Overview

The Indonesian public and government were shocked by a recent news story that involved the auction of the Widi Islands in North Maluku through a New-York based auction site. The auction was initiated by PT Leadership Islands Indonesia, which was looking to attract foreign investors in order to manage these islands.[1] In response to this story, the Ministry of Home Affairs has now confirmed that Indonesian islands cannot be sold to foreign parties, although said parties are allowed to undertake investments in the management of Indonesian islands that have potential but that have yet to be managed properly, provided that said investments ultimately benefit the local communities and are carried out in compliance with all of the relevant laws and regulations.[2]