In the paradise islands of Anambas the construction costs as a general rule are; $500 per metre for basic timber local style construction, $1,000 per metre for timber construction and western style of fitout and up to $2,000 per metre for high end 5 star resort construction.  The costs will be further influenced by factors such as.

Construction Materials: The materials used greatly affect costs. Local materials tend to be more cost-effective, but high-quality imported materials can increase expenses. Sustainable materials are often preferred to align with eco-resort concepts.

Design Complexity: The intricacy of the resort’s design, including architectural features and landscaping, influences costs. Unique or intricate designs may require specialized labor and materials.

Amenities and Facilities: The range and quality of amenities such as pools, spas, restaurants, and room types impact costs. High-end or luxurious amenities contribute to the overall budget.

Sustainability Initiatives: Implementing eco-friendly features, like solar panels and water-saving systems, has an initial cost but can lead to long-term savings and align with sustainability goals.

Labour Costs: Labour costs in Indonesia are relatively lower compared to many other countries, making it advantageous for construction projects. Skilled and unskilled labour costs are a significant part of the overall budget.

Regulatory Compliance and Permits: Complying with local building codes, permits, and regulations involves costs related to legal procedures, approvals, and ensuring the resort meets required standards.

Infrastructure and Utilities: Provisioning essential utilities like water, electricity, sewage systems, and road access to the resort is part of the development costs.

Contingency and Unexpected Costs: Allocating a portion of the budget for contingencies, unforeseen circumstances, and potential cost overruns during construction is essential.

Project Management and Consultancy Fees: Fees for project management, architecture, engineering, and other consultancy services are important considerations and are typically a percentage of the total construction cost.

Furnishing and Interior Design: Outfitting the resort with furnishings, décor, and interior design elements should be factored into the budget.

Marketing and Pre-Opening Costs: Allocating funds for marketing, pre-opening expenses, promotional events, and initial operating costs is essential to prepare for the resort’s launch and operation.

For more information check out Kepri Estates’ comprehensive Anambas Guide that can be downloaded for offline review at your convenience.

Check out the video below for a deep dive into private island investment due diligence.