Private Island Ongoing Ownership Costs

Private Island Ongoing Ownership Costs

Private Island Ongoing Ownership Costs

Owning a private island or investment land in Anambas generally involves minimal ongoing expenses. Most of these costs relate to maintaining your PT PMA company (Perseroan Terbatas Penanaman Modal Asing), rather than the land itself. As a foreign investor, you acquire and hold the property through this legal entity, which must keep registrations, licenses, and permits up to date.

Land Title Renewal in Anambas

The only property-specific fee in Anambas is the renewal and extension of the land title. Every 25–30 years, you must pay 1.5% of the original land purchase price for this renewal. This straightforward process preserves your long-term ownership and maintains valid legal status for the land.

Optional Usage and Additional Costs

Staff and Labor Costs

If you choose to place staff on-site or use the land and surrounding waters for activities like aquaculture or agriculture, plan for wage expenses of around US$250.00 per person per month. Additionally, you provide an extra month’s pay during Ramadan. These costs let you maintain operations and protect your investment on location.

Agricultural Land Rights

When using the land for agricultural projects, secure the right category of land use:

  • Hak Guna Usaha (HGU) or Hak Guna Bangunan (HGB): You obtain these rights through the National Land Agency (BPN) or other relevant offices. They allow you to cultivate or build on the land for specific business activities.

Cultivation Permit (Izin Usaha Pertanian/IUP)

If your plans include planting, farming, or animal husbandry, you may need an IUP. You can acquire this permit from the local Agriculture Agency (Dinas Pertanian) or a similar authority. The permit ensures compliance with local agricultural regulations and good farming practices.

Environmental Permit (Izin Lingkungan)

Some agricultural or aquaculture activities can affect the environment. In those cases, you must get an Environmental Permit (Izin Lingkungan) from the local Environmental Impact Management Agency (BPLHD). This step protects local ecosystems and shows your commitment to sustainability.

Other Permits and Certifications

Depending on the specifics of your plan, you might need further licenses related to seed production, organic farming, pesticide use, or export/import regulations. Identify these requirements early to remain compliant and avoid delays.

Final Thoughts

Although managing a private island in Anambas involves minimal land-related costs, you must stay aware of potential expenses tied to business operations. By securing the correct permits, meeting environmental obligations, and renewing land titles on schedule, you can protect your investment and maintain a profitable venture.

For more detailed information on how to unleash investment yield in Anambas check out our Facebook, X and Instagram accounts or check out Kepri Estates YouTube channel. For more information on how to capitalise on this new premium eco resort destination, check out Kepri Estates Private Island FAQ and Services page.