What are the development zonings of private islands and beaches?

In the paradise islands of Anambas there a 3 main property zonings developers should be aware of .  Each type comes with specific regulations and guidelines, dictating what activities can and cannot be undertaken on the designated land.

1. Forestry (Hutan Produksi): Forestry zones are designated for the sustainable management and utilisation of forests and related resources. The key objective is to ensure long-term ecological balance and maintain biodiversity. Activities allowed in forestry zones typically include sustainable logging, non-timber forest product collection, eco-tourism, and reforestation efforts.
   • What Can Be Done: Sustainable logging, non-destructive harvesting of forest products, eco-tourism (e.g., guided nature walks, bird watching), and reforestation projects to enhance biodiversity.
   • What Can’t Be Done: Permanent conversion to non-forest uses like agriculture or permanent settlements, industrial-scale logging without adherence to sustainable practices.
2. Forestry for Conversion (Hutan Konversi): These zones are designated for potential conversion from forest to non-forest use, typically for agriculture or other development purposes. However, conversion must adhere to specific regulations, and environmental impact assessments are required. The conversion process should consider sustainability and ecological balance.
   • What Can Be Done: Conversion for planned agricultural activities such as plantations, including palm oil, rubber, or other crops, under controlled and approved circumstances with proper permits.
   • What Can’t Be Done: Immediate unrestricted conversion without adhering to the approved plans, uncontrolled land clearing, or activities that damage the environment.
3. Development (Kawasan Penggunaan Lain): Development zones are designated for non-forest uses and development. These areas are meant for various purposes, including industrial, residential, commercial, and infrastructure development. Specific regulations and permits are required for development projects to ensure environmental sustainability.
   • What Can Be Done: Urban and rural development, industrial projects, tourism infrastructure (resorts, hotels), agriculture, mining, and various commercial activities based on zoning regulations and permits.
   • What Can’t Be Done: Unauthorized or illegal development, activities that harm the environment without proper mitigation measures, violating zoning regulations.

Some other important factors to consider are.

• Land can be rezoned, using a 7 step “APL” process.
• All zoning types can be utilised for eco tourism development
• The land certification process and title types vary according to the land zoning
• There are large (sometimes order of magnitude) pricing differences between forestry, forestry for conversion, and development land area

For sophisticated investors the massive difference in land values between zoning types, and the ability to rezone land using the APL process, provides lucrative opportunities.  However rezoning strategies can be expensive and are not zero risk, so ensure you engage with subject matter experts on the process before buying land for rezoning.  For more information, please check out Kepri Estates’ comprehensive Anambas Guide that can be downloaded for offline review at your convenience.  We are also happy to assist with any rezoning enquiries you may have, simply contact us directly at sales@kepriestates.com for more information.

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