Buying Property in Lombok as a Foreigner: What You Need to Know

Buying property in Lombok as a foreigner is possible — and many people do it successfully every year. But it’s important to understand how ownership works, what’s allowed, and where mistakes usually happen.

This guide explains the legal options available to foreigners, how the process works in practice, and what to pay attention to before committing to a purchase.

No shortcuts. No loopholes. Just the reality on the ground.

Can Foreigners Buy Property in Lombok?

Yes — but not freehold land in your own name.

In Indonesia, Hak Milik (freehold) is reserved for Indonesian citizens. Foreign buyers must use alternative legal structures to invest in property.

These structures are well established and commonly used — as long as they’re done properly.

Legal Ways for Foreigners to Invest in Lombok Property

1. Leasehold (Hak Sewa)

This is the most common option for foreign buyers.

A leasehold gives you the right to use the land for a long, fixed period — typically 25 to 30 years, with extensions agreed in advance.

Why people choose it

• Simple structure
• No company setup required
• Suitable for villas and rentals
• Widely accepted in the Lombok market

What to check carefully

• Total lease length (initial term + extensions)
• Clear extension rights written into the contract
• Who controls renewal terms

Leasehold properties can be rented, sold, and transferred — provided the contract is well drafted.

2. PT PMA (Foreign-Owned Company) with HGB

Foreigners can also invest through a PT PMA (foreign-owned Indonesian company).

The company can hold Hak Guna Bangunan (HGB) — the right to build and use property on land owned by an Indonesian entity or state.

Best suited for

• Commercial projects
• Multiple properties
• Hospitality or rental businesses
• Long-term development strategies

Things to keep in mind

• Higher setup and running costs
• Annual reporting obligations
• Not ideal for small, lifestyle-only purchases

This structure is solid, but it should match your investment scale and goals.

3. Hak Pakai (Right to Use)

In some cases, foreigners can hold Hak Pakai, usually tied to residential use and visa status.

This option is more limited and not always available depending on the location and property type. It’s typically used by long-term residents rather than investors.

What About Nominee Structures?

Nominee structures — where property is bought in an Indonesian citizen’s name under a private agreement — still come up in conversations.

They are not legally secure and offer no real protection if something goes wrong.

If someone presents a nominee setup as “standard practice,” that’s usually a sign to pause.

Land or Villa: Does It Change the Rules?

The ownership rules are the same — but the risk profile is different.

• Land purchases require deeper checks on zoning, access, and future development.
• Villas add another layer: permits, build quality, compliance, and operating history.

For many foreign buyers, finished villas with clear documentation are easier to understand, operate, and resell.

Key Documents to Check Before Paying Anything

Before placing a deposit, always verify:

• Land title type
• Zoning designation
• Legal road access
• Building permit (PBG)
• Lease terms and extensions
• Who legally owns the land

These details matter more than the view — and they’re not always obvious online.

Taxes and Extra Costs to Budget For

Beyond the purchase price, buyers should plan for:

• BPHTB (buyer transfer tax): 5%
• VAT (11%) on new or off-plan villas only
• Notary and registration fees
• Legal due diligence
• Ownership setup (if applicable)

Clear budgeting upfront avoids surprises later.

Why Local Guidance Makes a Difference

Buying property in Lombok isn’t difficult — but it is fragmented.

You’re dealing with landowners, notaries, lawyers, developers, and local authorities, often all at once. Without coordination, things can slow down or get confusing quickly.

At Nour Estates, a large part of our role is helping buyers:

• Understand trade-offs
• Avoid common mistakes
• Choose properties that make sense both legally and practically

Final Thoughts

Foreigners can buy property in Lombok — legally and securely — when the right structure is used and the details are handled properly.

The key isn’t rushing in.
It’s understanding what you’re buying, how it’s structured, and why it fits your goals.

If you approach the process calmly and with the right support, Lombok can be a rewarding place to own property — whether for living, renting, or long-term investment.

Nour Estates
Your local guide to Lombok property
www.nourestates.com | hello@nourestates.com

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