Announcement

Collapse
No announcement yet.

Need Advice on Renting restaurant on Gili Air

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Need Advice on Renting restaurant on Gili Air

    Hi everyone. I'm new to here.

    I am just about to sign a rental agreement on a property that has a restaurant and 4 bungalows in Gili Air.
    Im doing it through Blue water real estate who is on the gili islands and they have had the contract put the Heather but the local notaries in Mataram.

    Does anyone know of Blue Water real estate or worked with them before?

    And it is being put together by the lawyers at the notary office, do I still need to get a lawyer to look it over?

    Also does anyone know if there are any mafia on gili air? Will I have to pay bribes, facilitation bribes to anyone just to operate a business there? Or is it free from that?

    Would love to know you thoughts and if anyone has anyone they would recommend calling to discuss this further.

    Kind regards
    Chris from New Zealand

  • #2
    I would suggest an independent lawyer ,perhaps in bali ,to check the contract to make sure everything is above board ,and all the correct licensesĀ  are in place pondok wisata etc ,I heard there is a water mafia operating in the gilies as there is a shortage of fresh water ,I dont know if still exists . Be super careful b4 you sign ,thats my advice .

    Comment


    • #3
      I certainly hope that your due diligence effort is more thorough and better informed than you initial post suggests. If you have no long term experience living in and doing business in Indonesia, do not have a working command of the language and are a novice when it comes to the culture, the prospects of a successful entrepreneurial venture I would describe as marginal.

      Comment


      • #4
        Originally posted by Kayaker89 View Post
        (1) ... Does anyone know of Blue Water real estate or worked with them before?

        (2) ... , do I still need to get a lawyer to look it over?

        (3) Also does anyone know if there are any mafia on gili air?

        (4) Will I have to pay bribes, facilitation bribes to anyone just to operate a business there? Or is it free from that? ...

        Chris from New Zealand

        (1) In more than 10 years in this Forum I never heard of it before . Did check in the internet , found very little information about it .

        (2) Probably yes .

        (3) I don't know .

        (4) I don't know about the bribes but I do know that , assuming you are a citizen of New Zealand , to operate a business there you first need to set up a business company of the type "PT PMA" (minimum investment of Rp10 Billion - better talk to BKPM to know if your business plan is acceptable) . Plus , if you intend to work in it you will need a Work Permit + a Work Visa/KITAS , or to just participate in sporadic meetings of the company , then you will need an Investor Visa/KITAS instead .


        http://www4.bkpm.go.id/contents/home/ (BKPM : one roof Indonesian Government service for foreign investors)

        http://www.expat.or.id/business/business.html (about business in Indonesia)

        http://www.livinginindonesiaforum.or...311#post254311 (Business/PMA : references , agents )
        Last edited by marcus; 13-08-19, 18:10.

        Comment


        • #5
          Thank you very much for your time everyone. Much appreciated.

          I have spent a few months travelling in Indonesia and understand some culture and a few words of language. I know I have a lot to learn on all fronts and this would be my place to start. I have to start somewhere. I've spent a couple of years in Asia total. And most of the last few years in the developing world, and the rest of the time I work in Antarctica teaching extreme survival skills.

          New to business and partnered with someone who has a master's in entrepreneurship and a similar background of adventure (From NZ)

          So that's a bit more about me.

          Can anyone recommend a lawyer to contact in the Lombok area?

          At this stage I am going off a lot of what the real estate agent is telling me and due to my geographical distance from the island I don't have a lot of choice.

          From what I have been told I probably don't have to set up a business company in Indonesia as it's not a large business. Just a small restaurant and 4 bungalows. Is that correct or will I have to set up the company because I am aware that is expensive. We plan on setting up a company in NZ and have them as a foreign owner of the property on Gili Air.
          I understand that I can supervise work on a normal travel visa and have to hire locals to do the actual work which I'm fine with.

          The rent on the property is 105 000 000 per year and he wants 4 years rent now and 4 more years paid in one year. Again does that sound normal?

          I have the money needed for the first payment.

