Can a foreigner buy land in Lombok? Yes, but not in the same way as at home. Indonesian law reserves full freehold ownership for Indonesian citizens, so foreign buyers use one of three legal structures. This guide explains each route, the step-by-step process and the mistakes to avoid.
The key rule: Hak Milik is for Indonesians only
The strongest title in Indonesia is Hak Milik, shown on an SHM certificate. Under the Basic Agrarian Law, only Indonesian citizens can hold it. Foreigners therefore cannot put an SHM title in their own name.
Option 1: Leasehold (Hak Sewa)
You lease land from an Indonesian owner for a fixed term, commonly 20 to 30 years, often with an option to extend. It is the most popular route for individual buyers.
- Pros: simple, lower upfront cost, no company needed.
- Cons: the value declines as the term runs down, and extensions depend on the contract.
- Tip: sign in front of a notary, fix the extension price and conditions in writing, and include the right to build and sub-lease.
Option 2: A PT PMA company holding an HGB title
A PT PMA is an Indonesian company that can be foreign-owned. It can hold land under Hak Guna Bangunan (HGB), a right to build, granted for an initial 30 years with extension and renewal possible, up to around 80 years in total.
- Best for: rental villas, resorts and commercial projects.
- Cons: company setup, minimum investment requirements, licences and annual reporting.
Option 3: Hak Pakai (right to use)
Foreigners who live in Indonesia with a valid KITAS or KITAP residence permit can hold a residential property under Hak Pakai, initially for 30 years and extendable. It is designed for a personal home, not for a rental business, and minimum property value thresholds apply by region.
Never use a nominee
Putting land in an Indonesian friend's name while you "secretly" own it is a nominee arrangement. Indonesian law treats these arrangements as void, and you could lose the land with no legal recourse. Avoid anyone who suggests it.
Step by step: buying land in Lombok
- Define your project: personal home, rental villa or land banking. This decides the right structure.
- Shortlist plots by region, access, view and budget. Browse land on Talora.
- Title check at BPN: the notary verifies the certificate is genuine, matches the land and has no mortgage, dispute or block.
- Zoning check (PKKPR): confirm the land allows the building you plan. Agricultural land may need conversion.
- Survey and boundaries: have the plot measured and the boundaries confirmed with neighbours.
- Access and utilities: legal road access, electricity (PLN) and a water source.
- Sign with a PPAT notary and pay through traceable bank transfers.
- Register the deed or lease and keep certified copies.
Taxes and costs to budget
- BPHTB (acquisition duty), usually paid by the buyer on sales.
- PPh (final income tax), usually paid by the seller on transfers.
- Notary fees, due diligence, survey and, for a PT PMA, company setup costs.
Rates and calculation bases vary, so ask your notary for a full cost estimate before signing.
Frequently asked questions
Can I buy beachfront land in Lombok as a foreigner?
Yes, via leasehold or a PT PMA. Check the coastal setback rules, which restrict building close to the shoreline.
Is leasehold or PT PMA better?
Leasehold suits a personal villa with a simple setup. A PT PMA suits a business that rents villas or runs a hospitality project. Read our leasehold vs freehold comparison.
Where should I buy?
It depends on your goals. See the best areas to buy land in Lombok.
