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Introduction – General Considerations |
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BaliTeakFarms has carried out research on setting up teak tree farming
operations in Bali. In this memo, we have outlined terms and conditions
for different sites, both on freehold land and on leased land. Sites
range from 2 hectares to 120 hectares. For some of these projects, BTF
is considering also the possibility of blending teak with other faster
growing species of trees, notably acacia (locally know as “sengon”), which is in high demand by the local wood carving industry. See note below on acacia tree farming.
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| Left: three months Jati Emas Thailand seedlings in Bali |
BTF Director Sayu with seven year old Jati Emas Thailand near Campuan |
Freehold v. Leasehold
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analysis carried out below indicates that one of the key items is the
price of the land, since all other costs of teak farming are
essentially the same: on one side, the use of leased land allows the
highest yield from the teak farming business; however, the use of
freehold land allows for a potentially extremely significant equity
upside, such upside being more significant where the land has been
selected not only for its teak farming characteristics, but also with a
view to positioning for possible long term real estate development.
Moreover, the combination of medium-long term (15-25 years) teak
farming operation with a well selected real estate investment offers
the highest possible security to the investor, allowing the balancing,
and respective hedging of two different types of investments. |
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Read more...
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THE KUBU TEAK REFORESTATION PROJECT IN NORTH EAST BALI (Karangasem) |
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Kubu is located on the North coast of Bali in Karangasem, and its area
runs generally from the coast (about 30 minutes by car from Amed,
driving towards Singaraja) all the way up along Mount Agung. It is a
barren area, with little or no vegetation, which suffers form the lack
of water availability for farming. |
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Read more...
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We have identified two very interesting sites in Tajun, Tajun #1 and
Tajun #2. The Tajun Teak Farms Projects combine teak farming business
operation with the potential equity upside of a successful real estate
investment. Tajun is approximately 20 minutes drive North of Kintamani,
i.e. going down the road towards Lovina. |
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Read more...
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SENGANAN 10 HECTARES 25 YEARS LEASE |
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The Senganan Teak Farm Project represents a very profitable teak
farming business operation; however, it has no potential real estate
equity upside since it the land is contracted for 25 years. The lower
cost of the land generates a higher yield for the teak farming
operation, although there is no land appreciation potential. |
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BERANGBAN – NEGARA (WEST BALI) |
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We have seen and have documentation (certificates) for a 7.5 hectares
lot @ Rp. 2,2 million per are (negotiable). Land is very steep.
Location good for teak, very beautiful specimens observed in this area,
although none appear properly managed. |
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MANISTUTU (JEMBRANA, NEGARA)10 HECTARES FREEHOLD |
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The Manistutu Teak Farm Project combines a very profitable teak farming
business operation with potential real estate equity upside. The lower
cost of the land generates a higher yield for the teal farming
operation, although the land appreciation potential is much more
limited, compared to the Lovina Project. |
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WANGAYA (PENEBEL, TABANAN) 10 HECTARES FREEHOLD |
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The Wanagaya Teak Farm Project combines a very profitable teak farming
business operation with potential real estate equity upside. The lower
cost of the land generates a higher yield for the teal farming
operation, although the land appreciation potential is somewhat more
limited, compared to the Lovina Project. |
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Read more...
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LOVINA 10 HECTARES FREEHOLD TEAK FARM |
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The Lovina Teak Farm Project combines a very profitable teak farming
business operation with the potential equity upside of a successful
real estate investment. This land site is relatively more expensive,
but has been selected for it very high potential appreciation as a
resort location, being located in the Lovina area and controlling
dramatic 180 degree ocean views of the entire North Coast of Bali. |
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