In Indonesia we don't need to create a separate company for every island.
One PT PMA (foreign investment company) can own or develop property in different locations across Indonesia.

For example, the same company can have projects in Bali, Lombok, Sumbawa or even Sumatra. What matters is that each project location is registered in the investment system (OSS) and the land title is usually held under HGB (Right to Build) or Hak Pakai.

The company itself only needs to be legally established in Indonesia - it doesn't have to be based on the island where the land is located.

1.There's no need to establish a company on every island.

The short answer:

One Indonesian company (PT PMA) can purchase or own land in various regions of Indonesia.

There's no need to create a "Sumbawa Company," a "Bali Company," or a "Sumatra Company."

The important thing is:

-> The company is registered in Indonesia.

-> Its activities are in accordance with the business license (KBLI).

-> The project location is recorded in the investment permit/OSS.

Legally, a PT PMA is a national entity, not an island-specific entity.

Example:

One PT PMA can acquire:

· a villa in Bali

· a resort in Sumbawa

· a surf camp in the Mentawais

· a hotel in Lombok

All under one company.

2.But there's one important detail: "Project Location."

Even though there's only one company, the government assesses investments based on:

KBLI + Location

Example in OSS:

Each project is usually registered as a project location.

This is important because:

· building permits (PBG),

· zoning,

· EIA,

· tourism permits

Are all handled at the regional level.

3.Land Rights That a Foreign-Owned Company (PT PMA) Can Own

Foreign companies cannot own freehold (ownership rights).

However, a PT PMA can own:

1. Building Use Rights (HGB)

Most commonly for villas/resorts.

· 30 years

· Extendable for 20 years

· Can be extended again.

2. Use Rights

· For specific uses.

3. Cultivation Rights (HGU)

· For agriculture/plantations.

Villa developers typically use:

->> HGB (Building use rights)

4.Minimum investment rule (which people often don't know)

This is the part that often surprises investors.

Indonesia requires:

->> Minimum investment plan of approximately IDR 10 billion per project location

(excluding land and buildings).

This means, in theory:

5.Common Mistakes Investors Make

Many foreign investors misunderstand and think:

· You must create a company per island

· You must have a Bali or Lombok company

But that's not true.

The truth is:

-> One PT PMA

-> Many projects’ locations

This is much more efficient.

Let’s build your project with clarity and confidence.