Hmm, how would it work if foreigners could own property but just for 90 years? Surely that's not ownership, but rental?
all property owned by companies in indonesia is in fact not in perpetuity (ie, freehold). it is long term title such as HGB (hak guna bangunan) and HGU (hak guna usaha). initial title period is usually 25-30 years, and can then be extended twice by paying 1.5% of the taxable value (NJOP) of the land to the lands office (BPN). the NJOP is periodically determined by the kabupaten govt. property owned under HGB or HGU title is mortgagable, unlike hak pakai, which is a non-renewable 25 year lease.
With whom would the actual title lie - the person who sold it to them?
the title reverts to the state. ownership, however, does not necessarily revert. meaning that although the title has expired, the owner may continue to use the land. at this point, however, it becomes impossible to sell or to mortgage.
Could the foreigner sell the land to an Indonesian who would then own the land without the time limit?
that is possible. HGB can be converted back to hak milik ("freehold") *with the agreement of the BPN* (note critical sub-clause).
but once again, don't go getting too excited about this talk about foreign ownership of land. *if* it ever passes, it *wont* be what people are wanting/expecting, and it *will* takes years for "supporting regulations" to be drafted and implemented.