Sumba, Indonesia’s rugged eastern island, is quickly transforming from an off-grid destination to one of the most promising real estate investment frontiers in Southeast Asia. While many have heard of its untamed landscapes and cultural richness, what’s often less visible — yet incredibly compelling — is what investors are doing with the land here.
In this article, we’ll walk you through real examples of foreign and local investors turning raw land into high-end eco-retreats, boutique resorts, and value-generating properties. If you’ve ever wondered whether it’s possible — or profitable — to buy land in Indonesia and build a dream project in a remote island paradise, Sumba offers powerful answers.
This piece continues our deep dive into Indonesia land investment. If you’re just starting, check out Discovering Sumba: The Next Big Land Investment Opportunity in Indonesia or How to Navigate Land Ownership in Sumba: A Legal & Cultural Overview for foundational knowledge.
Why Sumba?
Before we dive into the stories, let’s recap what makes Sumba uniquely appealing for property investment:
- Untouched natural beauty: From cliffside beaches to savannah valleys.
- Emerging eco-tourism market: Growth of 60%+ in sustainable hospitality projects in the past five years.
- Affordable land: Coastal land is still available at a fraction of the cost compared to Bali or Lombok.
- Flexible ownership models: With leasehold and PT PMA structures, buying land in Indonesia as a foreigner is fully feasible.
- Cultural integrity: Communities welcome responsible investment that respects traditions and contributes locally.
These characteristics have shaped a new wave of investor projects that offer high return potential — and genuine social impact.
Case Study 1: “Barefoot Luxury” by an Australian Couple in West Sumba
Location: Near Pantai Watu Bella
Size: 6,500 m² leasehold plot
Project: A 5-villa barefoot luxury retreat + permaculture garden
Timeline: Land purchased in 2019, opened in 2022
This couple first visited Sumba in 2018 during a surfing trip and were instantly struck by the potential. After months of legal consultation and local due diligence, they secured a leasehold land in Indonesia via a local notary in coordination with a PT PMA.
Their concept was simple but bold: off-grid villas with natural building materials, integrated into the landscape with minimal disruption. They worked with local craftsmen and invested in solar and rainwater systems.
Today, their retreat is ranked among the top 10 eco-lodges in East Indonesia by several regional travel blogs. With 75% average occupancy in high season, they report a 12–14% ROI annually — a figure unheard of in more saturated markets.
Want to know what’s legal and what’s not for foreigners? Read: How to Navigate Land Ownership in Sumba: A Legal & Cultural Overview
Case Study 2: From Family-Owned Land to Boutique Surf Resort
Location: Tarimbang Bay, East Sumba
Size: 9,000 m² ancestral plot
Project: Surf lodge with 8 rooms and a farm-to-table restaurant
Ownership: Local family + foreign investor (joint PT PMA)
A local Sumbanese family had long dreamed of creating a surf lodge to bring employment to their village. In 2020, they partnered with a European investor with experience in hospitality. The investor brought in the capital and management skills, while the family provided the land and deep cultural ties.
The lodge opened in mid-2023 and is already gaining attention in surf publications. Land value in the surrounding area has risen by 18% since 2021, in part due to the added visibility and improved access roads.
This example demonstrates how Indonesia land investment doesn’t have to mean ownership — it can mean partnership, community development, and shared success.
Explore the location further in: Top Coastal Locations in Sumba for Beachfront Land Investment
Case Study 3: Wellness Escape on a Hilltop
Location: Kodi, Southwest Sumba
Size: 4 hectares (freehold via Indonesian partner)
Project: Wellness retreat, yoga platform, and herbal garden
Goal: High-end private stays + holistic programs
An American-Indonesian couple built this haven over three years, blending tropical land for sale with a wellness vision. Designed to host retreats for global guests, the development emphasizes silence, sustainability, and locally-sourced design.
The land was acquired under freehold land Indonesia by the Indonesian spouse. This is a common legal pathway when foreign nationals marry locals or partner with trusted Indonesian citizens.
With just 5 rooms, the project still nets an average USD 50,000 net profit annually, and bookings are often full months in advance. Future expansion plans include eco-villas available for fractional ownership — opening another income stream.
What These Examples Tell Us About Investing in Sumba
These case studies reflect several important truths:
- Start small, scale smart
Many investors begin with just one or two villas before expanding. Building in phases allows for learning and minimizes upfront risk. - Local partnership is key
Sumba operates largely through community and traditional structures. Collaboration with locals, whether through hiring, joint ventures, or land access, is crucial for success and legitimacy. - Eco-tourism is the best development path
Investors who try to mimic Bali-style mass tourism often fail. The most successful projects build around nature, community, and experience. - Regulatory navigation is manageable
With the right legal advisors, setting up a PT PMA, navigating the step-by-step land buying process, and ensuring land use compliance is completely achievable. - The land value is rising
In high-interest areas like Kodi and Tarimbang, land prices are increasing by 7–12% annually, yet still remain far below other Indonesian hotspots.
How to Plan Your Sumba Investment Project
If you’re inspired to explore property investment in Indonesia through the lens of Sumba, here’s a basic outline:
Step 1: Define Your Vision
- Eco-retreat? Beachfront villa? Small farm stay?
- This will influence your ideal location and land size.
Step 2: Legal Consultation
- Work with a reputable Indonesian legal firm to assess foreign ownership rules Indonesia
- Choose between leasehold, freehold via a local partner, or setting up a PT PMA
Step 3: Visit the Island
- Spend time in West Sumba, Kodi, and Tarimbang
- Meet locals, builders, and potential collaborators
Step 4: Land Due Diligence
- Check zoning (tourism, agriculture, conservation)
- Confirm ownership, traditional rights, and family inheritance status
Step 5: Build in Stages
- Use local materials where possible
- Prioritize water, waste, and energy infrastructure
Final Thoughts: Is Land Investment Safe in Indonesia?
Yes — when done right. Investors who take time to learn the legal landscape, respect local traditions, and prioritize sustainability find Sumba to be one of the best places to invest in land Indonesia.
From raw land to luxury retreat, the journey is full of challenges — but also full of reward. With growing demand for unique travel experiences and safe land investments abroad, Sumba is not just a location — it’s a movement.
For a broader overview of why this market is rising, visit: Why Eco-Tourism is Driving the Rise of Land Prices in Sumba
Or start with an introduction to the island in: Meet Sumba: Indonesia’s Wild and Beautiful Frontier. Ready to explore land for sale in Sumba?
Get in touch with our advisors at islandproperty.com to access verified plots, legal assistance, and location-matched recommendations.