending in soldiers to hoist the national flag and paint houses on the islands in the red and white of the flag in protest at the reported auction.
“Based on the laws, the Widi Islands cluster cannot be owned by foreigners and is not for sale,” said Victor Gustaaf Manoppo, the fisheries ministry’s director-general of marine spatial planning.
The Guardian reported on Nov. 30 that shares in LII were up for bidding via Sotheby’s Concierge Auctions in New York from Dec. 8-14. The company has sought to develop less than 1% of the rainforest and 0.005% of the entire reserve, with zone restrictions for tourists and limited numbers of visitors. The plan, however, was met with mounting concerns by experts who said it would be essentially selling the islands off to foreigners, which is illegal under Indonesian law.
LII in 2015 signed a memorandum of understanding with local governments to build an eco-resort and luxury residential properties in the Widi Islands. The area is part of a marine protected zone inside the Pacific Coral Triangle, home to the highest diversity of corals and reef fishes anywhere on the planet. The company said the agreement included the rights to develop the area for 35 years with a possible extension of another 20 years.
Indonesia’s home affairs minister, Tito Karnavian, said the developer had seven years to start working on construction, but an apparent lack of funds seems to have prompted it to hold an auction. Tito said foreign investment would be allowed as long as the developer was legally based in Indonesia.