Indonesia to Host the ASEAN Summit 2023 in Labuan Bajo

 

The 42nd ASEAN Summit will be held in Labuan Bajo, West Manggarai, East Nusa Tenggara, famously known for its breathtaking natural panorama. The main event will be held between the 9th-11th of May 2023.

 

What is ASEAN Summit?

 

The ASEAN Summit is a gathering of leaders from the ten member states of the Association of Southeast Asian Nations (ASEAN) which is held annually to discuss various regional and global issues. This summit is the highest policy-making body of the Southeast Asian nations and aims to promote regional cooperation and integration, economic growth, and peace and stability in the region.

 

The first ASEAN Summit was held in November 1976 in Bali, Indonesia. Since then, ASEAN summits have been held every year, with each member country taking turns to host the event. In 2023, Indonesia will host the ASEAN Summit for the fifth time, with Labuan Bajo being the venue for this prestigious event.

 

 

A meeting between the delegates of ASEAN countries.

Photo by ASEAN 2023

 

ASEAN Summit 2023 Preparation

 

Minister of Tourism and Creative Economy (Menparekraf), Sandiaga Uno, stated that there are 38 hotels, ranging from 5-star to 3-star accommodations, with a total capacity of over 1,500 rooms. Additionally, there are various types of lodging, including homestays, boarding houses, and rental homes, which are becoming increasingly popular among domestic tourists.

 

Sandiaga Uno also mentioned that Live on Board (LOB) accommodations or floating hotels are available as an alternative. There are 26 ships available that can accommodate up to 4,200 people, ranging from traditional Pinisi ships to other tourist ships.

 

 

The unique Phinisi ship will be converted as additional lodgings following the high demand.

Photo by Travel Indonesia

 

The organizer has prepared 20 recommended restaurants and cafes as culinary destinations as well as 40 curated local MSMEs.

 

Labuan Bajo's Komodo Airport has prepared 7 packing stands, 4 narrow-body aircraft, and 2 propeller aircraft, with a passenger terminal area of 14,000 sqm and a capacity of 1.1 million passengers. Garuda Indonesia Airlines offer daily flights, with support from Sultan Hasanuddin Airport Makassar, I Gusti Ngurah Rai Airport Bali, and El Tari Airport Kupang.

 

Labuan Bajo is known for its sunsets and Komodo dragons, with tourist sites and destinations prepared for the 42nd ASEAN Summit. Pedestrian-friendly areas along Soekarno-Hatta Street, the waterfront, and Puncak Waringin cover a 4km route. A Street Carnival People's Party, culinary bazaar, music, and cultural performances will attract 3,000 visitors.

 

 

Pink Beach in Labuan Bajo.

Photo by Afif Ramdhasuna on Unsplash

 

ASEAN Summit 2023 Impacts

 

The visit of 11 ASEAN Heads of State will bring 550 delegates. In addition, there are also committees and officers from related Ministries or Institutions as many as 300-500 people, plus a security force of 1,300 people. These numbers alone will be estimated to bring great economic impacts to the Labuan Bajo locals.

 

It is estimated that around 5 trillion IDR will circulate during the ASEAN Summit. The locals have already experienced a direct benefit from this event, as the accommodations in the area are fully booked in anticipation of the Summit.

 

 

The stunning lagoon in Padar Island of Labuan Bajo.

Photo by Travel Indonesia

 

To accommodate the influx of tourists, locals are making use of their homes and traditional Phinisi ships as lodgings during the summit. Some even stay with their relatives to make their homes available for rental to tourists.

 

112 Labuan Bajo MSMEs have been trained in digital and tourism village marketing by the government and Bank Indonesia. Infrastructure development like Waterfront Marina, Tana Mori, and Puncak Waringin by the private sector also contributes to local tourism. This development will not only benefit the 2023 ASEAN Summit but also improve Labuan Bajo's tourism ecosystem in the long term.

 

This Summit will be a momentum to strengthen tourism and MSMEs in Labuan Bajo as one of Indonesia's 5 Super Priority Tourism Destinations.

 

Summary

 

Overall, the 2023 ASEAN Summit in Labuan Bajo is expected to provide significant benefits to the tourism industry, particularly for the local community. As a government priority for tourism development, Labuan Bajo is expected to experience significant growth in the future, including in the accommodation and rental sectors. 

