Buying a villa

[jstar]

Honestly, currently I would not invest anywhere over here right now. Prices in Jakarta are still too high and resale looks very bad, empty dwellings everywhere. Bali for own use is okay although I see more and more conflicts with Javanese, and renting out can be a big mess with rather disappointing results. Nobody wants to go to Sumatra now, Sulawesi is rather stagnant and it does not look like it will improve. And Flores is getting more and more expensive to reach, while the prices there (drivers, food, ...) are going through the roof. Of course there are always exceptions when there are real bargains.

 

[centurion]

I was wondering if anyone could provide information on buying a property in Indonesia and owning it as a company.

I understand a PMA needs to be set up. Also, how to make it legal to rent out to tourists.

In short, you can make a PMA, build/buy villa, register business line as a Villa (100% foreign ownership allowed) and rent it.
With PMA you get directly licenses from the Ministry tourism. If there is some local regulation (as I herd in Bali), you will have to fulfil as well. I.e in Lombok there is no local regulation preventing to do it.
You have to register the ownership of the land and building as an HGB, de facto permanent ownership.

 

[centurion]

Honestly, currently I would not invest anywhere over here right now. Prices in Jakarta are still too high and resale looks very bad, empty dwellings everywhere. Bali for own use is okay although I see more and more conflicts with Javanese, and renting out can be a big mess with rather disappointing results. Nobody wants to go to Sumatra now, Sulawesi is rather stagnant and it does not look like it will improve. And Flores is getting more and more expensive to reach, while the prices there (drivers, food, ...) are going through the roof. Of course there are always exceptions when there are real bargains.

Rental prices are finally collapsing, and bargain deals could be easily found for very good units in Jakarta.
Six more months to one year and real estate prices will go down as well, so much that they will become interesting-at least for the ones wanting to live in the capital.

 

[waarmstrong]

Honestly, currently I would not invest anywhere over here right now.......Of course there are always exceptions when there are real bargains.

Real estate investing is not for the faint of heart. Depressions, for whatever reason, are the times to buy. Its like the old joke about Bali: Nobody goes there anymore; too crowded.

 

[Hunabku]

Everyone who I know that has bought a villa, built on land, etc, using the nominee system has regretted it, and almost always lost money.

Article 33 of Law No. 25/2007 on capital investment prohibits the practice of nominee arrangements in foreign investment.

The ban of the nominee practice and shareholder nominee is intended to prevent companies from being legally owned by one person, while de facto being owned and controlled by another.

This regulation is consistent with Article 53 paragraph 4 of Law No. 40/2007 on limited liability companies, which also asserts the prohibition of the nominee structure within the legal system of Indonesia.