Question 1

Can foreigners own land on Sumba Island?

Accepted Answer

Foreigners cannot hold freehold title (Hak Milik) anywhere in Indonesia, including Sumba. The two compliant structures are: (1) long-term leasehold (Hak Sewa) of 25–30 years with renewal options, and (2) a foreign-owned PT PMA company holding building rights (Hak Guna Bangunan / HGB) for up to 80 years (initial 30 + 20 extension + 30 renewal). Live Sumba does not use nominee structures, which are illegal under Indonesian law.

Question 2

What is a PT PMA and why do I need one?

Accepted Answer

A PT PMA (Penanaman Modal Asing) is a foreign-owned Indonesian limited liability company registered with BKPM (Indonesian Investment Coordinating Board). It allows foreigners to legally hold HGB or Hak Pakai land titles in Indonesia and is the strongest legal framework for foreign property investment. Live Sumba handles end-to-end PT PMA formation including deed of establishment, NPWP tax registration, and OSS/NIB licensing.

Question 3

What returns can I expect from Sumba real estate?

Accepted Answer

Sumba is in a pre-growth phase comparable to Bali in the 1980s. Beachfront land prices are typically 5–20× lower than Bali (IDR 150,000–500,000/m² vs IDR 5,000,000–50,000,000+/m² on Bali's south coast). The Indonesian government has designated Sumba a national priority tourism destination with active infrastructure investment. Past Bali appreciation does not guarantee Sumba returns, but the structural fundamentals — pricing discount, infrastructure roadmap, and tourism designation — are unusually compelling.

Question 4

How long does the land acquisition process take?

Accepted Answer

From initial site selection to completed legal transfer, the process typically takes 3–6 months. This includes due diligence, zoning verification via RDTR/BHUMI databases, BPN certification, notary review, and transfer registration. Adat (customary) land that requires conversion to a registered SHM certificate adds a further 9–14 months including a mandatory 60-day public announcement.

Question 5

What is the minimum investment for Sumba land?

Accepted Answer

Entry-level parcels in emerging areas start from approximately USD 30,000–50,000. Premium beachfront or hilltop sites with ocean views range from USD 100,000–500,000+ depending on size, access, and zoning. Turnkey design-and-build packages (Seed to Harvest) start in the low six figures USD with fixed pricing and timelines.

Question 6

How does Live Sumba verify listings?

Accepted Answer

Every listing on the Live Sumba platform passes a multi-step verification process covering: (1) legal title via the BPN registry, (2) zoning compliance via RDTR and BHUMI government databases, (3) boundary accuracy via direct cadastral GeoJSON, and (4) on-the-ground ownership confirmation. We list only land in 'yellow' (residential/tourism) and 'pink' (commercial/tourism) zones.

Question 7

What is a PT PMA bank account and how do I open one?

Accepted Answer

Once your PT PMA is incorporated and has its NPWP (tax number) and NIB (business identification), Live Sumba's legal team coordinates opening a corporate bank account at a major Indonesian bank (typically BCA, Mandiri, or BNI). Initial deposit requirements vary by bank but are typically IDR 10–25 million.

Question 8

Can I get an investor visa (KITAS) through my PT PMA?

Accepted Answer

Yes. A PT PMA with sufficient paid-up capital (typically IDR 10 billion / ~USD 650,000 declared) can sponsor an Investor KITAS for its foreign shareholders, granting 1- or 2-year residency in Indonesia. Live Sumba can advise on the application process and timeline.

Investment as a Way of Life

What We Handle

PT PMA Establishment

Legal Documentation

Land Title Structuring

Investment Licensing

Nominee-Free Structure

Ongoing Compliance

The Process

Conversation

Entity Formation

Land Stewardship

Operational Setup

Ready to Build?

Begin the Conversation