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Legal Pathways for Foreigners to Invest in Sumba, Indonesia

​While direct freehold land ownership ("Hak Milik") is restricted to Indonesian citizens, there are several legal avenues for foreigners to secure property rights in Sumba:

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1. Establish a Foreign-Owned Company (PT PMA)​

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) allows foreign investors to acquire land under:

  • Hak Guna Bangunan (HGB): Right to Build title, typically granted for a maximum period of 30 years with the option to extend.

  • Hak Pakai: Right of Use title, typically granted for a maximum period of 80 years (initial 30 years with the option to extend).

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2. Leasehold Agreements

Foreigners can enter into leasehold agreements ("Hak Sewa") for a defined period, typically ranging from 80 to 100 years.This option allows for the development and use of the land without the complexities of ownership.

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3. Nominee Arrangements

Some investors consider using a local nominee to hold the land title. However, this method carries risks and is not recommended without thorough legal support

 

Recommend option is establishing PT PMA as this structure provides a secure and legal framework for property ownership, ideal for developing luxury villas, boutique hotels, or eco-tourism retreats.

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How to Get Started?

Navigating the Indonesian property market requires careful planning and local expertise:

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  • Due Diligence: Conduct thorough research on land titles, zoning regulations, and ownership rights.

  • Legal Assistance: Engage with legal professionals experienced in Indonesian property law to ensure compliance and secure transactions .

  • Local Partnerships: Collaborate with local real estate agents and consultants who understand the nuances of the Sumba market.

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We recommend ILA Global Consulting, experts in PT PMA establishment and foreign property acquisition, ensuring a smooth, legal, and efficient transaction.

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Explore Investment Opportunities with Sumba Sands

At Sumba Sands, we offer exclusive beachfront, cliff-view, and hillside properties in Sumba, Indonesia—a hidden paradise with unmatched investment potential.

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Key Investment Benefits:

  • Unmatched ROI Potential: Sumba’s tourism boom is accelerating, making land ownership a high-growth investment.

  • Thriving Hospitality Sector: Ideal for resorts, hotels, and tourism projects in an emerging luxury destination.

  • Exclusive Opportunity: Limited plots available in Sumba’s most sought-after tourism hotspots.

  • Affordable Entry Point: Secure premium land at a fraction of Bali or Lombok prices, with exponential appreciation potential.

  • Secure & Transparent Deals: A trusted investment partner, ensuring smooth and risk-free transactions.

  • Sustainable Growth: Invest responsibly while preserving Sumba’s rich culture and natural beauty.

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​​​​​​​​​Take the Next Step Today!

​🌴 Explore our exclusive property listings at: https://www.sumbasands.com/properties-1

📞 Contact ILA Global Consulting to begin your investment journey in Sumba.

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📢 Disclaimer: This information serves as a general guide. For personalized advice, consult with property and legal experts familiar with Indonesian regulations.

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​🎥 Watch this video to learn more:​

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land for sale in indonesia

João (Jo) Romana

+62-822-4750-4274

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