Buying land on Sumba as a foreigner
Updated 23 October 2026
Foreigners cannot own freehold (Hak Milik, or SHM) land in Indonesia. There are four legal routes: in an Indonesian spouse’s name with a prenuptial agreement, Hak Pakai for one home, a foreign owned company (PT PMA) holding building rights, or a long lease. Choose the route first, then the plot.
The four legal routes
| Route | Title held | Term | Main conditions |
|---|---|---|---|
| Mixed nationality couple | Hak Milik in the Indonesian spouse’s name | Permanent | Needs a separation of property agreement, made before or during the marriage. Without one the land is joint property and must be given up within a year. |
| Hak Pakai for a home | Hak Pakai (right of use) in the foreigner’s own name | 30 years, extended 20, renewed 30 (80 in total) | A valid immigration document. One landed house, land of no more than 2,000 m², minimum price Rp 1 billion in provinces such as NTT. |
| Foreign owned company (PT PMA) | Hak Guna Bangunan (building rights, HGB) in the company’s name | 30 years, extended 20, renewed 30 (80 in total) | For a business such as rental villas or a resort. Investment above Rp 10 billion per business line per location, excluding land and buildings. Paid up capital of at least Rp 2.5 billion. |
| Long lease | Hak Sewa (lease); the owner keeps the title | As agreed in the deed, usually 25 to 30 years with an option to extend | Simplest, with no minimum price. Sign it before a notary, with the extension terms and the right to build written out clearly. |
Indonesian citizens buy with full Hak Milik freehold, with no time limit.
What a purchase costs
| Cost | Rate | Paid by |
|---|---|---|
| BPHTB (buyer’s transfer tax) | 5% of the sale value, less a local tax free allowance | Buyer |
| Final income tax on the sale | 2.5% of the sale value | Seller |
| PPAT (land deed official) fee | Up to 1% of the sale value | Usually the buyer, can be shared |
| Broker commission | 2% to 5%, agreed in writing | Seller |
For Hak Pakai or HGB there is a further land office fee to convert the title down from Hak Milik. Ask the PPAT for a written breakdown before paying any deposit.
The steps, in order
- Choose the ownership routeThe route decides the size, the minimum price and whose name goes on the title. A 2 hectare plot, for example, does not fit Hak Pakai.
- Check the certificate at the land officeThe PPAT runs the formal check: the registered owner, the area, and whether the land is mortgaged, blocked or seized.
- Confirm zoning and setbacksCheck the land use in the regency spatial plan (RTRW) and how much area is left after the coastal, river and road setbacks.
- Get every party’s consentThe seller’s spouse, every heir and, on Sumba, often the wider family or clan must agree and sign.
- Deposit and preliminary agreement (PPJB)A small deposit held by the notary, not paid to the seller, refundable if the checks fail.
- Deed of sale (AJB)Buyer and seller sign before the PPAT, the taxes are paid, then the balance is paid.
- Transfer or conversion of the titleThe PPAT registers the title in the buyer’s name, or converts it to Hak Pakai or HGB.
What is different on Sumba
- The 100 metre coastal setback
- Under Presidential Regulation 51/2016, buildings must sit at least 100 metres back from the high tide line, and the regency can set more. Look at the survey map: does the setback line fall inside the plot or outside it?
- Letter C and girik are no longer proof
- Since 2 February 2026, old written evidence of customary land such as Letter C and girik no longer counts as proof of ownership. Only buy land that already has a certificate.
- Family and clan land
- Much of Sumba’s land is tied to extended families and clans. The person named on the certificate is not always the only one whose agreement matters.
- Legal road access
- A track across someone else’s land is not legal access. Make sure there is a public road or a written right of way.
Do not use a nominee
A nominee arrangement, where land sits in an Indonesian’s name but is really owned by a foreigner, is void under Article 26(2) of the Basic Agrarian Law. The land falls to the state and the money paid cannot be recovered. We do not arrange these.
Next step
Every plot on this site lists the ownership routes it suits. Tell us your plans and we will offer plots that fit your route.
This is a summary, not legal advice. Rules change; every sale is confirmed by the notary and PPAT handling it.