**A foreigner cannot buy freehold (Hak Milik) resort land in Raja Ampat, full stop. The realistic, legal path is to lease the land long-term or hold Hak Pakai (Right to Use) through an Indonesian foreign-investment company (PT PMA). You secure control, not freehold title, and most coastal plots sit on customary (adat) land that needs clan consent first.**
That single rule trips up most newcomers. People arrive expecting a Caribbean-style deal where you wire money and get a deed in your name. Indonesia does not work that way, and West Papua adds its own layer because nearly every beach, point and small island here is tied to a marga (clan) under hak ulayat customary rights. Below is the actual sequence we walk foreign buyers through, with the legal structures, the rough numbers, and the places deals quietly fall apart.
Why can’t a foreigner own land outright?
Indonesia’s Basic Agrarian Law of 1960 (UUPA No. 5/1960) reserves Hak Milik — full freehold ownership — for Indonesian citizens only. A foreign individual, even one married to an Indonesian or holding a KITAS residence permit, cannot hold freehold. This is not a Raja Ampat quirk; it applies across the entire country and has not changed under the Omnibus Job Creation Law.
What a foreigner can legally control comes in three forms:
| Right | Holder | Typical term | Fit for a resort? |
|---|---|---|---|
| Hak Milik (freehold) | Indonesian citizens only | Permanent | No — closed to foreigners |
| Hak Pakai (Right to Use) | Foreign individual w/ residence, or PT PMA | Up to 30 yrs, renewable | Yes, for smaller plots / villas |
| HGB (Right to Build) | Indonesian entities, PT PMA | Up to 30 yrs + extensions | Yes, common resort structure |
| Long-term lease (sewa) | Anyone, incl. foreigners | Negotiated, often 25–30 yrs | Yes — simplest entry, weakest security |
For an actual resort with rooms, a restaurant and a dive operation, the cleanest vehicle is a PT PMA holding either HGB or Hak Pakai over the land, layered on top of a lease or transfer agreement with the landholder. (Figures and term limits below are current as of mid-2026 and are subject to change — confirm with a licensed Indonesian notary/PPAT before you commit.)
Step 1 — Verify who actually holds the land
In Raja Ampat this is the hardest step, not a formality. Coastal land is frequently unregistered and governed by adat. A man may show you a tax letter (SPPT-PBB) or a village statement (surat keterangan tanah) and call himself the owner, while the clan, his cousins, or a neighbouring marga also claim a stake.
Before any money moves, insist on:
- A land certificate (sertipikat) from the National Land Agency (BPN/ATR) — if one exists at all.
- Written identification of the customary rights-holders and the marga boundary.
- A community/clan consent process, ideally documented with the village head (kepala kampung) present.
- A formal due-diligence search at the local BPN office to check for overlapping claims, mortgages or sale history.
If a seller resists a BPN check or rushes you, treat it as a red flag. Quiet boundary disputes are the single most common reason a Raja Ampat resort plan dies after deposits are paid. We cover this customary-consent process and how an island lease is structured in detail on our island-lease support page.
Step 2 — Set up the PT PMA
A PT PMA (Penanaman Modal Asing) is an Indonesian limited company with foreign shareholding. It is the legal “person” that will hold the land right, the business licence and the bank account. Rough parameters as of 2026:
- Minimum investment plan: IDR 10 billion (roughly USD 600,000–650,000 depending on the rate), excluding land and buildings, per the BKPM/Investment Ministry threshold.
- Paid-up capital: commonly IDR 2.5 billion stated, though enforcement varies.
- Business classification: the right KBLI codes for accommodation (e.g. 55130 villa, 55111 starred hotel) and any dive/tour activity.
- Licensing: done through the OSS (Online Single Submission) system, which issues the NIB business identity number.
The PT PMA route, its share structure, nominee risks, and licensing sequence are walked through on our PT PMA legal page. The key honesty point: do not use an Indonesian “nominee” to hold freehold on your behalf. Nominee arrangements are legally void under Indonesian law and have cost foreigners entire projects when the nominee, or their heirs, simply kept the land.
Step 3 — Secure the land right under the company
Once the PT PMA exists and the landholder is verified, the company acquires its right. Two common structures:
- Lease-then-build: the PT PMA signs a long lease (often 25–30 years with a renewal option) directly with the verified landholder, then applies for HGB or Hak Pakai over the leased plot. Lower upfront cost, but your security depends on the lease holding up.
- HGB transfer: if the land is already certificated, the PT PMA can take HGB title via a PPAT (land deed official). Stronger security, only possible where proper certification exists — rarer on remote islands.
A realistic cost frame for a small-to-mid resort plot:
| Item | Indicative range (2026) | Notes |
|---|---|---|
| Land lease (25–30 yr, per plot) | Highly variable | Depends on marga, access, beachfront |
| PT PMA setup | IDR 30–60 million | Notary + OSS + licensing fees |
| Notary / PPAT for land deed | ~1% of land value | Plus BPN registration |
| Land/building transfer tax (BPHTB) | ~5% of taxable value | On HGB acquisition |
| Annual land/building tax (PBB) | Modest | Recurring |
These ranges are indicative only and move with rupiah rates, plot specifics and local fees.
Step 4 — Layer the conservation and zoning checks
Raja Ampat is a regency-wide Marine Protected Area, and large parts sit inside the Raja Ampat Marine Park (Kawasan Konservasi Perairan) zoning system, with conservation-zone, sustainable-fishing and utilisation sub-zones. Some areas permit tourism infrastructure; some emphatically do not. Building setbacks from the high-water line, jetty permits, waste and wastewater rules, and the regency’s tourism levy all apply.
Run these checks before you fall in love with a plot, not after:
- Confirm the plot’s marine-spatial-plan zoning category.
- Check the coastal setback (sempadan pantai) and whether any structure is even allowed.
- Confirm building, environmental (UKL-UPL/AMDAL) and jetty permits are obtainable.
The honest summary
Buying resort land in Raja Ampat as a foreigner means controlling land through a properly structured PT PMA holding Hak Pakai, HGB or a long lease — never personal freehold, never a nominee. The legal mechanics are well-trodden; the real risk lives in customary land claims and conservation zoning, which is why verification comes first and the cheque comes last.
We operate as Bali Premium Trip, an independent broker and concierge — not the asset owner, not a government or SEZ body, and not licensed legal, tax or financial advisers. Nothing here is a guaranteed return or a substitute for advice from a licensed Indonesian notary, lawyer and tax consultant. Treat every figure and threshold above as a 2026 starting point to verify, then bring in the professionals who carry the licence and the liability.