Ecotourism in Indonesia is a new trend that could be the next big thing. Here is a guide on how to start an ecotourism business in the archipelago.
Despite occupying only 1.3 percent of the land surface of the world, Indonesia is one of the richest countries in terms of biodiversity. more than 17,000 islands in the archipelago are home to about 12 percent of the world's mammals, 16 percent of reptiles and amphibians in the world, 17 percent of the world's birds, and 25 percent of world fish population.
The word "ecotourism" is defined as tourism oriented often endangered, exotic, natural environments, in particular to support conservation efforts and wildlife.
Indonesia has huge potential to build its space to local ecotourism, the sector remains largely untapped in the country. At present, there are only a limited number of destinations throughout the country that offer tours and rooms that can be designated as ecotourism.
in mind, there are many potential green investments to be made in the local tourism sector, many of which can be married to the growing demand for green tourism with reduced operating costs.
Lorna Dowson-Collins UK saw the opportunity there for over a decade when she lived in Kalimantan. In 2005, she and her business partner Gaye Thavisin, created a company called Kalimantan Tour Destinations (now known as WOW Borneo), an ecotourism company based in Palangkaraya, Central Kalimantan. Lorna and Gaye pioneer of ecotourism in a part of Indonesia which at the time had no tourism to speak of.
"We shared a passion for Kalimantan and its people with their fascinating culture, beautiful forests of flora and fauna, especially the iconic orangutan," said Lorna in an interview with Indonesia Expat .
the business idea behind Destination Kalimantan turn revolved around the rivers of Kalimantan, which provide access to explore the natural attractions of the island.
"Inspired by all the above, an idea for a social enterprise has emerged. We were going to build a boat that would both attract and transport guests through the beautiful forests and inaccessible villages, and provide comfortable accommodations, "says Lorna.
The boat would bring more business to the villagers who act as guides. The local population, visitors can rent canoes to fishing trips, collect traditional medicines in the jungle, and learn to make the indigenous crafts.
But before commissioning, Dowson-Collins had to learn about the legal procedures related to the establishment of an ecotourism business in Indonesia. Because both Dowson-Collins Thavisin were foreigners, their business should be listed as a foreign investment company incorporated in Indonesia.
Today, the creation of a foreign investment company in Indonesia can be a tricky business. In almost all cases, your company must submit an investment plan about capital Rp.10 billion (US $ 750,000). According to market entry services IndoSight firm, 25 percent of the capital must be paid in advance and deposited in an Indonesian bank account. The company says the application of the minimum capital rule was not in place until 2015, which means it was probably much easier for Kalimantan round destination to hack the red band and set up a company foreign investment in 2005.
legal functionKalimantan Tourism Destination is a water recreation company and the travel agent. It covers the activities as boat owner and operator, tour operator and developer, and as a designer of tourist publications. The owners claim the company is managed in compliance with all local laws relating to employment and taxation in Indonesia.
"We were fortunate during our setup because we had a good lawyer in Jakarta, Pak Suprianto, and the governor at the time urged all departments to help us quickly get permissions" recalls Dowson-Collins.
in order to establish an ecotourism business must obtain a permit from the nature of tourism development. But before you can do this, you must get a letter of recommendation a regional leader in the region (as a governor).
in order to get the recommendation, you must submit a work plan and an analysis of the environmental impact. After getting the recommendation, the founders must submit a proposal to the Environment and the Ministry of Forests. the plan should include a project proposal, pre-planned package tour described, as well as economic and financial analysis. You must also submit a card the area in which you aim to lead the ecotourism business, with a topographic scale of 1 :. 25,000 (the devil is in the detail)
The following document is to present a comprehensive set of data on your business like a business profile, tax documents, bank information and a balance sheet.
Finally, the founders of ecotourism in Indonesia must submit a purchase power agreement. Essentially, this is a contract between two parties, one of which generates electricity and is looking to buy electricity. This part can be difficult if you intend to set up your business in a remote Indonesian jungle that can not yet be on a grid.
The tourists like to visit a Dayak village in Central Kalimantan under WOW tours Borneo Ecotourism | Photos Angela Richardson
Dowson-Collins said to have a strong network in the country will help to smooth most of these processes. "We have built a good relationship and have been supported because people were excited by the idea of our company," she said. "I think I was raised in Indonesia, speaking [the language], love and Indonesia helped develop these ties."
Despite a positive relationship with the government, Dowson-Collins said that she did not receive state subsidies.
in order to raise capital to start their ecotourism company, Dowson-Collins Thavisin entered their business idea into a funded Dutch competition called business in development. the competition sought innovative ideas for business development that benefited local communities and the environment.
of 1,600 participants worldwide, Tourist Destination Kalimantan was one of winners in 2006. the prize money of € 6,000 and helped Thavisin Dowson-Collins cover legal fees in Kalimantan.
"Although we do not receive any subsidy, we were greatly supported by the Governor of Kalimantan central, A. Teras Narang, who launched our newly built boat the Rahai'i Pangun "says Dowson-Collins. "The local tourism department has contributed to the promotion of our company by the agents and the media inviting them to support us."
Fast forward to today. After running an ecotourism business for over a decade, Dowson-Collins and recognize Thavisin have ups and downs. According Dowson-Collins, the biggest challenge in running an ecotourism business in Indonesia is actually the environment itself, which continues to suffer from annual forest fires as a result of oil operations irresponsible palm.
"This has caused our company to close a number of months," she said. "Other challenges are normal business. - Marketing, good staff training, ensuring that we are a responsible employer and bringing benefits to local communities"
Lorna admits that the company faces a additional obstacle of finding a new partner, who can possibly run Kalimantan round destinations when Thavisin and decide to retire.
"Gaye and I will not be able to run the business forever, and the issue of finding a suitable partner or selling the business to someone who shares our values is one that we calls, "she said, adding that in the end, the most important component of running an ecotourism company is passion.
Whatever ecotourism sector founders choose to operate in the co-founders believe
you have to work with passion and make sure that everything you do has a positive impact on people and place.
Dowson-Collins believes Kalimantan Tourist destinations work because of its unwavering commitment to Kalimantan alone, both the setting and the people who live there. She said: "Ecotourism is ultimately about place - environment and people. Without a passion for this, do not even bother. "