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Gov’t releases guidelines for leasing islands for industrial use

The Ministry of Economic Development has published comprehensive guidelines outlining the leasing process for uninhabited islands intended for industrial purposes.

As per the guidelines, out of the 1,800 uninhabited islands, those not designated for specialized use can be leased for industrial ventures. However, islands assigned for tourism development, fisheries, agriculture, or those restricted from business leasing are exempted from industrial leasing.

Furthermore, the guidelines stipulate that local councils are responsible for transferring jurisdiction of the leased islands and registering them as designated for industrial use. The selection of the lessee for industrial islands can be determined through a public tender announcement or by choosing a detailed proposal submitted directly to the government, without a bidding process. Ultimately, the lease must receive approval from the president.

In addition, the Ministry of Economic Development retains the right to impose an acquisition fee for proposals submitted without a bidding process. The amount of this fee will be determined by the Economic Council, taking into account factors such as proposed works, industry nature, and investment amount. The ministry also holds the authority to establish the lease amount and extend the lease period, not exceeding 50 years, upon request. This extension will be granted if at least 75% of the investment is allocated to the island's development, and the project adheres to the designated timeline with at least 75% completion. Any violation of the guidelines may incur a fine, not exceeding USD 65,000.