an entrepreneur shares experience Here are some important tips that you should take note of before starting a business or to put your money in Lombok.
Today, it is often referred to as "the little sister of Bali. But ten years ago, not many tourists know Lombok; it only existed in the shadow of the fame and popularity of its big sister. Things have changed in recent years, however, and since the launch of a new international airport in 2011, tourists have been arriving in Lombok mass . In turn, this led to a growing number of hotel rooms and real estate developments on the island.
Mandalika Resort, ambitious government project to support the local tourism industry, boosted levels of investors, who now come from all over the globe to capture a slice of Lombok tourism mince confidence. Experts say this once peaceful island is now expected to swell in arrivals from oversea. So far, so good. Sounds like a good time to invest, right
This - and the island to win all kinds of prices of halal tourism - is the kind of story you often hear of Lombok. Expat investors with money to burn regularly ask how to jump on the bandwagon of Lombok. More importantly, however, they should try to understand the risks and benefits of putting money in the destination travel back and forth.
Jean-Marc Regnier, founder and CEO of NagaIndo Investment Limited
Jean-Marc Regnier, founder and CEO of NagaIndo Investment Limited , a land and property investment company, shares his thoughts with Indonesia Expat. According Reynier, there are foreign crucial things must be aware before investing or starting a business in Lombok.
Having resided in Hong Kong, Reynier, a French, lived in southern Lombok for more than three years. "I had been personally buy land in Lombok since 2010, and I realized that this small island was still unknown to most of my network near Hong Kong," said Reynier. "I set up a private structure equity that will benefit from the rise of south Lombok as the main tourist destination over the next ten years. We have invested in the large premium land across the south coast, within 30 minutes [the] International airport. We then divide the land, and to offer to investors and support them in terms of service, legal, and more. "
Reynier claims his four-year business had a net return of 25 percent each year since its inception, and is well connected locally. Furthermore NagaIndo, Reynier runs a restaurant and a yoga center on the island, both of which are growing steadily, he said. "We are well established in the region with a roadmap through many activities," he added.
While it encourages investors to join the party in Lombok, Reynier admits that doing business on the island is difficult, especially for expatriates. According to him, there are unwritten rules that foreign contractors must be aware of.
Failure to comply may result in foreign business owners their luggage and go home.
Reynier said one of the most important things to understand is the local culture. "Many foreigners are not able to adjust and adapt to local customs and strong community way of thinking," he said, adding that the local work ethic is low, such as family ties and peace in the community are cultural fundamentals. most often, this means conflict is avoided at all costs, which can lead to delays in projects.
"Getting angry at people or losing your temper is considered unacceptable, too. Everything must be done to preserve the consensus and harmony. So things will never go as fast as you can, and you can lose a lot […] if you get upset with the wrong people, or make them lose face, "says Reynier. "Patience is something you must learn if you want to deal with the people of Lombok."
Outside the understanding of local culture, entrepreneurs are also highly recommended to give back to the community. " most local people are fishermen or farmers. They are not exposed to fast growing companies. They quickly feel that someone [can] accumulate assets and money without giving to the community. You need to mingle with the community as much as you can, and you need to contribute strongly. "
According Reynier, by doing this, foreign entrepreneurs can strengthen the influence of their company on the island, and they will be seen to create positive impacts for the local population. Providing employment opportunities is one of the best ways to contribute. However, entrepreneurs need to be selective, and try to choose well-trained and reliable people. failure to do this can potentially create problems in the future. Reynier shares his experience:
"the bitter example is local security, we 'must use when we open a new project, company or villa. In the case of our great Ashtari restaurant, it was impossible for me to stay awake during the night and [work on] changes. It was impossible for many years to hire foreign, as the local community would complain that we do not contribute locally. We have had cases of theft in storage, where security was clearly involved or passive. It took me two years to be able to hire outsiders with a good relationship with the community and their leaders. It took me over a year to be able to shoot the culprits. Now [the situation] is good, or at least normally operated. "
To achieve the highest level of understanding, expatriate entrepreneurs must invest time and significant expertise in the field. Reynier suggests that foreign entrepreneurs must seek help and advice from other owners 'experienced companies on the island.
"I had the chance to meet Neil and Belinda Tate Developments in my early days, and they were very favorable. their experience is invaluable and they also introduced me to their local network, "he said. Having the experience of living in emerging countries can also help entrepreneurs to understand and quickly adapt to a new culture, like that of Lombok.
Another tip Reynier is to work with well-established residents. According to him, this can save contractors a lot of time and trouble. One of most common roadblocks expatriates hit trying to set up a company in Lombok is ambiguous legal requirements.
Reynier says: "The legal framework is weak and heavy at the same time. Legal proceedings are long enough, and you can go bankrupt by the end of the day. Often you are better off finding an amicable solution, but negotiations here is an art that few people master. "The experience and a strong network that your more established partners are sure to be useful in addressing the legal issues on Lombok, he reiterated.
Overall, Reynier gives advice to expatriates want to invest in the island, "Be humble. Do not think that you know from back home will be effective in an emerging market environment such as Lombok. "
According Tourism Solutions International Power Hotel Lombok expected to rise to more than 4500 rooms by 2022 , supported by continued growth in the number of 'visitor arrivals.