With the anticipated growth in Labuan Bajo's tourism industry, now is an excellent time to explore investment opportunities in the area. Explore our curated properties in Labuan Bajo which offer excellent potential for investment.

Bali should prepare for an increase of investor & digital nomad after the new Visa

Indonesia finally issued a second-home visa on October 25th 2022 that will last for 10 years. How would Bali respond to the new policy?

 

The new visa will let you stay in Bali for 10 years consecutively

 

The Ministry of Law and Human Rights, Directorate General of Immigration, has recently introduced a new type of visa for foreign nationals called the Second Home Visa Facility. This visa allows foreigners who meet several requirements to stay in Indonesia for up to ten years.

 

This visa is intended for international businessmen or older tourists who want to stay and conduct business in Indonesia for longer.

 

The government intends to implement a non-fiscal stimulus policy to invite said tourists to Indonesia, especially those with large capital and international wealthy individuals.

 

The new 10 years Indonesia visa

will cater best for entrepreneurs and large capital holders

Photo from Freepik

 

The policy, which will come into effect on Christmas 2022, will allow foreigners who obtain this visa to stay in Indonesia for 5-10 years to work, invest and engage in other activities that benefit the Indonesian economy.

 

Visa applications can be submitted online at visa-online.imigrasi.go.id. Applicants must submit several documents, including a national passport valid for at least 36 months and proof of funds in the form of an account held by the applicant or a guarantor with a minimum amount of 2 billion IDR (around 128.000 USD).

 

Applying for a second home visa will cost 3 million IDR (200 USD). The government is confident that the second home visa policy will promote the national economy, especially in Bali, as the Visa on Arrival (VoA) service has proven that it can boost Indonesia’s non-tax revenue.

 

Bali's opportunities after the 10-year visa policy

 

The introduction of the visa corresponds with the strong upswing in tourist arrivals in Indonesia. It will therefore contribute to more opportunities for Bali. At the same time, the upcoming G-20 Summit in Bali in November will bring international attention to the island and welcome tens of thousands of delegates.

 

However, Putu Winastra, head of the Indonesian Association of Travel Agents in Bali, was critical of the new policy.

 

"The second residence visa is given to people who will stay in Bali for a long time. Such visitors do not need us (the tour operators) as they will not stay in hotels," CNA said.

 

This means that there could be a new trend in tourism in Bali, especially in the accommodation sector. For the hotels, this may not sound exciting, but for the villa owners, this change will be a breath of fresh air.

 

Villa will welcome a new demand after Bali’s new visa.

Photo from Bali Home Immo

 

When staying in Bali for a longer period, international visitors who do not live in their home country want a real "second home".

 

As a primary target of the new visa policy, large capital holders will also want to invest and participate in Bali's ever-growing property market. 

 

The new visa policy in Bali also opened the gates for digital nomads to travel and work around the world. As a result, there has been a surge in demand for housing in these countries.

 

Digital nomads will find it easier to work from Bali.

Photo from Unsplash

 

With the increase in demand, there has been a need for a more suitable long-term option for these individuals. Such options are leasehold apartments and loft spaces. These are apartment or loft spaces that are leased out by their owners for a time, ranging from 10 up to 50 years.

 

According to our estimate, this option has become popular among digital nomads because it allows them to stay flexible with their living arrangements and move around as they see fit without having to worry about renting long-term leases on properties they may not use often enough while at the same time they can generate passive income from renting out the properties during their travel.

 

Apartments and lofts offer a more flexible arrangement for digital nomads.

Photo from Bali Home Immo

 

In addition to this, some leasehold properties offer furnished apartments/lofts at competitive rates compared with other types of accommodation such as hotels or hostels where guests usually have limited access.

 

The new 10-year visa coupled with the upcoming G20 Summit will provide a great opportunity for Bali and international visitors alike.

Looking for more villas or apartments in Bali? We provide a curated selection of Bali villas for sale, rentals and land in Canggu, Seminyak, Pererenan, Umalas, Uluwatu, and more. Check out our online catalogue of Bali real estate and follow our social media for more updates.