There is great controvercy about the issue "Selling Islands to Foreigners" in Indonesia at the moment. This issue was raised in the National Parliament earlier this year after a French expatriate took a down-payment for the sale of "Siloinak Island" in South Siberut after he advertise for some months on www.privateislandsonline.com  

This advertising caused the media storm

The resort on Siloinak Island is not yet processed the licence for operation as covered by PERDA No. 16 - 2002, Kab. Kep. Mentawai.This French man is not a member of MMTA. He appear in local media recently because he reported his partner (who is a traditional land owner) to Mentawai Police. The landowner went to jail twice but has now been release.

This sale was attacked in the National Parliament and media and a high level investigation is going on now. (some delay because of earthquake). The MMTA members who advertise sale of shares in licenced resorts on the same Canadian website have been clear of any wrongdoing. It is illegal to sell or buy Indonesian sovereign territory in any way and islands near international borders are considered especially important for the integrity of national security. The investigation has become wider with illegal foreign use or exploitation of Indonesian resources the target.

The Foreign Flag boat can now operated in Indonesian water only if they provide a bank guarantee = to the value of the ship via their shipping agent with proof handed to Custom department. When the ship depart Indonesia again, the fund can be return. The foreign flag boats must comply by 1 December 2009. Any MMTA members who face this problem should contact to me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

MMTA asks all member to advise their booking agent about this change for 2010 season and after that.

Regard

Nasdion Chalidi SH M.Kn

Legal Advisor MMTA