Book Likupang Invest | Likupang Invest

Book Likupang Invest

Likupang Invest connects private investors and hospitality operators with curated real estate and business opportunities in the Likupang Special Economic Zone (KEK Likupang), North Sulawesi. The focus is on income-producing coastal and near-coastal assets, with indicative (non-binding) rental yields often above national averages, supported by ongoing tourism infrastructure and clear legal structuring for foreign and domestic buyers. We act as an independent broker and concierge, not as the owner or developer of the assets presented.

Why Likupang for Property and Business Investment?

Likupang, in North Minahasa (Minahasa Utara), is one of Indonesia’s officially designated super-priority tourism destinations. Areas such as Likupang Timur, Likupang Barat, and the coastal strip facing Gangga, Lihaga, and Talise islands are being positioned for resort, villa, and eco-tourism development. For investors using likupang invest services, this means access to:

• Beachfront and near-beach plots with tourism zoning within or near KEK Likupang.
• Existing homestay, villa, and dive-lodge operations seeking equity or buyout partners.
• Support services such as legal structuring (PT PMA), due diligence, and notary (notaris/PPAT) coordination through third-party professionals.

Typical investors include boutique hotel operators, family offices seeking hard-asset exposure, and individuals planning a combination of lifestyle and yield (e.g. owning a villa used part-time for personal stays and part-time for short-term rentals).

Understanding the Likupang Special Economic Zone (KEK Likupang)

The Likupang Special Economic Zone was created by the Indonesian government to attract both domestic and foreign capital into tourism, hospitality, and related services. Covering roughly 2,000 hectares, KEK Likupang is designed for large and medium-scale projects including hotels, resorts, villas, MICE facilities, and supporting businesses such as F&B, dive centers, and tour operations.

The government has designated Likupang as one of five super-priority destinations, with an official target of around 3.2 million visitors per year by 2025. While actual arrivals will depend on airlines and global conditions, this policy focus has already triggered:

• Fast-tracked spatial planning (RDTR) in parts of North Minahasa to clarify land use and building rules.
• Priority budget allocations for roads, utilities, and public facilities.
• Incentives for investment through KEK regulations and BKPM/OSS licensing systems.

The KEK framework offers selected tax and non-tax facilities for qualifying projects, such as potential reductions or exemptions of import duties on capital goods and streamlined licensing processes. These benefits are policy-based and may change, so any investor should confirm current rules with a licensed consultant before committing capital.

Connectivity and Infrastructure: Foundation for Growth

Connectivity is a critical part of any tourism-led investment. Likupang’s accessibility has improved significantly over the past few years and is expected to keep improving through 2026:

• Manado–Bitung Toll Road: This toll road connects Manado city with Bitung port and shortens land travel times between major hubs in North Sulawesi. From Manado, the drive to Likupang via Airmadidi and Dimembe is now more predictable and generally faster than it was when investors relied on secondary roads.
• Sam Ratulangi International Airport (Manado): The airport has received upgrades to the terminal and apron to handle more domestic and regional international flights. By 2026, indicative expectations among local stakeholders are for expanded frequencies to hubs like Jakarta, Surabaya, Bali, and possibly more direct regional links, subject to airline decisions.
• Local roads and utilities: Work has been ongoing to improve roads from Airmadidi to Likupang Timur, electricity distribution, and basic water access. Investors considering off-grid eco-resorts near areas such as Pulisan Beach or Paal Beach increasingly look at hybrid systems (solar plus genset) as transitional solutions while the grid continues to improve.

For many buyers who work with likupang invest, the condition and planned upgrades of specific access roads to a chosen plot or project is a key part of due diligence, directly affecting construction costs, logistics, and future guest experience.

Property Investment Structures: Leasehold vs. Freehold

Indonesian land law distinguishes between several main types of land rights. In Likupang and wider North Sulawesi, the two categories most discussed by property investors are commonly referred to as “freehold” and “leasehold,” but they map to specific legal rights under national law.

Freehold (Hak Milik) and Related Rights

Hak Milik is the strongest type of land right, broadly equivalent to freehold. It can generally only be held by Indonesian individuals (WNI) and certain Indonesian entities. Foreign individuals cannot directly hold Hak Milik in their own name.

• Indonesian buyers: An Indonesian citizen or qualifying entity can acquire Hak Milik directly, subject to area and zoning rules under the local RDTR and national agrarian law.
• Foreign investors: Many foreign investors use a foreign-owned company (PT PMA) to hold other rights such as Hak Guna Bangunan (HGB) or Hak Pakai over land, rather than Hak Milik itself.

