Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.
A foreigner can buy property in Lombok in three legal ways: a registered lease (leasehold) from an Indonesian owner, a right to use (Hak Pakai) held in your own name if you hold an Indonesian stay permit and pay at least the provincial minimum of IDR 3 billion for a house, or a right to build (HGB) held by your own foreign-owned company (PT PMA). Freehold (Hak Milik) is for Indonesian citizens only, and putting land in an Indonesian friend’s name is void under Indonesian law. Unlike Bali, Lombok has not closed villa and accommodation business codes to new foreign companies, which is one reason investors are looking east in 2026.
This guide is for foreign buyers looking at south Lombok (Kuta Mandalika, Selong Belanak, Tanjung Aan), the west coast and the Gili islands. It covers ownership routes, the Mandalika zone and the Gilis, risky land titles, a due diligence checklist, the contract clauses that protect your deposit, and taxes. If you are already looking at a plot, ILA’s real estate team and legal due diligence service check the title, zoning and seller before you pay anything.
All USD figures use one rough rate, IDR 17,900 per USD (Databoks Katadata, 5 October 2026).
Can a foreigner buy property in Lombok?
Yes, but not freehold. The same national land law applies in Lombok as in Bali and Jakarta: PP 18/2021 on land rights and its implementing rule, Permen ATR/BPN 18/2021. Here are the three routes side by side.
| Leasehold (hak sewa) | Hak Pakai (right to use) in your name | HGB (right to build) through a PT PMA | |
|---|---|---|---|
| Who holds it | You, as tenant of an Indonesian owner | You, as a foreign individual | Your Indonesian company with foreign shareholders |
| Stay permit needed | No | Yes, an Indonesian immigration document; in practice a KITAS or KITAP | No for the company; the director needs one to work in Indonesia |
| Duration | As agreed, usually 20 to 30 years, with or without an extension option | 30 years, extendable by 20 and renewable by 30 (80 in total) on state land | 30 years, extendable by 20 and renewable by 30 (80 in total) |
| Minimum price | None | IDR 3 billion for a landed house in NTB (about USD 168,000) | None for the land; the company has its own capital rules |
| Land size limit | None | One plot per person or family, up to 2,000 m2 | None for the land right itself |
| Registered at the land office (BPN) | No, a notarial deed | Yes, a certificate in your name | Yes, a certificate in the company’s name |
| Can carry a bank mortgage | Not in the usual way | Yes | Yes |
| Can be used for a rental business | Only through a licensed operator or your own company | Residential use only | Yes, with the right business licence |
| Main risk | Landowner disputes, family heirs, no extension | Price floor, one plot, residence permit must stay valid | Company costs and compliance; capital rules |
Sources: PP 18/2021; Hukumonline on Kepmen ATR/BPN 1241/2022 and Permen ATR/BPN 18/2021.
A point our older article got wrong: when your PT PMA “buys freehold”, it does not end up holding a Hak Milik certificate. The seller releases the Hak Milik and the land office issues an HGB to your company. The HGB is a strong, bankable, transferable title. The same applies to an individual: a house bought on Hak Milik or HGB has to be converted to Hak Pakai in your name.
Nominee arrangements. An “agreement” under which an Indonesian holds Hak Milik for you is void under Article 33 of Law 25/2007, and transfers of Hak Milik to foreigners are void under the Basic Agrarian Law. In Lombok, as in Bali, the problems tend to start when the property gains value or the nominee’s family changes.
What is different about buying in Lombok rather than Bali?
Four things matter in 2026.
- Company route still open. Since May 2026, Bali has closed 18 business codes to new PT PMAs, including villas and other short-stay accommodation (KBLI 55900), small hotels and owned or leased real estate (68111) (ANTARA, 23 July 2026). The rule is Bali only. In Lombok, a new PT PMA can still register villa rental and accommodation codes through OSS, subject to zoning and the normal capital rules.
- Lower minimum price for Hak Pakai. IDR 3 billion for a landed house in West Nusa Tenggara (NTB), against IDR 5 billion in Bali (Hukumonline).
- A special economic zone. Mandalika has its own land manager and tax incentives (see below).
- Less mature administration. More land is unregistered or registered long ago, villages are more involved in land matters, and many villas were built without permits. Due diligence takes longer and matters more.
Access is improving. Scoot raised Singapore to Lombok flights from 4 to 10 a week, total international flights at Lombok airport went from 14 to 20 a week, and Lombok to Perth and Darwin routes were awaiting licences in June 2026 (RRI, 10 June 2026). Demand is real but seasonal: star hotels in NTB ran at 38.42% occupancy in December 2024, and 6,108 foreign visitors arrived directly through Lombok airport that month, a figure that excludes the many who come by boat from Bali (BPS NTB). Build your rental forecast on these numbers, not on peak MotoGP weeks.
What is the Mandalika SEZ and does it change the rules for buyers?
