Kura Kura Bali SEZ: A Visionary Approach to Sustainable Tourism and Creative Economy Development | May 2023
(Lessons learned from the Kura Kura Bali SEZ Application Process)
The journey towards securing Special Economic Zone (SEZ) status for Kura Kura Bali was a challenging yet gratifying endeavor. The hard work paid off when Kura Kura Bali officially received its designation as a Tourism SEZ on the 5 April 2023 under Government Regulation No. 23/2023. As a trusted advisory service provider, TOWNLAND learned a number of valuable lessons throughout the process. In this article, we are excited to share some insights gained from numerous meetings and coordination with Government Agencies, extensive discussions with Stakeholders and the formulation of a comprehensive SEZ strategy, which ultimately led us to successfully assisting our Client in obtaining the much coveted SEZ status for the Project.
Setting the Stage
Nestled on the captivating 498-hectare Island in Denpasar, Bali, just a 15-minute journey from Ngurah Rai International Airport, Kura Kura Bali holds tremendous promise for sustainable tourism and creative economy development. Kura-Kura Bali is envisioned to feature several key components, including Six-star Hotels, a World-class Commercial Center incorporating Balinese local wisdom and culture, an International School and a range of luxurious Residential options. A key component of the Development is an integrated Marina inspired by the success of the Port of Hercules in Monaco, which aims to attract ultra-high-net-worth individuals and to generate sustainable revenue while preserving the Island’s environment.
To turn this ambitious Vision into a tangible reality, the dedicated team at TOWNLAND embarked on a rigorous process marked by close collaboration with Government agencies, extensive stakeholder engagement and the formulation of a Strategic SEZ Plan Proposal. Our primary objectives revolved around ensuring the timely delivery of the Application Package, preparing a comprehensive Financial Feasibility Document and securing vital support from the Government and relevant Agencies.
Government Collaboration: A Key Ingredient for Success
Achieving the SEZ designation for Kura Kura Bali required close cooperation with various Government Entities and Agencies to compile a fully compliant SEZ application package, aligning with the stipulations outlined in Government Regulation No. 40/2021. Through a series of meetings, we navigated the complexities of regulations, assisted the Client in obtaining necessary permits and addressed any challenges that arose. This experience emphasized the importance of fostering strong relationships with Government officials, leveraging their expertise, and aligning our objectives with National and Local Development Goals.
Stakeholder Engagement: Shaping the Vision
A vital lesson we gleaned from the Kura Kura Bali SEZ process was the pivotal role of stakeholder engagement. Through extensive discussions with the Client’s Team, Business Investors and Local Communities, we ensured that their perspectives were carefully considered and incorporated into the Project’s overarching vision and reflected in the Application Documents. This collaborative approach allowed us to develop a strategy for sustainable tourism and for a creative economy that genuinely captures the aspirations and requirements of Stakeholders. It is important to note that the Government sought a robust Action Plan outlining the strategy for SEZ implementation in the first years, with active participation and commitment from all Stakeholders involved.
Financial and Economic Feasibility: Emphasizing Strategic Partnerships
Strategic Partnerships with Private Investors were crucial in convincing the Government as well as to ensure the financial and economic feasibility of the Project, which is expected to attract IDR 104 trillion in investment and generate around 35,000 direct and 64,000 indirect jobs over the next 30 years in the tourism and creative industries.
A comprehensive Feasibility Study which aligned with our Client’s business strategy was presented to convince the Government and its Agencies that the project was economically viable and could be delivered within a specific timeframe. This approach emphasized the importance of identifying synergistic opportunities and forging partnerships to align objectives and ensure long-term economic success, which was set out in a Commitment Letter / MoU to complete the application package.
The pursuit of the Kura Kura Bali SEZ Designation demonstrates the effectiveness of collaboration, stakeholder engagement, and strategic planning. Extensive meetings with Government Agencies and the active involvement of Stakeholders played a crucial role in realizing our Client’s vision for a sustainable tourism and creative economy based Development. The successful completion of the SEZ Application Package for Kura Kura Bali is a testament to the valuable lessons learned throughout the SEZ process, offering a guiding example for future developers seeking similar achievements in the SEZ domain.
At TOWNLAND, we are pleased to have played a pivotal role as an advisory service provider to secure the SEZ title for Kura Kura Bali. Our industry knowledge, regulatory expertise, and strategic guidance, as well as local presence and market understanding through our long established base in Jakarta, were instrumental in streamlining processes, identifying opportunities, and mitigating potential risks. With our assistance, our Client successfully navigated the complexities of the project and achieved their goals.