The Covenant (English Version 8)

The Covenant

Bukit Batu Layar – the Hill




Introduction

This covenant is an agreement between owners, leasers and residents on Bukit Batu Layar (known as the Hill). [1]

The purpose of the covenant is to establish a common vision for development on the Hill and to make an agreement amongst the owners on how we will use our land to ensure an attractive, harmonious, safe and sustainable environment for everyone.

The document includes two sections:
a one-page Covenant which spells out the agreement clearly and should be signed by owners, leasers and residents, and
a longer Memorandum of Understanding (MOU) which explains the background and our shared vision for the Hill as well as how we all agree to manage the development.

The document is protected under Indonesian intellectual copyright law and may used only for the sole purpose of describing and making an agreement between landowners on Bukit Batu Layar (known as the Hill) in West Lombok, NTB. [2]

The Covenant

This covenant concerns the management and use of the land situated at Bukit Batu Layar, known as the Hill, in West Lombok, Nusa Tenggara Barat, Indonesia.

This document commits ________________________________________ (name)

who owns and/or leases and/or resides on land at _____________________________________

_____________________________________________________________ (address on the Hill)

to the following key binding agreements. We, the undersigned, agree to the following:

That a maximum of 40% of land will be built on. The remaining 60% plus will be kept as green, landscaped garden, paths, paving or driveways.
That land will not be subdivided to blocks of less than 1,000 M2 (10 are). [3]
That building plans will be shown to all neighbours prior to building to obtain agreement with design characteristics (size, height, materials etc), and that no building will be designed or built which unduly blocks the view of neighbours. [4]
That perimeter walls and fences will be kept to a minimum and that construction, height and style will be agreed with neighbours prior to construction
That where ‘building envelopes’ are designated in a separate ‘Building Envelope Agreement’ buildings will only be constructed on the envelope and will adhere to pre-determined height restrictions where specified for a particular block.
That all waste water from toilets and other sources will be treated through a environmentally appropriate systems before releasing into drains.
That construction of houses and other structures will be completed within a maximum of 15 months after commencement.
That trucks carrying building materials or other items on Jalan Bukit Batu Layar are limited to no more than 5 Tonne.
That blocks, including gardens, buildings and walls, will be maintained in a neat and tidy manner both before and after building.
That all owners and residents will contribute to the routine cost of maintaining shared facilities, including access roads, paths, drains and shared spaces.
That this covenant forms a part of the conditions for purchase of blocks on the Hill and will be signed by the purchaser (and witnessed) at the time of any sale.

Signed by ___________________________________________

in the presence of: _____________________________________ (witnesses)

on _______ / ______ / ____________ (date)


Memorandum of Understanding (MOU)

This Memorandum of Understanding accompanies the Covenant on the land at Bukit Batu Layar (also known as the Hill) located in Batu Layar, West Lombok, Nusa Tenggara Barat, Indonesia. It explains the background and our shared vision for the Hill as well as how the owners, leasers and residents agree to manage the development.

Rationale & legal basis

Bukit Batu Layar, or ‘the Hill’, is a new and growing international community near Senggigi in West Lombok, Indonesia. The Hill is being developed privately as a high quality residential area by a group of expatriates and locals.

The purpose of this covenant is to establish a common vision for development on the Hill and to make an agreement amongst the owners on how we will use our land to ensure an attractive, harmonious, safe and sustainable environment for everyone.

There is no corporate body responsible for the development of the Hill. The ownership as well as responsibilities of management and maintenance of the areas and facilities within the development area generally belong to the property owners. Maintenance of shared facilities is based on the ‘user pays’ principle.

This covenant and with it the MOU is based on mutual trust.[5] If everyone agrees to the covenant and the MOU and acts accordingly we will all benefit from a more pleasant and healthy environment - and increased land values giving a better return on investments. Our vision is for a clean, green and socially responsible community. We want Bukit Batu Layar to be a special place.[6]

Background

The island of Lombok lies just to the east of Bali and is known for its traditional mix of Sasak and Balinese culture, its superb beaches and laid-back lifestyle, and Mount Rinjani, the highest volcano in Indonesia. Bukit Batu Layar, or ‘the Hill’, overlooks the coast near Senggigi in West Lombok.

In 2000, attracted by the outstanding views and fresh air, a small group of expatriates began individually acquiring blocks of land up the hill which is now known a Bukit Batu Layar or, simply, ‘the Hill’. The land was mainly in local hands, almost none of it certificated by the government. Purchasing meant learning the local land laws along with local customs and ways of doing things. Some was owned by Sasak farmers, some by Balinese communities (banjar) and one or two blocks by local Chinese investors. As each block was purchased we went through the process of legally establishing ownership and obtaining a freehold title under Indonesian law.

