For future people interested: It is not a problem for a foreigner to buy a motorbike in Indonesia.
I am riding Sulawesi right now, have been stopped by police in several routinary controls and all is good.
There is the government registration, and the motorbike papers. This and your international driving license is all you need to have the police happy. That, and taking pictures with them. Everybody loves selfies in Sulawesi.
No bureaucracy is needed. The seller gives you the bike and the papers, you pay, and the motorbike is yours.
I don't know about the insurance. Did not try that.
PS: the bike is for sale. If anybody is interested, check the ad in the HUBB and PM me.
http://www.horizonsunlimited.com/hub...266#post531782
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