Common Risks When Buying Land in Sumba

Most Sumba land has never been sold to an outside buyer before. That means the paperwork was never stress-tested, and problems only surface when someone finally looks properly.

• •Adat (customary) claims running alongside the formal title. A certificate in one family member's name does not mean the wider clan considers the land sold. The check: a written, witnessed release from every relevant party, verified at village level, before any payment.
• •Girik or unregistered land presented as if it were certified. Girik is a tax-payment record, not a title. Converting it to Hak Milik at the land office (BPN) is possible but adds 3 – 6 months and can fail. The check: ask for the certificate number and verify it directly at BPN.
• •Several heirs on the seller side, not all of whom have signed. Any missing signature can unwind the deed later. The check: a full family tree and identity documents for every heir.
• •Boundaries that do not match the certificate. Differences of several hundred square metres are common. The check: a fresh survey with the neighbours physically present and signing the boundary minutes.
• •Outstanding land tax (PBB) arrears, which the buyer inherits in practice. The check: PBB receipts for the last five years.

The second category is what the land actually is, as opposed to how it was described. In Sumba this is where most of the money is lost, because a plot with no legal access cannot be developed at any price.

• •No legal road access. A track crossing a neighbour's land is not a right of way. The check: access shown on the certificate map, or a registered easement — verbal permission from a neighbour is worthless once the neighbour sells.
• •Overstated buildability. Steep coastal land often has a buildable envelope far smaller than the plot area, and coastal setbacks reduce it further. The check: a topographic assessment before purchase, not after.
• •Water. Most coastal plots need a borehole and storage; yields vary sharply within a single bay. The check: ask what neighbouring boreholes produce, and at what depth.
• •Power. Where the PLN connection is more than a few hundred metres away, the connection cost falls on you, and solar with grid backup is often the more realistic route.
• •Environmental and zoning constraints — protected coastline, mangrove, or land designated agricultural rather than for tourism. The check: zoning confirmation with the local planning office.

The third category is how the purchase is structured. Foreign nationals cannot hold Hak Milik freehold in Indonesia, so every foreign purchase involves a structure — and a weak structure is a risk that only reveals itself years later, at exit.

• •Nominee arrangements, where land is held in an Indonesian individual's name on your behalf. These are unenforceable under Indonesian law and you may have no recourse at all. Avoid entirely.
• •Informal or under-documented lease terms: no extension mechanism, no clarity on what happens to buildings at expiry, no registration. The check: a notarised, registered lease with a defined extension right.
• •Skipping the PPAT notary and signing a private sale agreement instead. Without a deed of transfer registered at BPN, the sale is not effective against third parties.
• •Paying a deposit before the title search is complete. Once money has moved, your negotiating position is gone. The check: escrow or a conditional deposit released only on clean due diligence.
• •Not budgeting the transaction costs — 5% BPHTB transfer tax and roughly 1% notary fees — and discovering them at signing.