HGB (Right to Build) and Hak Pakai (Right to Use) can often be structured to give long-term control suitable for hotels, villas, or mixed-use developments, subject to renewal under applicable regulations.

Leasehold (Hak Sewa and Contractual Leases)

Leasehold in practice refers to contractual rights to use land or buildings for a fixed term, often recognized under Hak Sewa (Right to Lease) or long-term private contracts.

• Typical terms in Likupang range from 25–30 years, with renewal options negotiated case-by-case.
• Leases can apply to raw land, built villas, or resort complexes, and may include revenue-share elements for local owners.
• Leases should be formalized before a licensed notaris/PPAT to ensure registration where possible and to reduce future disputes.

For many expatriates, leasehold can be a more straightforward way to access beachfront or near-water locations in villages such as Pulisan, Kinunang, or Likupang Timur without breaching foreign ownership restrictions.

Hak Pakai for Residential and Commercial Use

Hak Pakai is often used by foreigners through a PT PMA or, in certain cases, in individual form for residential use. It gives the right to use and/or occupy land for a specific purpose and period.

• Periods can be structured (subject to law) for an initial term plus extensions that together may approach multi-decade control.
• Hak Pakai is commonly seen on apartments and villas in tourism zones where developers wish to sell units to foreign buyers via a recognized structure.

Choosing between leasehold, Hak Pakai, or PT PMA/HGB structures depends on investment scale, intended use (private vs. commercial), and financing requirements. This choice should always be made with guidance from a licensed notaris/PPAT and legal counsel.

Working with a PT PMA in Likupang

Foreign investors often establish a PT Penanaman Modal Asing (PT PMA) – a foreign investment company – to hold land rights (usually HGB or Hak Pakai), operate hospitality businesses, and sign commercial contracts.

• Scope: A PT PMA in North Sulawesi can be licensed for accommodation, F&B, tour operations, and related services, depending on its approved business classification under the Indonesia Standard Industrial Classification (KBLI).
• Capitalization: Regulations are updated regularly, but foreign-owned entities typically must show a minimum investment plan (for example, indicative policy discussions have referenced total investment commitments in the range of IDR 10 billion and above per PT PMA project; check current rules).
• Control: The PT PMA can sign long-term leases, obtain building permits (PBG/SLF), and hire staff, making it a practical vehicle for larger villa clusters, boutique hotels, or dive resorts in areas like Likupang Barat or around Gangga-facing coastlines.

Set-up is usually handled via the OSS (Online Single Submission) system and often coordinated by a consultant working with a notaris/PPAT. Likupang Invest can introduce you to independent professionals but does not provide legal or tax services itself.

ROI and Rental Yields in Likupang

Investors are drawn to Likupang because returns can be attractive compared with some other Southeast Asian coastal markets, especially for smaller-scale hospitality projects aligned with eco and marine tourism.

Indicative (non-guaranteed) figures discussed among local operators for 2026 include:

• Beachfront villas and small resorts: Gross rental yields in the range of 8–12% per year of total project cost, assuming stable occupancy and effective marketing through OTA platforms and direct channels.
• Non-beach but accessible locations: Villas or homestays within easy driving distance of Pulisan or Paal Beach may see gross yields in the 6–9% per year range, depending on quality, view, and access.
• Value-add projects: Underperforming properties upgraded with better management, digital marketing, and improved amenities may target improvements of 2–4 percentage points in yield over their pre-renovation performance.

These numbers are not guarantees. Actual returns depend on purchase price, seasonality, operating efficiency, interest rates, currency moves, management quality, and wider tourism patterns. Independent feasibility studies and cash-flow modeling are recommended before any acquisition.

Tax and Transaction Costs for Property Deals

Any investor in Likupang should factor Indonesian tax and legal costs into their calculations. Key concepts include:

BPHTB: Land and Building Acquisition Duty

BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is a duty payable on the acquisition of land and building rights. It is typically borne by the buyer and calculated as a percentage of the transaction value or government-assessed value (NJOP), whichever is higher.

By 2026, many regions in Indonesia continue to apply a rate around 5% of the taxable base. North Minahasa follows regional regulations, so the precise rate and thresholds should be confirmed with the notaris/PPAT handling your transaction.

PPh Final on Property Sales

PPh (Pajak Penghasilan) is income tax. For property transactions, a final income tax on the seller is commonly applied at a set percentage of the sale price.

