Selling Land, Shaping Futures: When Westerners buy Indonesian land

Danny Carney
Surfpolitik

As surf tourism spreads along the coastline of the Indonesian archipelago, the influx of foreign money is changing local life in unexpected ways. Surfer and anthropologist Danny Carney explores the issues from an Indonesian point of view.

I will preface this article with this: I am a surf tourist. I am an anthropologist too, but it is surfing that brings me to Indonesia each year. I am not alone in my love affair with the archipelago; thousands of surfers descend on the islands every year. Industries have sprung up to cater specifically to surf tourists and regional economies have been bolstered (at least seasonally) by the foreign capital surf tourism brings to what are often remote areas of Indonesia. Local youngsters have taken to the waves and discovered the joys of surfing, and over the generations a whole culture of surfing has cemented itself at a number of spots along the coast. Beneath the surface much is happening also, and all of it a treasure trove for an anthropologist like myself.

This article is not about the benefits of surf tourism and neither is it about the often cited negative impacts that can accompany the development of surfing tourism: alcohol, drugs and prostitution. Nor is this is not a list of dos and don’ts and it should certainly not be seen as a criticism of anyone wishing to put down roots in the islands. This article presents a situation as it is, on the fringes of surf development in Indonesia. Make of it what you will. All names have been changed.

Selling Land, Shaping Futures

Simon first came to Bayu in 2009. Like many who arrived in those initial years he was taken aback by the set-up. “It’s like Lakeys 20 years ago…” he told me one afternoon as we were sitting on the sand “uncrowded, simple living, none of the bullshit of Bali or Lombok”. It was completely lost on Simon that the first surfers who started to buy and build in his former favourite wave in Sumbawa were once enamoured with the same feelings as he was now. Drunk on paradise, he declared he was going to buy land and live out his days here. Being only 40-years-old Simon had plenty of years left to live out. He pushed ahead, and secured a deal to purchase some land on the hill overlooking the sea for AU$15K.

Pak Jus has lived in Bayu all his life, as did the 14 generations before him. He works as a carpenter in the village and in the market town half an hour to the west. Pak Jus was introduced to Simon by Rudi, who had been told by the owner of the beachside warung that he wanted to buy some land. Pak Jus lives close to the beach with his wife, his two daughters, their husbands and their children. His eldest son is a travelling carpenter, while his youngest is living in a religious boarding school near Malang. Both his sons arrive from time to time and stay for any number of weeks. His sister and brother also live in the same house with their respective families. In total, at peak times, there are 16 people living in the same house. The land he decided to sell to Simon was inherited land from his great-great grandfather and has sat empty for 70 years. It was, at the time, a no brainer. Pak Jus sold the land without much thought.

When the money changed hands between Simon and Pak Jus (literally, he paid in cash) a slametan (the ritual prayer meal of the Javanese) was held to bless the occasion. Simon was exuberant, though completely overwhelmed by the Javanese ritual, not understanding Javanese or Arabic, or Indonesian either for that matter. It is only at this moment that Simon really began to question how much he wanted to live in a small, largely traditional, mostly agrarian village some six hours from the nearest Western amenities.

It was the beginning of the surf season and Simon, an experienced tradesman, invited three of his mates over to help him construct his dream surf pad. Within two months he had a liveable dwelling, and in the years since he has gradually made improvements. It is everything you might imagine a surfer from the south coast of NSW dreams of: a big, palatial shell filled with surfboards and motorbikes, littered all over with empty cigarette packets and duty-free bottles of bourbon. He hosted a circus of mates that season, showing off his new wave and his new village with pride. On more than one occasion he blew the electricity for the entire village while exerting the power of his stereo system, and the ever-changing face of his ‘wife’ did not go unnoticed by the local gossip mill.

Pak Jus returned home, and wisely used the money to pay off the debts owed by his family to unscrupulous lenders who make their fortunes selling motorbikes on credit to those who can least afford it. Debt-free, Pak Jus had $9000 remaining, part of which he used to retile the floor in his house, and the remainder he deposited in a bank account, which he opened explicitly for the purpose, having previously preferred to keep his meagre savings in a tin next to his bed.

