Hi there! My name is Alanna, and I am from North Carolina on the East Coast of the United States. My partner William is developing Mawi Valley and has asked me to share my experience as a first-time investor in Indonesia. What I thought would be a challenging endeavour was actually quite simple. I have recently purchased land and a villa, and I hope I can help you navigate how to own your slice of paradise and live the island dream.
Kuta, Lombok– I first arrived here at the end of 2022 after deciding to learn how to surf. A friend of mine recommended the island as a great place to improve from beginner to intermediate surfer. Little did I know at the time, two months in the water does not make you an intermediate surfer (I’ve discovered the learning curve is much longer), but two months was all it took to decide that Kuta would one day be home.
After spending the first part of 2023 in Switzerland trying to snowboard (it didn’t go well- snow and layers of clothing are not my thing), I returned to Kuta in June to warm smiles and the words “welcome home” spoken by ex-pat and local friends that I had made on my first visit. I did immediately feel at home thanks to the small, friendly community and the fun waves I had been missing. In fact, within two weeks of returning, I began exploring villa development projects around Kuta with the intention of investing in my first piece of property.
I took my time investigating the options, taking pieces of advice from friends who had lived in Kuta for a while. However, I wanted to make the choice largely on my own. After asking a lot of questions, I came to understand that I would need to open a “PT PMA” company in order to own land. At first this sounded overwhelming, but the process was actually straightforward and pretty fast. Within a month I had a company set up and was ready to purchase land.
While I definitely had doubts about buying property in Indonesia as a first-time investor, I could see the potential for high return on investment. I’ve now lived in Kuta for one year, and I am experiencing its growth daily- from new hotels and restaurants popping up to the government’s $3 billion investment in the Mandalika project. Lombok is also more affordable than Bali (where you can only lease, not own, land) and has an incredibly diverse landscape and nature, like Mount Rinjani, and a plethora of waves.
I now have a small real estate portfolio of properties in Kuta, and I look forward to living in Mawi Valley with Will and our dog, Paul, in the near future! Below is a guide on how Will and the Mawi Valley team can assist you with your investment. See you soon, neighbour.
Property Ownership in Indonesia
It is essential to comprehend property ownership. Three main categories exist:
Hak Malik (Freehold Ownership): Full ownership, applicable only to Indonesian nationals, but not to foreign investors.
Hak Guna Bangunan (Right of Use): Safeguard foreign ownership, streamlining the procedure without requiring an Indonesian nominee. This is the ownership title on offer for Mawi Valley to foreign investors. This means you will own the property through your PT PMA company.
Had Sewa (Leasehold): Suitable for both residential and commercial use, this type offers flexibility with lease periods up to 80 years. We are not offering this at Mawi Valley.
How to Buy At Mawi Valley:
Step 1: First consultation
Make an appointment for a call to discuss your preferred plot, the villa options, and costs. We will inform you of our development timelines and you can choose whether to develop in Phase 1 or Phase 2.
Step 2: Agreement for sale and purchase
We will share the draft of the land sale purchase agreement and construction agreement that outlines the terms and circumstances of payment and the purchase security between yourself and Mawi Valley.
Step 3: Company setup
Work with a Hak Guna Bangunan title under a PT PMA firm for international investors or Hak Milik for Indonesian investors. Our team will help ensure that your PT PMA business is set up smoothly. A PMA can be established for about $1500 USD, which can take up to three weeks to process.
Step 4: Create a payment simulation
Our team will put together a spreadsheet that will document all the associated costs to buying a Villa which include the tax payments that you can expect.
Step 5: Final contracting and signing
Once you have your PT PMA set we then move on to the signing of the agreements.
Step 6: Payments and development stages
We then start to develop your Villa while you make payments in stages throughout the development journey.
Step 7: Finalisation and transfer of keys
Pick up your villa key! Complete your final payment for your villa. Realize the full potential of your home by renting it to resort visitors, which will guarantee a profitable return on your investment.
Make an appointment for a call with us to learn more. Our committed staff will walk you through every stage to make sure your investment is set up for success.
Check out our website to view our amazing project.