• Indicative seller’s PPh final rates on property sales in Indonesia are often around 2.5% of the transaction value, subject to applicable regulations and type of seller (individual vs. company).
• Although this tax is usually the seller’s responsibility, it can affect negotiations on the net price and should be understood by buyers.

Ongoing Taxes

After acquisition, property owners should budget for:

• PBB: Annual land and building tax, generally a modest percentage of NJOP but varying by location and classification.
• Corporate and VAT obligations: If operating through a PT PMA, hotel and villa operations may trigger corporate income tax and VAT/PPN obligations, depending on turnover and service structure.
• Tourism levies: Local governments may apply tourism or environmental fees, particularly for marine and island-based activities.

Because these rules are technical and regularly updated, investors should work with a licensed tax consultant experienced in hospitality projects.

Due Diligence and Legal Support

Investing in coastal land or operational hospitality assets in Likupang requires structured due diligence to manage risk. Typical steps include:

• Title verification: Confirming the type of right (Hak Milik, HGB, Hak Pakai, etc.), boundaries, and whether any encumbrances or disputes exist.
• Zoning and RDTR review: Checking that intended use (resort, villas, homestay, dive center) is permitted in the relevant spatial plan and that building permits can be obtained.
• Environmental aspects: For beachfront or near-mangrove locations, confirming setback rules, coastal protection requirements, and any environmental assessments requested by authorities.
• Community and adat considerations: Engaging early with local communities and customary leaders where relevant, especially in villages with strong adat structures.

A licensed notaris/PPAT in North Sulawesi is central to these steps, preparing and registering sale-purchase deeds, leases, and corporate-related documentation. Likupang Invest can introduce independent notaris/PPAT offices and lawyers, but any selection and engagement is entirely the investor’s decision.

Typical Project Sizes and 2026 Cost Ranges (Indicative)

Every project is unique, but indicative 2026 figures for budget planning often look like:

These are broad, non-binding ranges and do not include design fees, licensing, pre-opening costs, or contingency. Investors should commission detailed quantity surveys and business plans for any specific project.

How Likupang Invest Supports You

Likupang Invest operates as an independent broker and concierge service dedicated to Likupang and North Sulawesi. The role is to simplify your entry into the local market while keeping clear boundaries: we do not own, develop, or operate the assets we present.

• Deal sourcing: Presenting curated land plots, existing hospitality assets, and partnership proposals from local owners and operators.
• Preliminary screening: Basic checks on documentation provided by owners before you spend on full legal and technical due diligence.
• Professional introductions: Connecting you with independent notaris/PPAT, lawyers, architects, tax consultants, and project managers familiar with Likupang.
• On-the-ground coordination: Arranging inspections, local meetings, and logistics when you visit North Sulawesi.

Any investment decision, legal structure, or tax position remains your responsibility and should be confirmed with licensed professionals.

Frequently Asked Questions

Can foreigners buy property in Likupang?

Foreign individuals cannot directly own Hak Milik (freehold) land, but they can invest through structures such as PT PMA with HGB or Hak Pakai rights, or via carefully drafted long-term leases. A licensed notaris/PPAT and lawyer should explain the practical options for your situation before you sign any agreement.

What is a realistic timeline from decision to opening a small resort?

For a modest 8–12 room resort in Likupang, many investors budget 18–30 months from deal signing to soft opening. This timeline includes due diligence, company and permit set-up, design, construction, interior fit-out, and initial marketing. Delays can arise from weather, supply logistics, or extended permit processing, so contingency planning is recommended.

Are the tax incentives in KEK Likupang guaranteed?

Incentives in KEK Likupang are based on government regulations that can evolve over time and may depend on project size, sector, and compliance with specific criteria. They are not unconditional entitlements. Before relying on any incentive in your financial model, discuss current policy and implementing rules with a tax consultant and, where relevant, the KEK management authority.

Important Disclaimer

All information on this page is general and for informational purposes only. It is not legal, tax, financial, or investment advice, and should not be used as the sole basis for any decision. Regulations, prices, yields, and policies can change, and individual circumstances vary.

Before committing to any project in Likupang or elsewhere in Indonesia, you should consult, at minimum, a licensed notaris/PPAT in North Sulawesi, a qualified Indonesian lawyer, and a registered tax consultant. Likupang Invest is an independent broker and concierge service and is not responsible for outcomes of your investment decisions.

Next Steps

If Likupang aligns with your investment plans and you want curated opportunities, introductions to licensed professionals, or assistance organizing a site visit, you can reach out to our concierge.