Editor’s Note:
This article was originally written in 2008 by contributor Mark W. Medley and reflects observations and commentary from that period. At the time, there was significant media attention surrounding the sale of remote Indonesian islands online and confusion regarding foreign ownership rights in Indonesia. The article has been preserved largely in its original form as part of the historical editorial archive of expat.or.id. Some legal and regulatory information regarding foreign ownership and land use in Indonesia has evolved since the article was first published.
Unknown Islands
One thing that makes Indonesia unusual is that it is the largest island nation in the world. There are over 17,000 islands that are officially part of Indonesia – many are uninhabited, remote and do not even have a name.
Then there are the disputed islands that Indonesia, the Philippines, and Malaysia all claim. One island, aptly named “Mischief Creek,” lays between all three countries. Malaysia uses this atoll as a kind of military outpost.
The island has no value; it is too small to have an airstrip and is a long distance to reach by sea. So, the dispute is forgotten, although all three countries still officially claim the island.
So what use are all these uninhabited islands, aside from being an anonymous dot on the map of Indonesia? Some enterprising individuals started selling them on a website and apparently gained a lot of interest.
I am sure most of us would love to own an island, but what would you do with it? Not every island is like the island on “Lost”. There could be nothing there but coconut and banana trees. It would probably take a week or more to get there by boat, if you could find it.
You could become a voluntary Robinson Crusoe. Or, if you are a genuine millionaire, you could escape from the world and create your own imaginary world for real. Religious sects could escape to one of these paradises creating their own brand of heaven upon earth.
Sounds idyllic, for the price of a new Mercedes, except there is one important catch.
Updated Legal Clarification (2026): Foreign nationals still cannot directly own freehold land (Hak Milik) in Indonesia. However, since this article was written, Indonesian property regulations have evolved. Foreigners may now legally obtain certain forms of property usage and residency rights under structures such as Hak Pakai (Right to Use) and through ownership of qualifying apartments or houses under specific conditions. Regulations continue to change periodically, and anyone considering property or island-related investments in Indonesia should seek professional legal advice and conduct careful due diligence.
People would not suspect this, given that most countries do sell land to people of any nationality. It is only an elaborate con.
The Indonesian government was so annoyed when they found out, that they are now naming many of these unknown islands. They are still looking for the website owners, but one thing is sure. If no one has ever been on many of these islands, I wonder if they will find a real latter day Robinson Crusoe or even a lost tribe that time has forgotten.
by Mark W Medley
Copyright © 2008, Mark W Medley, City of Dreams: An extraordinary journey, inside the heart of Indonesia’s capital – Jakarta