The land is of marginal value for agriculture. Most was used for cultivating coconut palms, bamboo, mango or cassava. Local cattle and goats graze on the slopes. Many of those who sold have now bought land that is cheaper and more suitable for farming elsewhere. And the villagers who still farm and live on the higher slopes now have a road and some access to water two kilometres up the hill, where previously there was none. Many have been employed in the development and many more will be employed in the future.

The original group of individuals who took the risk in acquiring land, gaining approvals and building the road and drainage has now been joined by others who have bought on the Hill. Most of these helped fund the final upgrading of the main access road. There are now Belgian, German, Irish, Australian, British, American, French, Danish, Japanese, Singaporean and local Indonesians buying and building on ‘the Hill’.

From the outset the core group agreed on a concept for the development of the Hill. We all wanted essentially the same thing: a sensitively developed environment which is clean and green and where both the natural environment and social context are respected. We found a local contractor who understood our collective needs and together designed and built a well-engineered road system with proper drainage and attractive planting.

At the same time, every block has been bought and is owned individually. There is no corporate body – so what is emerging is a community of individuals and families who loosely share a vision for good living. An international community in Lombok.

We all contribute to the modest costs of cleaning and maintaining the road and drains. Electricity is now available with cabling along the road - and underground for some top blocks. Some blocks have water.[7] Others are putting in bores. Telephone and internet access is not a problem; ‘Flexi’ phone technology dispenses with the need for cables.

A number of architect-designed tropical villas have appeared on the Hill in the last year or two and more are planned. Open air living, with open-to-sky rooms and ‘infinity pools’ making the most of the views and cool breezes is becoming the norm. Roofs are tiled, shingled or thatched with local alang-alang grass. Each home is an individual expression. Each is the product of local craftsmanship. Some have built holiday villas, some family homes and some small bungalows for short-term rental. And for those who have not yet built – there is always the option of putting up a baruqa; a small, open-sided and thatched structure where you can relax in the local way and enjoy the view.

Much of the land is terraced and planted with green ground covers – vetiver grass and Singapore daisy. Some blocks retain the slope of the hill and the original planting. Shady rain-trees, royal palms and bamboo hedges now line the road. A green system for filtering waste water into planted ponds which will double as bird refuges is planned.

The purpose of this covenant is not to restrict the independence of residents and developers, or to impose unnecessary rules and regulations – there are probably enough of those already and we welcome diversity. The purpose is to help clarify our agreement and ensure that we all benefit from sensitive and harmonious development of the Hill.


Principles

By signing this covenant we agree to the following principles as the basis for our development. We want our community to be:

Attractive and well maintained
Safe, secure & healthy
Environmentally sustainable
Socially responsible, culturally diverse, cooperative & friendly

In order to achieve this, we agree to the following:


Attractive & well maintained

Building
We will share building plans with all neighbours prior to building to obtain a consensus in agreement with design characteristics (size, height, materials etc). Note that Indonesian law requires builders to obtain signed consent from neighbours in order to be given a building licence from the government (IMB).
We will design and construct dwellings and other structures which are attractive and blend in with the landscape
We will not construct buildings, walls or other structures that unduly obstruct or spoil the views of other residents. Where ‘building envelopes’ are designated buildings will only be constructed on the envelope and will adhere to pre-determined height restrictions where specified for a particular block.
Construction of houses and other structures must be completed within 12 months of commencement. An extension of 3 months may be allowed if required.
Blocks will be maintained to a respectable level pre and post building. This includes garden and building maintenance.
Trucks bringing up building materials are limited to no more than 5 Tonne.
Consideration will be given to underground /beneath house water storage from roof rain.
Security is best provided by developing good relations with neighbours and local community. Perimeter walls or fences should be kept to a minimum and construction, height and style must be agreed with neighbours.
Natural landscaping
We will use natural landscaping and will maintain green areas on our property.
Density
We will build on a maximum of 40% of the land, leaving at least 60% green.
We will not construct more than one main dwelling per 10 are (1,000 M2 or .1 of a hectare)
We will not subdivide blocks to less than 10 are (1,000 M2 or .1 of a hectare)
Maintenance of shared facilities
We will contribute to the maintenance of shared facilities, including access roads, paths, drains and shared spaces.[8]
We will not place signs or advertising on the road – aside from modest, tasteful entrance signs

Safe, secure & healthy

Security
We will contribute to security by
employing trustworthy security personnel, or
contributing to the cost of employing trustworthy security personnel with neighbours
providing and maintaining street lighting in front of our property and ensuring that it is turned on each night
maintaining any shared perimeter fencing on the border of the property
developing good relations with neighbours and local community
Healthy living
We will encourage the use of roads and pathways for walking, we will help to maintain these
We will keep our property and adjacent drains clean and will endeavour to eliminate breeding of mosquitoes, flies and rodents
We will not litter and will help keep the neighbourhood clean by composting, burying or burning garbage, including from the street
Safety
We will provide enough off-street parking so that vehicles are not parked on the road and we will encourage safe driving