          I would love to know more and appreciate you time to message me.

          Kind regards..

          Chris


          ​​​​





          Comment


          • #6
            Originally posted by Kayaker89 View Post
            (a) ... Can anyone recommend a lawyer to contact in the Lombok area? ...

            (b) From what I have been told I probably don't have to set up a business company in Indonesia as it's not a large business. Just a small restaurant and 4 bungalows. Is that correct or will I have to set up the company ...

            (c) We plan on setting up a company in NZ and have them as a foreign owner of the property on Gili Air.

            (d) I understand that I can supervise work on a normal travel visa and have to hire locals to do the actual work which I'm fine with.

            (e) The rent on the property is 105 000 000 per year and he wants 4 years rent now and 4 more years paid in one year. Again does that sound normal? ...

            (a) I don't know any .

            (b) Well , I know some basic things from few Indonesian Laws & Regulations but your case is not normal so I can't tell you much . I guess your plan is a kind of informal illegal business .
            As I said , in a legal way foreigners can only own Indonesian PT PMA(s) . Small & medium businesses in Indonesia can only be owned by Indonesians .

            (c) Not legally possible from the Indonesian side as I said above .

            (d) There is no Indonesian "Travel Visa" . The only Indonesian Visa that allows a foreigner to work (even if only one hour work) is what we call Work Visa , which is very restrictive and in my view you would not be eligible for it (because you said you work in "extreme survival skills" , so you cannot do any work in Indonesia related to restaurant and bungalows) . Indonesian Work Visa in relation to your case is only issued for work expert to do work related to the foreigner's experience .
            One could say , it is only for a short time and could be done secretly . But be informed that illegal work is considered a crime in Indonesia (up to 5 years in jail) .

            (e) In Indonesia I only know about normal house/apartment rent contract : usually for one year period , paid in advance .


            -------------------------------------------


            I am not a business specialist , but what comes to my mind now that can be (maybe) one Indonesian legal option for your plan is (but I personally would not do this way either) :
            - you hire an Indonesian expert to select/supervise a small Indonesian business to "run" the restaurant and bungalows for you , and
            - your New Zealand's business makes a business agreement/contract with this small Indonesian business and another contract with the Indonesian expert .
            Last edited by marcus; 14-08-19, 11:37.

            Comment


            • #7
              Oh Just to clarify my plan/hope a little more too.

              I would spend some time on the island renovating and getting the restaurant and accommodation up and running to a high standard. But the long term plan would be to hire a local manager and staff to run it. I don't plan to spend a lot of time on the island if that makes sense. I understand a lot of the businesses on the gili islands are run like this.

              Is that a realistic goal?

              I understand that some money may go missing here and there's and I would implement systems to minimise that.

              Comment


              • #8
                "I understand a lot of the businesses on the Gili Islands are run like this." I am guessing the owner or the agent or both are the likely sources of this self-serving, and probably untrue, assessment. Beyond that, a small business, especially a restaurant, is difficult to manage successfully and essentially impossible at arm's length. Talk to three or four independent small restaurant operator/owners in NZ about your plan; if they all say, "Ya, that sounds doable," then things have changed since I was in the hospitality business.

                Comment


                • #9
                  In few words , my personal advice to you Chris : forget about it !

                  I have nothing more to tell you about this subject .
                  Last edited by marcus; 14-08-19, 11:33.

                  Comment


                  • #10
                    Oh Just to clarify my plan/hope a little more too.

                    I would spend some time on the island renovating and getting the restaurant and accommodation up and running to a high standard. But the long term plan would be to hire a local manager and staff to run it. I don't plan to spend a lot of time on the island if that makes sense.

                    So you would be working illegally ? ,you know the penalties for that ?

                    Bali and the surrounding islands is full of storiesĀ  of foreigners "losing their shirt" and those people are here legally working ,by not being here to supervise I think you could lose everything ,ya your choice

                    Comment


                    • #11
                      No worries at all thank you very much everyone for your advice and I will not be signing anything at this stage.
                      much appreciated!

                      Comment

                      Working...
                      X