Lombok is emerging as one of Southeast Asia’s most promising investment destinations. But when it comes to buying property there as a foreigner, the path isn’t quite like anywhere else. Here’s how to make it work—safely, legally and.
Why Lombok?
- Lower prices than Bali, with rising demand in areas like Kuta & Selong Belanak
- Surging tourism and infrastructure development: new roads, airport expansions and luxury projects such as samara Lombok boosting value and interest
- High rental potential from digital nomads and holidaymakers but even more so for long term rentals as families look to relocate with children and so far this is an untapped market with a supply and demand issue as most are blindly building for air bnb.
What You Can’t Do
Foreigners cannot directly own freehold land (Hak Milik) in Indonesia—that right is reserved for Indonesian citizens only but we will guide you the safest, most effective routes to ownership in Indonesia via legal routes to secure your investment.
Options Available for Foreign Buyers:
- Hak Pakai (Right to Use)
- Tenure usually 25 years, renewable up to around 80 years
- Suitable for residential property
- Titles are issued through the Investment Coordinating Board (BKPM) and can be placed in your name
- Leasehold (Hak Sewa)
- A private lease of 25–30 years, extendable up to 80
- Quick and straightforward—no PT PMA required
- Common in tourist hubs like Kuta and Selong Belanak
- HGB via PT PMA (Hak Guna Bangunan through Foreign‑Owned Company)
- Form a PT PMA (foreign-owned Indonesian entity)
- Register land under HGB (Right to Build)—allows construction and operations over 30 years, extendable to ~80
- Grants full control and must be registered through BKPM, BPN and with a Notaris
Tax
Please note Latitude Lifestyle is not a tax or legal advisor.
| On Freehold land or villa sales | |
| Seller pays | 2.5% of sale price |
| Buyer pays | 5% of sale price |
| On Leasehold land or villa sales | |
| Seller with a local tax no pays | 10% of sale price |
| Seller without a PMA or local tax no | 20% of sale price |
The notary will handle these payments on each behalf and provide a receipt of payment.
Notary fees are usually the buyer’s responsibility hence also allowing the independence of choice in notary for impartiality. On occasion the notary fees can be split case by case.
Pitfalls to Avoid
- Nominee arrangements: having an Indonesian friend hold title for you is common—but risky and not legally enforceable
- Skipping due diligence: Nowhere else in the world would you buy a property without legal checks; nor should you here. Its like some let their guards down in excitement but paradise can fast become hell without the adequate legal checks re unclear zoning, unpaid taxes or unauthorized land divisions can lead to legal problems down the line.
- Working with unlicensed developers or agents: always use authorized Notaris and professional advisors.
So if you are looking to invest in lifestyle, rental income and long-term growth, Lombok offers a secure and compelling path with the right structure in the right location according to nearby amenities. Whether through Hak Pakai, Leasehold or establishing a PT PMA with HGB, foreign buyers can legally invest and enjoy the beauty of the island whilst watching their initial investment mature positively thanks to increasing great restaurants and a wealth of activities for all ages on the fringes of fabulous beaches!