Several weeks later a series of events, unfortunate and otherwise, transpired that brought home Pak Jas’s decision to sell his family land. In the first week, Pak Jus’ eldest daughter fell pregnant, followed by his youngest two weeks later. At that time, Pak Jus’ eldest son also broke the news that his wife was pregnant, and had been so for some two months. Pregnancies in Java, as in most places, are a time for celebration. While plans were made for the appropriate slametan, I spoke with Pak Jus candidly about the future.

In short Pak Jus was worried. The money from selling the land had been a great boon, and he was visibly relieved to have freed his family from debt. But he now had an issue he had not foreseen: he had nowhere for his family to live. Traditionally, families in Bayu had ample land which they would use to construct new houses when their families exceeded the capacity of their current household. Such land was usually within ten minutes’ walk from their parents’ home, a quick few minutes by bike. This assured that families bonds were maintained and that the social cohesion of the Javanese village remained in tact while also providing some breathing room for growing families. Pak Jus had removed this option by selling his land to Simon. He now faced a dilemma: continue to live in his already crowded home with an ever-growing family, or organise the purchase of land in a nearby village. Both options frightened him. To purchase land in Bayu itself was impossible, the arrival of surf-tourism pushing up the price of land beyond the reach of local capital.

When the time came, Pak Jus’ daughters made the move with their respective husbands to a village some 30 kilometres away. It is a very modest house, without any of the luxuries of the family home. The familial support networks that are so important in raising a child in Java are sorely missing. The move has taken a toll on the whole family; the brothers feel guilt for taking up residence in the house while the sisters have moved away, the mother feels she has failed her daughters and her grandchildren, Pak Jus feels the weight of the world on his shoulders.

I joined Pak Jus and the rest of his family as they made the 45 minute trip to his daughters’ house for the seven month birth ritual. As we navigated the potholes along the way we went passed Simon’s place. It was empty for the time being, it being the offseason and Simon having returned to Australia for a few months of much needed employment. Had he not sold the land, we would have walked to his daughters’ house that day. This was not lost on Pak Jus, nor the rest of the convoy, all of whom stared at their old land with regretful eyes.

Development continues in Bayu with a similar storyline. Land has been sold at for ever increasing prices. A toothless fisherman and his family last year sold a large parcel of prime land to a developer from Jakarta for AU$60,000. To put that in to perspective, he would have to work his lifetime twice over without spending a cent to equal such an amount. Such wealth would have seemed unimaginable ten years ago. Despite the rapid changes, for most it is a spectator sport and life for the time being is the same. The toothless fishermen still goes to sea as he has done most days for the last 20 years. Pak Jus still tinkers with his bike in between stints of carpentry. It is the next generation that will have to navigate the new version of Bayu, and for the time being, nobody knows what that will be. //DANNY CARNEY

Danny Carney is a researcher at Universitas Gadjah Mada, Jogjakarta, Indonesia and has degrees in Indonesian language and Cultural Studies. He has been exploring the peripheries of surfing tourism and multiculturalism in Indonesia for the last six years, and has spent longer than he cares to remember in the islands. Danny is currently conducting fieldwork in East Java.

Comments

clif's picture
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clif Tuesday, 30 Sep 2014 at 10:25am

Thanks for an enlightening piece of research and writing, Danny.

It would be interesting in the future to read your take on the long list of justifications made by surf tourism developers e.g. employment, sustainability, etc. No independent body currently evaluates the subsequent developments and their claims. There seems to be academic research on surf tourism more broadly. However, an international independent evaluative certifying body is missing. Such a group could evaluate and certify surf tourism businesses and provide regularly updated information for those who use these services to enable more informed choices to be made and the perpetuation of best practice.

nochaser's picture
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nochaser Tuesday, 30 Sep 2014 at 12:33pm

Use the remaining money and carpentry skills and build another level.

shaun's picture
shaun's picture
shaun Tuesday, 30 Sep 2014 at 1:00pm

Or use the rest of the money to get simon blacklisted an unable to get a visa.

Simons a westener he is not allowed to own land, nothing was signed, no documentation.

