If you are not an Indonesian national you might be under the impression that are unable to legally purchase property in Indonesia. But you can. In fact, many foreigners have successfully purchased lands in Sumba.
Whatever arrangement you choose, I am there to help you all the way.
There are 3 ways to do it.
The safest way is to invest in land in Sumba is to set-up a foreign-owned company (PT PMA).
This type of company can legally obtain a "Right to Build" (HGB) certificate.
You own the company and the company owns the land.
A Building Rights Title (HGB) gives the right to construct and own buildings on a piece of land that someone else owns. Such title is granted for a maximum period of 30 years and can be extended for another 20 years. Building Rights Titles are granted to Indonesian citizens or legal entities (including PMA companies) and can also be used as collateral or transferred to a third party.
Nominee agreements are commonly used in Sumba to allow foreigners to own land as Indonesian citizens cannot legally own freehold land in Indonesia.
How to choose a nominee?
The easiest way is to use my name (Imelda Toka) which has a good reputation and can be trusted.
You can also find a reputable legal firm or a property agency that specializes in nominee agreements.
Before signing a nominee agreement, it is advisable to consult with a legal professional who can provide guidance and help draft the agreement.
A non-Indonesian citizen cannot own land in Indonesia. However, a foreigner can acquire a leasehold title (Hak Sewa) to a land and building for a defined period of time.
This title can be held in your own personal name and is 100% legal and protected by the Indonesian law.
This flexible option is where a property is leased through an existing (PT PMA) company and gives the lessee exclusive rights, to develop, subdivide and/or even on-sell the remainder of the lease. Leasehold through a (PT PMA) company meets all the legal requirements for foreign ownership.