Using PMA company to buy property

Is incorporating a PMA the best way to own Indonesian property?

Cons

There is a minimum investment capital requirement of Rp 10 billion (around USD 700,000).  This capital would usually be in cash that must be deposited in a bank with proof to the government although it can be in the form of assets other than land. 

Can this invested capital be used to acquire property in Indonesia?  Answer Yes.

Pro

A PMA can legally hold legal title in Indonesian property provided that the title is converted from freehold to right to build. Legal title means title that is registered with the Land Office.  A title that cannot be registered with the Land Office is strictly speaking not a real legal title because it offers little or no protection.

What is non-legal title or right?

This means that the title is not backed by a land office certificate. Example would be rental right. It is usually in the shape of an agreement and does not bind a purchaser from the existing lessor.

Can I use PMA to acquire apartment?

Yes, but the title would be only for Hak Guna Bangunan or HGB (Right of Building or Construction Use)

What are the conditions for registering a company as a PT PMA?

The PT PMA must have at least two shareholders, a director and a commissioner

The foreign investor must have paid up minimum capital of IDR 10 billion. This is about USD 700,000.