The colorful cottages of Mirroliz Pelangi definitely look the most fun on all of Derawan. There are a few more expensive and modern options on the island, like the Dive Resort, which probably have more amenities (like, um, a toilet seat - which M. Pelangi does not have), but if you're a backpacker, a patient traveler, or just looking for a simple experience, this is a great place to be. The beds and rooms were fine, sufficient, food was good, and the beer was cold.
Toni and the staff were all really wonderful and friendly and will rent snorkel equipment and arrange for day trips to the other islands like Kakaban and Sangalaki.
Just remember that this is Indonesia, and this is a small island, where, as the Lonely Planet puts it, "time seems to barely run at all." That means that everything will take a lot longer than you might think (when we ordered a to-go lunch at a warung nearby, the woman chastised us for wanting it immediately, saying that we should have ordered two hours early). That attitude also means that although we had reserved two rooms, when some of our friends arrived much later, that second room was already rented out. Toni was really apologetic about it, but nothing could be done. In the end we paid to have an extra mattress put in the room and we all stayed together. So, be prepared for unexpected changes, but also know that the staff is usually flexible and sincerely want to help.
Jump off the balcony at high tide and swim with sea turtles right next to the hostel. Walk five minutes down to open stretches of beach. Enjoy the smiles of the children in the village. Derawan is a peaceful, beautiful place to visit.
For reservations, contact Pak Toni, who speaks English. His HP # is 081347807078.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.