For the non-native individual who discovers an attractive piece of Sumbawa land or sumbawa properties, there are three options: collaborate with a nominee, enter into a leasehold transaction or purchase the property in the name of a Penanaman Modal Asing (PMA) or Limited Liability Foreign Investment Company.

The nominee can be a native Indonesian individual (registered on regional ID) having agreement with citizen from different countries to purchase a land in sumbawa, by using nominee the purchaser can own the plot of land, hence the risk can be challenged between individuals, please search further for nominee risk in Indonesia.

A leasehold is a means by which the investor can lease a piece of Indonesia land or land in Sumbawa, No partnership will be necessary to do this and the lease never actually owns the property, and when the lease is up, control will pass back to the lessor.

A PMA is the Indonesian term for a company that is fully owned by a non-native investor. Under the terms of the Indonesian Foreign Investment Programme, such a company can purchase and hold title to a piece of Indonesia property for 20 to 30 years (HGB). At the end of that time, if the company wishes to retain control of the real estate, it must apply to the government for an extension of the license.

No. Under Indonesian law, a foreigner hoping to purchase land in sumbawa can set up a PMA on his own with minimum 2 individuals, commissioner-director .

The buyer who hopes to purchase Indonesia property by setting up a PMA will need to:
– Submit a business plan.
– Demonstrate that the business will create jobs, bring in foreign skills and benefit the environment.
– Deposit an appropriate amount of cash in an Indonesian bank as part of the company capital.
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Setting up a PMA will take between three and four months.