An auction for development rights to an eastern Indonesian archipelago of more than 100 islands has been delayed until January, Sotheby's said, days after backlash broke out over the sale.

The Widi Reserve is part of the Coral Triangle, the most biodiverse marine area on Earth, which passes through six countries, including the Philippines, Papua New Guinea and the Solomon Islands.

The rights were due to go under the hammer in New York last Thursday but the sale has now been pushed back to late January, according to the famous auction house.

Zackary Wright, Sotheby's Asia-Pacific vice president, told AFP the sale was delayed because of "overwhelming interest" and to give buyers "more time... to work through due diligence".

But the move came after stinging criticism from environmental groups that said selling the development rights would harm the untouched paradise island chain.

"The islands are a sea migration route with mangrove forests and corals -- a perfect zone for ecosystem regeneration," Greenpeace Indonesia campaigner Afdillah Chudiel told AFP.

"That area should be protected for the conservation, not for tourism purposes."

Parid Ridwanuddin, a campaigner for conservation group Walhi, said the auction's claim that the islands were "uninhabited" showed ignorance towards the culture of Indonesia's maritime people.

"The so-called uninhabited islands have ecological and cultural functions for the local people. They use the islands for planting their food," he said.

"They really need these islands."

PT Leadership Islands Indonesia (LII), a Bali-based development firm that holds 70-year management rights to the islands and is the seller in the auction, said that it planned to build on less than 0.005 percent of the reserve.

LII is advertising the archipelago as a chance to build luxurious resorts and homes across 17 islands, with the potential for a 1,000-metre private airstrip.

But Maritime Affairs and Fisheries Ministry spokesperson Wahyu Muryadi told AFP the company had not acquired a business development permit and the islands could not be owned by foreigners or traded.

The company said it did not have the permit yet "because it is not currently using the waters" for business activity.

No estimated sale price for the rights has been given by the auction house or the company.

Indonesia has one of the most extensive coral reef systems in the world and hosts more than 17,000 islands that are home to a dizzying array of exotic wildlife.

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