Investment Road Maps Work! Here’s why.

Investment Road Maps in Indonesia
Photo by from Pexels

We think Investment Road Maps are the way to go.

At Seven Stones Indonesia we’ve written plenty about rules and regulations in Indonesia and how we believed things would change, especially regarding the rules around investments. Well, now it seems to be happening!

Old regulations are being changed with new ones. They are more efficient, more integrated and more transparent.  And they make things better in any industry, including the one we’re in: real estate and tourism.

We’ve tried to put ourselves in the shoes of investors and buyers, not just expats but also Indonesians as similar challenges also exist for them.

Addressing Challenges

And we deal with a lot of investors from just one person looking for a beautiful place to live, to large international groups developing islands and infrastructure. But no matter who it is, there are similar challenges.

We’re trying to address these challenges as early as we can in the process and we believe the key to that is to look at what we’re calling an “Investment Road Map.”

Map Out Your Vision

There are important reasons for this.

For expats, ownership structures, and which ones to consider will have a huge impact on any investment decision while for locals, zoning and permits are important areas to look at.

We believe the government will also look at these aspects as well as we move forward.

Don’t get us wrong; the government wants both foreign and domestic investment in Indonesia, but they want it to be long term, sustainable and structured.

Here’s an example of what we mean.

Planning to Retire?

If you’re a planning to retire and invest in a nice place to stay in Bali what do you look for? Obviously, you look for an area you like, but are you aware that for a proper Hak Pakai (residential title for expats) title you can “only” be located in a residential area?

You’ll also need a retirement KITAS, and you need to know that you can’t get any permits for short-term rentals.  You could probably get away with a long-term rental, for say 6 months an upwards, if for some reason you don’t use the property.

Planning a Property Investment?

If you want to invest in real estate, what can you or can’t you do?  What kind of company set up is the best? Bear in mind there a few options with this one. Do you know how this impacts your permits for operating any real estate you’ve bought?

Can you sell shares or properties later on from your portfolio?  How many share holders can you have in a PT PMA?  Additionally, do you know how taxes work on this structure between assets, possible operation of assets and eventual dividends taken out.  Is it easy to get money out of Indonesia?

What if I just do a lease?  Well, a lease covers such a wide area as to what can and cannot be done that we’ll leave that for its own blog.

This was the quick fix that came out when the truth around nominee/trustee structures started emerging.  And it’s now confronting many investors in similar ways.

What about issues with main freehold owners or lack of clarity on how to structure commercially?  Can you even do that sort of thing? Can I sell a pre-agreed extension? And the list goes on.

The Problems of No Plans

We even see large companies not taking the time to evaluate the process and create an Investment Road Map until they’re way into it and it often comes back to haunt them. Are you just selling land?  Or land and a build?  How do people buy from you?  Are you selling interest in a resort through a unit or shares?  What about management?  Or reselling?  How about security for both parties?

What happens without an Investment Road Map is any changes you make along the way will cost you, in time and money.

It will cost to adjust to taxation issues, cost when difficulties arise for investors, cost when there are problems to obtain proper permits and so on.

Need Some Help?

There’s a lot to consider and I’m not writing this to put you off. Quite the opposite, we’d like more investors to be here but we believe your experience will be better if you create a clear and well thought out Road Map for your investment.

Remember it’s your money we’re talking about and the last thing we want to do is take this off you because of hurdles and problems that could easily have been avoided.

Make sure you think your investment through and look for advice into the process.  Perhaps you haven’t really thought things through and just need some support and a chat.

At Seven Stones Indonesia, we’re happy to share things with you. We’re happy to spend time with you so you can evaluate and enhance your options and we’re happy to be with you all throughout the process to create a safe and sound Road Map.

Send me an email if you’d like to have a chat:


This blog was first published on Gapura Bali

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.