More than 100 tropical islands in the Widi Islands, North Maluku, Indonesia, will be auctioned from 8 to 14 December in New York by PT Leadership Islands Indonesia (LII).
PT LII is an Indonesian development company that has licensed the rights to build eco-friendly resorts and luxury residential properties.
Minister of Home Affairs Tito Karnavian explained that PT LII had signed an MoU or cooperation agreement with the local district head and the governor to develop the islands in 2015.
“PT LII will transform the area into eco-tourism, which is good in my opinion, rather than being left vacant,” said Tito in an interview at his office on Monday (5 December).
Tito further explained that the lack of funds for development had stalled the project, and the company had not been able to fulfil the promise. Therefore, the islands will be sold through Sotheby’s Concierge Auctions Global Sale to foreign citizens.
However, the sale of islands to non-Indonesians is prohibited under Indonesian law.
Therefore, the buyer will bid for shares in the company.
PT LII spokesperson Okki Soebagio explained that the company has prepared a master plan and architectural designs and obtained permits to run a business in the Widi Islands, which will become a sustainable tourism destination.
Okki said PT LII has obtained more than 30 permits, approvals, and recommendations from several government agencies, as well as carried out community outreach activities and played an active role for several years in the process of assigning the Widi Islands as a Marine Protected Area (KKP).
However, Director General of Maritime Spatial Management of the Ministry of Maritime Affairs and Fisheries Victor Gustaaf Manoppo told the local media on Monday that the company has not yet obtained the suitability approval for marine space utilisation activities (PKKPRL).
PKKPRL is a condition that must be met by beneficiaries when they want to carry out activities to settle in the sea space, both in coastal areas and small islands.
Victor emphasised that the Widi Islands belong to Indonesia and is protected by laws and regulations. The statement also responds to reports that the islands in the Widi Islands will be auctioned off, as written on the auction site.
“Based on statutory regulations, the Widi Islands group cannot be owned by foreigners and cannot be traded,” he stated.
The islands for sale are one of the most intact coral atoll ecosystems remaining on Earth. Hence, the auction has raised concern among some conservationists who say the development could cut off local communities and threaten the ecosystems of rainforests, mangroves, lagoons, lakes and coral reefs that are home to the vast marine life.
National coordinator of Destructive Fishing Watch Indonesia Mohamad Abdi Suhufan has asked the Indonesian government to investigate the sale of the islands. According to him, the sale of the islands has caused controversy and attracted the attention of the Indonesian public.
He said that although the development was planned for environmental protection, private ownership of the islands would impact the local community socially and economically. For example, this will have an impact on the fishing grounds for fishermen that have been used for generations
“The social impact of this plan will offset the environmental benefits,” he stressed.
