How to buy land in sumbawa?

If you’re thinking of purchasing a particular piece of Sumbawa Land or Sumbawa Property, congratulations. You couldn’t have picked a more beautiful location in which to live. Although non-natives may find some things about buying Indonesia real estate to be different from what they are used to, that should not stop them from acquiring the Bali real estate of their dreams. This FAQ will show you how easy it can be.


Question: how can i own the property if its not possible to hold the title?

For the non-native individual who discovers an attractive piece of Sumbawa land or sumbawa property, 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, or PMA.


What is Nominee?

The nominee can be a native Indonesian individual or a limited-liability Perseroan Terbatas company. Either of these entities can hold title to the property under a legal agreement and subsequently sign over full rights to the purchaser through a power of attorney.


What are the purchaser Right when partnering with a nominee?

Once a nominee has transferred title of the sumbawa property to the purchaser through power of attorney, the owner will gain beneficial rights to the land that allow him to build on it, lease it, sell it or transfer it to a relative. This holds true for all Indonesia real estate.


What is Leasehold?

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. 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.


Is Partnership necessary to setting up PMA?

No. Under Indonesian law, a foreigner hoping to purchase Sumbawa land or Sumbawa estate can set up a PMA on his own.


What are the steps to take in setting up PMA?

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.
– Declare the sumbawa land as a company asset.


How Long it takes to setting up PMA?

Setting up a PMA will take between three and four months.