Thanks for the house Simon, you've had good time, goodbye.

heals's picture
heals's picture
heals Tuesday, 30 Sep 2014 at 1:31pm

Well characterised description, and yet this is the globalised world is it not? A rising plateau of wealth for the majority with pockets of inequality. The winners and the losers. When talking the unsettling effect of foreign capital I could also point out the large percentage of educated Europeans who've settled on Sydney's Northern Beaches and driven house prices up far beyond the Sydney and Australian average. The difference may be that I can make sense of the influx but the result is the same, locals can no longer afford to live there and nor can their children. Families are driven apart because of it.

blindboy's picture
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blindboy Tuesday, 30 Sep 2014 at 3:21pm

Interesting analysis Dan. I have spent quite a bit of time in another part of the archipelago where the villagers got together and decided that no-one would sell, but would lease long term instead. From what I observed it seemed to be working well, the ex-pats had the security necessary to build, but the owners still had the opportunity to reclaim the property down the track or benefit from its increased value. It might not have helped in the situation you describe but as a compromise it seems about right.

rickydev's picture
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rickydev Tuesday, 30 Sep 2014 at 3:30pm

Yeah Simon may think he owns the land and for now maybe he does but its not like owning land in Aus thats for sure and things can change quickly in Java , but wide eyed Aussies taking residents all over Indo have no idea and quite frankly they give me the shits !

Blowin's picture
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Blowin Tuesday, 30 Sep 2014 at 3:35pm

Try convincing the Australian government Blindboy. We could do with less foreign ownership ourselves.

shaun's picture
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shaun Tuesday, 30 Sep 2014 at 5:04pm

Just the way of the western world, that place looks good let's colonise it. The price these people pay for the land, it would be nice if they just gave it back when they croaked it.

nochaser's picture
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nochaser Wednesday, 1 Oct 2014 at 6:25am

Very good article and nice read.

99 year leases are good in that regard if ownership reverts back to the family.

It is very similar what is happening in Sydney with all the illegal foreign ownership our own government policy and the MP's,Senators (and donors) self interests have created a situation where ownership is next to impossible unless you are earning in the top 5% of the country. (in pockets of Sydney)

China has 10,000,000 very wealthy individuals roughly half our population that all want to invest in places with stable government.

richardturner01's picture
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richardturner01 Wednesday, 1 Oct 2014 at 7:00am

Interesting read, appreciate the complexity for the indos. Maybe next you can do an article about how Chinese money is pouring into Australian property and pricing out the locals. ;)

the-roller's picture
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the-roller Wednesday, 1 Oct 2014 at 9:16am

Speaking of "foreigners", doesn't some far away queen, and her family clan pretty much own all of Oz?...

When it comes to land ownership, unlike far too many places, it is always better for the average punter to have a diverse set of owners. It's called opportunity.... Yew!

http://www.businessinsider.com/worlds-biggest-landowners-2011-3?op=1

http://americanvision.org/3033/how-much-land-does-the-federal-government...

indo-dreaming's picture
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indo-dreaming Wednesday, 1 Oct 2014 at 8:41am

Sorry but it doesn't work like that.

In small islands with limited land supply yes this affect is possible.(think Nusa Lembongan, but even NL the price is high not from foreigners buying land for private use but because the land value is upped by its value in use to make money in tourism, of which if we go there we are all a part.

But in an area such as the article deals with Java, then its a big NO, because surfers are interested firstly in land beachfront, then with views of waves, then after that in walking distance, any local that sells can easily sell higher than the true local price and buy in the same area either inland out of walking distance or on an area of coast without a surf spot (over 90% of Java's coast) back at a local price.

Surfers and westerners see value in coastal land because of waves and beaches, but generally speaking outside of tourism areas, coastal land value in Indonesia is not more expensive on the coast, there is no value in a view for them, the value is in how it can be used, etc farmland or crops often the value is even in what is growing on the land more so than the land itself, which can be a win win for locals.

For example some resorts in Mentawais have bought/leased land from locals, the land has only ever been used for coconut farming, the resort buys/leases the land but still allows the previous owner to collect the coconuts, hence being a win win situation for the local.

