How to Legally Own or Lease Land in Sumba as a Foreigner

✋ First, let’s address the elephant in the room:

Can foreigners buy land in Indonesia?

Short answer: Not in your own name.
Better answer: Yes! With the right structure.

If you’ve been dreaming of building an eco-retreat, cliffside surf shack, or your own version of paradise on Sumba. You need to understand exactly how to do it legally, safely, and with full peace of mind.

Here’s your guide to every legal path available to foreign buyers in Sumba, what works (and what doesn’t), and how we help you secure your land without stress, loopholes, or risk.

Option 1: Leasehold Land (Hak Sewa) The Most Popular Route

The simplest and most common option for foreigners is leasing land under a long-term agreement. It’s 100% legal, widely used, and well understood.

Here’s how it works:

• You lease land from an Indonesian landowner (often a local or company).

• The contract is written, notarized, and registered.

• Lease terms are often 25–30 years, with options to extend up to 80 years total.

Pros:

• You don’t need an Indonesian company.

• Lease can be structured to protect your investment.

• Works for residential or business use (with the right permits).

Watch out for:

• Poorly written contracts (especially in English-only)

• Unclear clauses about extensions or exit strategy

• Leaseholders who try to resell leases illegally

While leasehold is a common option in Indonesia, at Sumba Sunset Cliff we offer only HGB titles through PMA company setup, ensuring full legal control and long-term security for foreign buyers.

Option 2: Set Up a Foreign-Owned Company (PMA) with HGB Title : The Sumba Sunset Cliff Approach

At Sumba Sunset Cliff, we offer land through Hak Guna Bangunan (HGB) titles, held by PMA (foreign-owned companies) a structure designed to give foreign buyers long-term legal control.

What does that mean?

• You set up a PMA company in your name (or with trusted partners).

• The company holds land under HGB, a renewable right-to-build title.

• You get full control to build, lease, sell, and operate on your land for up to 80 years.

Pros:

• Long-term legal protection and ownership control

• Ideal for business ventures, retreats, or rentals

• Fully compliant with Indonesian law

But be aware:

• Requires more setup cost (approx. $2,500–$3,000)

• Annual reporting and tax obligations

• You’ll need a notary, accountant, and legal consultant

The good news? We take care of all of it.
At Sumba Sunset Cliff, we guide you through the entire PMA and HGB process, connect you with trusted professionals, and assign you a personal tax assistant to handle everything—so you can build your dream without drowning in bureaucracy.

Option 3: Indonesian Nominee – Risky and Not Recommended

Some people will offer to put land in a local’s name and sign a side agreement that “protects” you.

This is called using a nominee.

On paper, the land is theirs. In practice, it’s yours—until it isn’t.

Major risks:

• Legally unenforceable

• The nominee can take the land back at any time

• Illegal under Indonesian law

If someone suggests this, walk away fast.

Which Option Should You Choose?

• Build a home or retreat, no income:
  Consider Leasehold (Hak Sewa) if you're okay with temporary control and not running a business.

• Run a rental, retreat, or land-based business:
  Go with a PMA company and secure a HGB title for full legal control and income-generating potential.

• Anything involving a nominee:
  Don’t do it. It’s risky, unenforceable, and not legally protected—no matter how convincing it sounds.

What You Need Before You Buy

Whether leasing or building through a PMA, you’ll want:

• A clean land certificate (Hak Milik/HGB)

• Zoning confirmation (tourism or residential)

• Road and beach access

• A trustworthy notary and/or consultant

The legal side is just one part. You also want to be part of a community, know your neighbors won’t build concrete boxes next door, and trust that your land will grow in value.

That’s why projects like Sumba Sunset Cliff exist—to make it simple, legal, and aligned with your values.

Pro Tips for a Safe Purchase

• Never sign anything without a bilingual notary present.

• Ask for a copy of the land certificate and check it for encumbrances.

• Meet the seller personally.

• Confirm road and beach access are legally registered.

• Buy within a planned community (like Sumba Sunset Cliff) for added protection.

Final Thoughts: It’s Not Just Legal. It’s Life-Changing

Foreigners can legally lease or own land in Indonesia. You just need to use the right vehicle.

And if your heart’s already on a cliff in Sumba, staring at the waves, barefoot and building something beautiful…

Then let’s make it happen legally, safely, and for the long term.

Ready to explore your legal options?

We’ll walk you through lease options, company setup, and legal pathways with full transparency and zero pressure.

See available plots at Sumba Sunset Cliff

👇 Explore More on the Blog

• How to Build on Sumba Sunset Cliff (Building Guide)

• Could West Sumba’s Sunset Cliff Be Your Next Oceanfront Investment?

• Discover Our Land at Sumba Sunset Cliff