Saturday, 14 May 2016

Can I help a naive foreigner avoid getting scammed in Indonesia?

 

I was staying in some accommodation in Indonesia. It's funded by partnership of a local and a foreigner supplying funds. What I learnt about Indonesia is that outsiders can't buy land. Or rather, you can only do so if you have residency now. There are various ways around this limitation but in my research none are watertight that I've seen. So, foreign investment plays a path of full trust. Often what happens is that the local or a builder scams the outsider and the project is left derelict.

In the situation here I can see a guy here has partnered with a local. He has put his life's savings into a building. He says he trusts his friend and they are all living together at the moment fine. I wish them the best.

But I want to help this guy. I ran some tests and now I am certain that the local will shift this guy when the time is right.

I want to help the balance of power in any way I can. I'm not sure this is possible as the house is now built in the land. However, I believe that these people are easy to control. Sure, they may have the house now but if the investor is still bringing in customers then they will keep him around. But if ever they feel they don't need him anymore, he's gone. They'll kick him out.

I've already suggested to him to control and build a brand and website. What more can I do? Speaking to other people they say 'contracts count for nothing in Indonesia'.

Do you have ways of structuring something to maintain control on a project? Do you have ways to have people's interests vested against shifting anyone this way?

Locals have seen this project and I can see their reactions. They go quiet. Others now feel a scam is the only way to make a buck. Honest business is pushed aside. It's a negative influence for the area.

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