Take anywhere in Indonesia outside of a heavy tourism area, but still popular with surfers like Lakey peak, Cimaja, Nias etc, yes land prices are high in front of waves because of demand from westerners and the value we see in the land or the value the land has to make money be it local or foreigner, but in all these places even a few hundred metres back or a km or two down the road prices are the same as 20km or 50Km down the road or further and that price is dictated by other factors that have nothing to do with surfers.

Even in the area i assume the article is about (left and right bay, Bayu not true name) the same would be true, yes expensive prices have been payed near the wave or with views of the wave, but that doesn't mean the value of land inland is similar or changed because there is no demand from foreigners for that land.

BTW it should also be noted i believe much of the land in that area is bought up my cashed up Bali surfers.

It should be also noted a tourism push always comes first before foreigners come buying into an area in numbers, and in this case the area was exposed and promoted by a surf camp with magazine articles, not long after I saw locals advertising land online (Facebook), at slightly inflated local type prices but still reasonable.

Regarding the story on how the money is used, I've heard all kinds of similar stories of Indonesians blowing there money, it almost a cliche story on a local selling land in Bali.

But ive also heard positive stories on locals selling high and sharing the wealth with the children to buy houses etc

I also know a local guy who leased his land to westerners who built and run a successful surf resort, now the area is getting popular mostly through the resorts promotion/exposure/push of the area, he is now setting up his own accommodation business on land he has nearby, obviously resort not very happy about that even told him not to do it because it will bring crowds to the area, in which reply was and i totally agree, your kidding me, its okay for you but as a local i cant earn money from surfers.

Also heard many many stories on locals selling there land even houses to fund things like weddings, and other events, medical operations, trips to mecca, and debts of all kinds gambling so its not a thing limited to locals selling to surfers or foreigners.

Also sometimes we think of Indonesians in general as having lots of land, which is far from the truth, most only own tiny 200m2 blocks or less (standard book size in Indo), many own none, many rent, yes some do have the big inherited land thing with the kids getting a bit to build on scenario, but its becoming rarer as time goes on.

Also you often read of how cheap land prices are in Indonesia, truth is they range from western like high in cities, to dirt cheap in almost useless(very dry/stone or swamp) remote land, and then prices at everything in between.

# BTW using the term buy/sell above loosely as most foreigners lease land as only indonesians can buy outright.

PS. sorry i this post is a little bit all over the place, i lost my first post so always harder the second time to rewrite.

I probably should add my wife and I own a couple pieces of real estate throughout Sumatra, all areas of which I'm always hearing of other westerners buying in, but we still get locals coming to us (ringing her parents) wanting to sell there land, only in one area have we seen a substantial rise in prices which is South Sumatra, but we bought in there when there was only two camps at Ombok bocur and one at Secret Sumatra, its more likely the price rise is inked to the new airport, development of surf tourism and the fact that real estate prices in Indonesia in general have been rising due to wage increases and a growing middle class.

We have found the people that are willing/keen to sell are almost always locals that once had connections to these areas then moved away to cities for work, or in one case and old couple who wanted to sell because they feared the risk of a Tsunami and wanted to move/live inland on higher ground.

the-roller's picture
the-roller's picture
the-roller Wednesday, 1 Oct 2014 at 9:41am

Islands, and limited land supply, indodreamer? Even more of a reason to let all people, and all free markets sort it out. The liberty of private ownership!

Perfect example ? ... Hawaii.

Productivity will eventually reach everywhere. Embrace the horror.

neville-beats-buddha's picture
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neville-beats-buddha Wednesday, 1 Oct 2014 at 9:39am

Roller can you fuck off with your always predictable, hard right, Tea Party, might is right, answer to fucking everything. You're an old white man from a country where less than 15% of the population own passports. You know shit about the world but how to protect your own interests. And you're very, very boring.

neville-beats-buddha's picture
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neville-beats-buddha Wednesday, 1 Oct 2014 at 9:40am

Very very boring.

the-roller's picture
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the-roller Wednesday, 1 Oct 2014 at 9:43am

neville-buddha,

hard right? hardly. market based is more like it, bru.

btw, i'm not white. Yew!

neville-beats-buddha's picture
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neville-beats-buddha Wednesday, 1 Oct 2014 at 9:45am
the-roller wrote:

btw, i'm not white. Yew!

