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Indonesia has launched a formal crackdown against a Canadian-based website accused of illegally listing its islands for sale, calling the move a violation of sovereignty and a misleading stunt with no legal basis.
The controversy centres on Private Islands Inc., a digital platform based in Ontario that bills itself as the world’s “foremost global marketplace for private island sales and rentals.” The site was found listing several islands located in Indonesian waters, including Panjang Island in West Nusa Tenggara, Seliu Island in Bangka Belitung, Sumba Island, and a beach resort in East Nusa Tenggara - despite Indonesian law strictly prohibiting complete private ownership of entire islands.
“No island in Indonesia can be privately owned, let alone sold on a foreign website. That is impossible, and whoever’s behind this is acting irresponsibly,” said minister of agrarian affairs and spatial planning, Nusron Wahid, speaking to reporters on Sunday, as quoted by Jakarta Globe.
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Wahid confirmed that Panjang Island, one of the featured listings, is designated entirely as a conservation area. “We’ve reviewed the land registration map for Panjang Island and found that there are no ownership rights granted to any individual or entity. It is classified entirely as a conservation forest area,” he said. “So, how can anyone claim to sell it? There’s no legal basis whatsoever. We will investigate this further.”
Private Islands Inc., also known as Private Islands Online (PIO), operates out of Simcoe Street, Collingwood, and claims an audience reach of 4 million visitors annually. However, the website features a disclaimer noting that listings come from property owners or brokers, and that the platform “makes no warranty or representation” regarding the accuracy of the information provided.
As observed by MARKETING-INTERACTIVE on 24 June, the website’s Indonesia page states that “Indonesian law does not permit private ownership of an island. Shares of a resort business, however, can be sold to anyone.” Three listings remain posted on the site: Sumba Island Properties, Surf Beach Property, and Seliu Island Plots - the latter priced at US$167,336.
The ministry of marine affairs and fisheries has sent a formal request to the ministry of communication and digital affairs to block the website entirely, following reports of four uninhabited islands - Ritan, Tokongsendok, Nakok, and Mala - in the Anambas Islands District being listed for sale under the title “Island Pair in Anambas, Indonesia.”
Koswara, director general of marine spatial management, confirmed the move, saying that if the government’s warning is ignored, it will move forward with a site ban. He pointed to Law No. 1 of 2014 on coastal area and small island management, which caps private use of land on small islands to 70%, and mandates that green open space be reserved as part of that allocation.
Indonesia is also coordinating across ministries and with law enforcement to track any potential unlawful transactions related to small island sales.
While digital property marketplaces have flourished globally, this case raises serious questions about platform accountability and the limits of international jurisdiction in real estate marketing. For Indonesia, the issue goes beyond regulation - it’s about territorial integrity and public trust.
Citizens have also raised concerns over the lack of proper monitoring of Indonesia’s remote islands. A caller to national radio RRI noted that this isn’t the first time Indonesian islands have appeared on foreign websites. He claimed that in Berau, East Kalimantan, foreigners had previously taken control of a local island, barring even local fishermen and officials from approaching it.
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