What financing options are available to buy land in Lombok?

Stacks of coin to talk about Financing options to buy land in Lombok

Financing options to buy land in Lombok, especially for foreign investors, can be somewhat limited compared to purchasing property in some other countries. This is largely due to Indonesia’s regulations on foreign ownership of land and property, which generally restrict direct ownership but allow for long-term leases and other forms of use rights. Despite these restrictions, there are several financing avenues you might consider:

Financing options to buy land in Lombok

1. Cash Payment

The most straightforward method of purchasing land in Lombok is through a full cash payment. This is often the preferred method for many transactions, especially in cases where foreign ownership laws make traditional financing options less accessible.

2. Bank Financing

  • Local Banks: Some local Indonesian banks may offer financing options to foreigners, but this typically requires the foreigner to have a residency permit (KITAS) or a long-term visa. The terms, interest rates, and availability of such financing can vary widely. For more information about Kitas, read our post on Ready to Invest in Lombok? All You Need to Know About Visas.
  • International Banks: International banks with branches in Indonesia might offer financing to foreign investors, though this often comes at a higher interest rate and with stricter terms than local financing.

3. Developer Financing

Some developers in Lombok offer direct financing to buyers, which can be an attractive option, especially for pre-construction or off-plan properties. Terms and conditions vary by developer, but this route can sometimes offer more flexibility than traditional bank financing.

4. Partnering with Indonesian Citizens

Foreign investors often partner with Indonesian citizens or legal entities to facilitate the land purchases. In such partnerships, the land is purchased in the name of the Indonesian partner, with legal agreements in place to protect the interests of the foreign investor. This method can sometimes open up more local financing options.

5. Leasehold Agreements

Since outright ownership (Hak Milik) is not available to foreigners, many opt for a long-term lease agreement (Hak Sewa). While not a direct financing option, this method significantly lowers the upfront cost compared to purchasing the freehold title, making it a financially viable option for many investors.

For more information about buying land in Lombok as a foreigner, read our Complete Guide to Buying Land in Lombok.

6. Personal or Overseas Financing

Some foreign investors choose to secure financing from their home country through personal loans, equity release from existing properties, or other means. This option allows investors to take advantage of potentially lower interest rates and more favorable terms in their country of residence.

7. Private Lenders or Investment Groups

Engaging with private lenders or investment groups specializing in overseas property investment can also be an option. These entities might offer more tailored financing solutions for foreign investors looking to purchase land in places like Lombok.

Lombok island land


  • Legal and Tax Implications: It’s crucial to understand the legal and tax implications of any financing arrangement, especially in the context of Indonesia’s regulations on foreign land ownership.
  • Due Diligence: Regardless of the financing route chosen, thorough due diligence on the property, seller, and legal requirements is essential to ensure a secure and viable investment.
  • Professional Advice: It is highly recommended that you consult a legal advisor and a financial consultant familiar with Indonesian real estate and finance laws to navigate the complexities of financing land purchases in Lombok.

Given the unique challenges and opportunities of investing in Lombok, exploring various financing options and seeking professional advice can help you find the best solution for your investment goals.

Embarking on your real estate journey in Lombok is an exciting venture but can also be filled with complexities and challenges. If you’re looking for expert guidance to navigate this process smoothly, we’re here to help.

About Nour Estates

We started Nour Estates with a simple idea: to make finding your dream land in Lombok as easy and enjoyable as a day at the beach. Our team is a mix of local folks and people from around the world who fell in love with Lombok just like you. We’ve been in your shoes, faced the challenges of buying land here, and learned all the ins and outs. Now, we’re here to share that knowledge with you.

We are here to find you the perfect land to invest in. Contact us today, and let’s start this exciting journey together!

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