Black and white minstrel shows don't count.

the-roller's picture
the-roller's picture
the-roller Wednesday, 1 Oct 2014 at 10:07am

avoid the actual points of discussing and keep on with the personal attacks, neville. it sure seems to fit you like a pair of booties and a hood. Yew!

neville-beats-buddha's picture
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neville-beats-buddha Wednesday, 1 Oct 2014 at 10:13am

Roller's "discussion" begins here:
"Free market, free market"
"Small government is good"
"Obama is a murderous Muslim"
"Send in the army!"
"Corporations will sort it out."
"There's no such thing as society."

Thanks for your open minded reflections.

"Yew!"

kerry1's picture
kerry1's picture
kerry1 Wednesday, 1 Oct 2014 at 10:30am

? that must have come out of left field. No one saw that coming.

heals's picture
heals's picture
heals Wednesday, 1 Oct 2014 at 10:17am

Danny,
In your mind when is it acceptable for bules to buy/lease Indonesian land, under what arrangement? Are there situations (maybe similar to what Indo-Dreaming mentioned above) where you see it being a positive influence.

kerry1's picture
kerry1's picture
kerry1 Wednesday, 1 Oct 2014 at 10:28am

Aghhhh!!! You can have Indonesia. I am Pacific Island hopping to find a piece of land there and build a house. On a Island which will take one hour to drive around the island with more than 20 reef breaks on the Island. When you buy the land you build your house and it is YOURS. Good Luck with Indo rather visit and surf there. Pacific is more laid back.

mk1's picture
mk1's picture
mk1 Wednesday, 1 Oct 2014 at 12:00pm

Can you buy on Stewart Island NZ?

kerry1's picture
kerry1's picture
kerry1 Wednesday, 1 Oct 2014 at 12:37pm

I'm talking Mid to North Pacific rim

mk1's picture
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mk1 Wednesday, 1 Oct 2014 at 12:47pm

Thinking, thinking, western rim? independent country or an island of a larger country?

kerry1's picture
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kerry1 Wednesday, 1 Oct 2014 at 1:01pm

Alright looking at Samoa

mk1's picture
mk1's picture
mk1 Wednesday, 1 Oct 2014 at 1:03pm

Thanks, some mates go regularly and love it. Will keep it in mind for someday down the track

kerry1's picture
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kerry1 Wednesday, 1 Oct 2014 at 1:33pm

Your welcome

the-roller's picture
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the-roller Wednesday, 1 Oct 2014 at 11:58am

Although statists don't dig it, free markets work every single day. Competition is good.

Since government creates nothing without free marketeers excess profits and taxes on wage earners, who would argue in favor of more government? Quite possibly someone who relies on making money from government?

President Obama is really no different than previous Commanders in Chief.

Is the army "sent" in? Or is it a response to actual global breakdowns in diplomacy?

Corporations, small or large. There is no force involved in a purchase. No victims, only volunteers.

Society is not a constant. Live and improve.

Yew!

mk1's picture
mk1's picture
mk1 Wednesday, 1 Oct 2014 at 12:15pm

Roller- your view is particularly myopic. I will see you your individualist free market utopia and raise you a behavioural dystopia.

There is a type of freedom pushed by the libertarian right that holds no higher standards, a vapid mindset where personal freedom is the supreme alter to which all society should attend and any sacrifice is a good sacrifice.

At its best, government is the organised embodiment of the higher aspirations of a society. By all means have free trade within socially acceptable boundaries but be sure that individualism is only one half of the human condition and personal freedom is not the highest order in an infinitely connected world.

thermalben's picture
thermalben's picture
thermalben Wednesday, 1 Oct 2014 at 12:51pm

Can you please stop putting "Yew!" at the end of all of your posts? It's very irritating. kthxbye

shaun's picture
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shaun Thursday, 2 Oct 2014 at 9:39am

How can that be irritating, just edit in ya head. Always get a laugh when someone COMPLAINS SOMEONE IS YELLING CAUSE OF CAPITAL LETTERS. it's not in person so it's not loud.

