"Not only foreign investors, but also national businessmen are allowed to invest in the islands."
Kupang, East Nusa Tenggara (ANTARA News) - The Indonesian military (TNI) will always safeguard outlying islands towards the southern part of the country, according to a military officer.

The islands include Ndana in the Rote district and Ndao and Batek in the Kupang district, the head of the information centre of the Wirasakti military resort command, Major I Nyoman Arya Jayantara said here.

He was responding to a report that claimed that three islands in East Nusa Tenggara are being leased out to foreigners for 30 years.

The three islands are Bidadari in the Manggarai Barat district, Kepa in the Alor district and Mengudu in the Sumba Timur district. According to the report, Bidadari Island is being leased out to a Briton, Kepa Island to a Frenchman, and Megudu to an Australian.

Frans Kelen, head of investment control at the East Nusa Tenggara provincial investment coordinating board (BKPMD), said that legislation allows the government to lease out uninhabited islands to foreigners.

"The guidelines regarding management of outlying islands are set forth in Law No. 27 of 2007 on the management of coastal areas and small islands and Ministerial Regulation No. 20 of 2005 on the use of small islands," he said.

"The islands can be leased out to foreigners under a concession rights system for 30 years and the contract can be extended. Not only foreign investors, but also national businessmen are allowed to invest in the islands. In principle, the economic potential of the small islands must be empowered without sacrificing the local people`s interests," he added.

He claimed that there will be new economic growth in the islands by doing so.
(Uu.S012/INE/KR-BSR/H-YH)

Editor: Priyambodo RH
Copyright © ANTARA 2012