How we vet projects
Most projects do not pass.
The process
Six stages. A project can stop at any of them.
- 01
Screening
Location, offer and developer.
Who: AETHA
- 02
Documents
Title, permits, company records.
Who: AETHA + counsel
- 03
Site visit
On the plot and at finished work.
Who: AETHA + engineer
- 04
Legal opinion
Written opinion on title, lease, permits.
Who: Independent counsel
- 05
Financial model
Developer case and conservative case, net of all costs.
Who: AETHA
- 06
Decision
Partners vote. Must be unanimous.
Who: AETHA partners
The checklist
Every check closed, or the project stops.
A document described as “in process” counts as missing.
01 · Land and title4
| Check | Evidence we require | Verified by |
|---|---|---|
| Certificate type and holder | Certified SHM copy, lessor’s identity card | Independent counsel |
| Encumbrances | BPN land office search, within 30 days | Independent counsel |
| Boundaries and size | Measured survey vs certificate map | Licensed surveyor |
| Lease registration | Notarial deed, registration, extension clause | Notary (PPAT), counsel |
02 · Zoning and permits4
| Check | Evidence we require | Verified by |
|---|---|---|
| Spatial zoning | PKKPR approval confirming tourist use | Independent counsel |
| Building approval | Issued PBG with number, date and drawings | Counsel, site engineer |
| Business licence | NIB and OSS licence with KBLI code | Independent counsel |
| Environmental | SPPL, UKL-UPL or AMDAL as applicable, issued | Independent counsel |
03 · Developer and contractor4
| Check | Evidence we require | Verified by |
|---|---|---|
| Company records | Deeds, shareholders, OSS profile | Independent counsel |
| Track record | Completed projects, visited in person | AETHA |
| Construction contract | Fixed price, schedule, delay penalties | Counsel, site engineer |
| Financial capacity | Proof of funding for the build | AETHA, accountant |
04 · Construction4
| Check | Evidence we require | Verified by |
|---|---|---|
| Independent site engineer | Engagement letter, reporting schedule | AETHA |
| Milestone payments | Schedule tied to verifiable stages | Site engineer |
| Material specification | Specification schedule in the contract | Site engineer |
| Warranty | Defects period in writing | Independent counsel |
05 · The numbers5
| Check | Evidence we require | Verified by |
|---|---|---|
| Occupancy and rate | Third-party data for comparable villas | AETHA, AirDNA |
| Every cost line | Line-by-line model, each with a source | AETHA |
| Conservative scenario | Model on independent data, not the developer’s | AETHA partners |
| Currency | Result shown in the currency it is earned in | AETHA |
| Exit value | Remaining lease term at sale | AETHA, valuer |
Red flags
Eight things that end the review.
Guaranteed returns
Nobody can guarantee rental income. A fixed return is usually paid out of the price.
Freehold offered to a foreigner
Foreign individuals cannot hold freehold land in Indonesia.
A nominee holding land for you
Void under Indonesian law. It gives you no enforceable right.
Part of the price paid outside the notary
A side payment is not protected.
Payments ahead of construction
Paying for work not yet built moves the risk to you.
Zoning “being processed”
An application is not an approval.
Returns on gross revenue
Ask for the net figure and its assumptions.
A deadline to reserve within days
Due diligence takes weeks. Pressure is a reason to wait.