YOWWIE

blindboy's picture
blindboy's picture
blindboy Wednesday, 1 Oct 2014 at 12:33pm

the-roller would you like to give us an example of a free market? In my limited understanding of economics I have always believed they were impossible. Given that all government actions have impacts on various markets a truly free market could only occur in the absence of government. Are you an anarchist?

the-roller's picture
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the-roller Wednesday, 1 Oct 2014 at 12:42pm

blindboy, i'm a nothing. just like to read it all. what seems to appeal is the more logical thinkers.

free markets?... we live in the best of times. ever. best example would be the money in your own pocket. next time you spend some see if it's a free choice or not.

society. it's an ever changing thing.

&list=PLBDA2E52FB1EF80C9&index=1

mk1's picture
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mk1 Wednesday, 1 Oct 2014 at 1:43pm

The Left see that we are all connected and in this together so work to pull all up together. The Right see that we are all individuals with free choice and logically realise we should give everyone free reign to make their own choices.

Which is "correct"?
>
Define "correct"

blindboy's picture
blindboy's picture
blindboy Wednesday, 1 Oct 2014 at 12:57pm

Well WE might live in the "best of times" but there are now over 50 million refugees in the world who might have other descriptions of the times in which we live.

udo's picture
udo's picture
udo Wednesday, 1 Oct 2014 at 1:10pm

A few issues with foreign ownership of land in Samoa kerry1

stunet's picture
stunet's picture
stunet Wednesday, 1 Oct 2014 at 1:18pm

...and yesterday was the 5th anniversary of the Samoan tsunami. 189 people were killed and many villages flattened on Samoa's south shore. A good mate of mine who's a dirty lurker of these forums - Hey Reg! - has been overseeing the rebuilding of Poutasi village over the last five years. He plans to build there himself but I've no idea what the ownership rights are. Also he's in pretty tight with Joe Annandale, the chief of Poutasi, so maybe that helps?

Perhaps Reg could come out of the shadows and enlighten us.

indo-dreaming's picture
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indo-dreaming Wednesday, 1 Oct 2014 at 1:11pm

BTW @ Dandandan is this coincidence or did you write this article?

goofyfoot's picture
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goofyfoot Wednesday, 1 Oct 2014 at 3:30pm

I was thinking the same thing indo d.
I went to this place last month, amazing place when it's on but lots of times when it's average too.
Not to mention the f$&@:!g boogieboarders!!!

fuhrious's picture
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fuhrious Wednesday, 1 Oct 2014 at 4:56pm

Like Stu indicated myself and some close friends have been active in Samoa since the 2009 Tsunami! We raise independently funds to support our efforts. We initially worked on infrastructure replacement and more recently have focused on raising funds to support Lifeline Samoa and Youth Suicide which is one of the highest rates per capita in the world. No kick start and no Patagonia connection and no motive to acquire land as a result of what we do. Joe the Matai that we primarily support discussed with us opportunities about land and building! Like Indo there are always complications. From what I understand you cannot buy land but only lease and you basically need a sponsor!

neville-beats-buddha's picture
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neville-beats-buddha Wednesday, 1 Oct 2014 at 7:47pm
fuhrious wrote:

No kick start and no Patagonia connection

Calling Shaun to aisle number 4! Shaun to aisle number 4!

shaun's picture
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shaun Wednesday, 1 Oct 2014 at 9:37pm

YEW

prothero's picture
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prothero Wednesday, 1 Oct 2014 at 5:59pm

big government,,,small government, both views have merit, however there are times when the competitive free marketeers fuc the ill informed over, checks and balances need to be put in place to ensure this dosnt happen. Big government to the rescue, but if it gets too big they fuc the ill informed over too....yew

jwesthart1's picture
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jwesthart1 Monday, 6 Oct 2014 at 1:35pm

The Rabbit Proof Fence never ends. So superior we are.