Environmentally sustainable

Land care
We will ensure that terracing and building on steep land is well designed and constructed to prevent the risk of land-slip or erosion
We will ensure that erosion does not occur by building and maintaining storm-water drains and by planting, such as with vetiver grass, to stabilize steep slopes
Planting and gardening
We will maintain green areas (min. 60% of land area), eliminate weeds (invasive species), and plant and maintain trees and shrubs – especially those which attract local birds, butterflies and wildlife
Water quality and usage
We will maintain the quality of run-off water; we will treat or filter all waste water either through green or conventional systems before releasing into storm-water drains
We will ensure that treatment of sewage is effective. This may involve the use of ‘green’ systems
We will avoid the use of chemical fertilizers, pesticides or other contaminants which may cause harm to the environment
We will conserve and use water as efficiently as possible, for example by collecting rainwater for irrigating gardens or household use
Building and energy use
We will design and construct buildings which are energy efficient
Where possible we will use local materials and recycled or plantation timber
We will minimize energy consumption and will consider the use of renewable energy sources (such as solar and wind power)
Waste management & pollution
We will reduce waste by recycling, composting and other means and will dispose of waste in environmentally appropriate ways
We will maintain air quality by minimizing burning of rubbish and doing so at times that will not be annoying to others
Transport
We will encourage the use of efficient transport such as bikes, mini-bus and walking (and hang-gliding?)

Socially responsible, culturally diverse, cooperative and friendly

Community relations
We will support the local community, especially local families living on the hill and in neighbouring villages, for example by providing employment and training in such fields as gardening, house-help, child-care and security
We will abide by local laws and will promote good relations with local authorities
Cultural diversity
We will respect the diverse cultures within the international community on the Hill and encourage religious and cultural diversity
We will respect the local cultures (Sasak and Balinese) and will promote cultural, ethnic and religious tolerance
Land use
We will respect the residential nature of the community and will not engage in businesses or activities which negatively impact on the use of the Hill as a living space
We may use land for home gardening, producing vegetables, fruit or raising animals or fouls for domestic use where this does not interfere with others
Neighbourliness
We will be good neighbours by
respecting the privacy and rights of others
not making too much noise
helping maintain security by notifying neighbours of any suspicious behaviour
endeavouring to resolve any conflicts in peaceful, respectful and amicable ways

Sustainability

We will include this covenant as a condition of purchase for any future buyers.


References

2005: Audubon International, Principles for Sustainable Resource Management (Revised February 2005)

2007: US Environmental Protection Agency, Check List for a Green Community (Oct 2007)

2007: U.S. Green Building Council. LEED for Neighborhood Development Rating System (Pilot Version developed through a partnership of the Congress for New Urbanism, Natural Resources Defense Council and the U.S. Green Building Council)

2006: Wolferstans Solicitors, Plymouth, Devon. http://www.wolferstans.com/branch/editorial-consents.php



[1] This document is also available translated into Indonesian. Differences in interpretation will be settled by reference to this original English document. (Draft 8)
[2] © Mark Heyward, Batu Layar, 2008
[3] This clause does not apply where land was subdivided (certificated) prior to this covenant being signed.
[4] Note that Indonesian law requires builders to obtain signed consent from neighbours in order to be given a building licence from the government (IMB).
[5] Once a covenant is agreed to by all owners it may be possible to formalize it under Indonesian law. The concept of a covenant is common under English law. Most title deeds contain covenants, the purpose of which is to protect the character and amenity of an area. A covenant is a rule affecting a property. A covenant can be a positive covenant, in other words a covenant to do something, for example, to maintain a fence, or, a negative, otherwise known as a restrictive covenant not to do something, for example, not to cause a nuisance or annoyance to adjoining landowners. The wording of a restrictive covenant may allow the act as long as the written consent of a certain party is obtained (a ‘qualified’ covenant).
[6] Ultimately we may be able to seek certification for our development as a ‘green community’. There are a number of options for such certification. This depends on the residents.
[7] Water and electricity connections (with below-ground cabling) are currently available for some blocks near the top of the development through a private arrangement with one of the original developers who invested in this infrastructure.
[8] The main access road was built and paid for privately but is open for public use. Some smaller access roads running off the main road were also built and paid for privately and are privately owned. Construction of all drainage and the initial electricity access was paid for privately. For the time being if we want to have well-maintained roads and drains we cannot rely on the government. Whether the roads are public or private we should maintain them ourselves as a group of users. Details will be worked out from time to time depending on who takes responsibility for managing this. It is possible that some formal structure may emerge in the future to manage shared facilities such as roads and drains, but this has not happened yet.