The Mandalika special economic zone (Kawasan Ekonomi Khusus, KEK) was created by PP 52/2014 on 30 June 2014 and covers 1,035.67 hectares in Central Lombok (DJKN, Ministry of Finance). It is run by ITDC, the state tourism developer, which holds the land under a right of management (HPL) and grants rights to investors on top of it (detikBali, 1 July 2025). The zone includes the MotoGP circuit, a 298 hectare golf resort district, a 146 hectare district at Tanjung Aan and an eastern district of about 164 hectares, and ITDC reported more than 1.4 million visits in 2025 (Republika, 30 March 2026).
Incentives listed by ITDC in March 2026 (Republika): a tax holiday for main business activities, tax allowances, exemption from import VAT and duty on capital goods, exemption from luxury goods sales tax (PPnBM) on property in the zone, one-stop licensing, easier hiring of foreign workers and bankable land rights of up to 80 years. Most of these are for businesses investing in the zone, not for an individual buying a villa. The PPnBM exemption only matters for new residences above IDR 30 billion.
What this means for you. Inside the zone you buy from ITDC or from a developer that holds rights from ITDC, usually an HGB on ITDC’s HPL. That gives a clean, registered chain of title, but you must check the developer’s agreement with ITDC, its duration, and what happens to your right when it ends. Outside the zone, in Kuta, Selong Belanak or Tanjung Aan villages, you deal with private landowners and village records, which is where most disputes arise.
What can go wrong. Land conflicts have followed the zone since it was set up (Mongabay, 22 July 2025). In mid 2025 ITDC cleared beach stalls at Tanjung Aan for a five-star hotel project despite resident protests (detikBali). A plot sold as “next to Mandalika” may sit on land that ITDC or a village also claims. Check the boundary against the zone map before you sign.
Can you buy property on the Gili islands?
With great care. A large part of Gili Trawangan is government land: the NTB provincial government holds a right of management (HPL) over 75 of the island’s 340 hectares, recorded as regional property (Akurat, 19 August 2024). About 65 hectares of it were controlled for decades by a private company, PT Gili Trawangan Indah, while residents and businesses occupied it in practice (detikBali, 3 August 2023).
The province now manages that land itself and asks occupants to sign cooperation agreements (PKS) and pay an annual fee. In August 2023 its Gili office recommended HGB certificates for 50 plots of the former company land. But by August 2024, only about 100 of roughly 700 occupants had signed agreements, some residents were sub-letting state land to businesses without permission, and HGB issuance was blocked because the land lies within a forest conservation area, pending the islands’ spatial plan, according to the Corruption Eradication Commission (KPK) team assisting the province (Akurat, 19 August 2024).
In practice:
- On provincial land on Gili Trawangan, the person “leasing” to you may hold only a cooperation agreement with the province, or nothing at all. A sub-lease of state land without the province’s consent is exactly what the KPK flagged. Your lease can be no stronger than their right: ask for the signed agreement with the province, check that it allows sub-leasing, and check that the fees are paid.
- The KPK’s work also covered land status problems on Gili Air. On Gili Air and Gili Meno, run the same checks: who holds the certificate, whether it is private or government land, and whether the land sits in a conservation area.
- The Gilis are small islands, where coastal and small-island rules add layers: a coastal setback of at least 100 metres from the high-tide line under Perpres 51/2016, and permits for foreign investment on small islands.
Which land titles will you meet in Lombok, and which are risky?
| Document | What it is | Can you rely on it? |
|---|---|---|
| SHM (Sertifikat Hak Milik) | Freehold title of an Indonesian individual | Yes, as the seller’s or lessor’s title, after a land office check |
| SHGB (Sertifikat Hak Guna Bangunan) | Right to build of a company or individual, with an expiry date | Yes, check the expiry and extension status |
| Hak Pakai certificate | Right to use, including foreigners’ titles | Yes, check the expiry |
| HGB or Hak Pakai on HPL | A right granted on land managed by ITDC, the province or a customary community | Yes, but read the HPL holder’s agreement too |
| Girik, pipil, petok or a village letter (surat keterangan desa) | Evidence of a claim on unregistered land | No. It is a starting point for registration, not a title |
| SPPT PBB (land tax bill) | Proof that someone was billed land tax | No. It proves tax billing, not ownership |
| “Sporadic” registration in progress | Land being certified for the first time | Only once the certificate is issued and the objection period has passed |
The risks we see most in Lombok:
- Village letters on government land. A village head may issue a letter for land that belongs to the state or the province, with no authority to do so.
- Unregistered land with no clear boundary. Only the land office (BPN) can measure and fix boundaries; a village statement is not enough.
- Missing family consent. Land held as joint marital property needs both spouses’ consent to be sold, and inherited land needs every heir to sign. A missing heir can challenge the sale years later.
- Leases on leases. A developer may sub-lease plots before it has paid the landowner in full. If it defaults, the landowner can end the head lease and your sub-lease falls with it.
- Double sales and disputed boundaries, sometimes with a court case already running.
What should your due diligence cover in Lombok?
Plan two to four weeks for certified land, longer otherwise. This is the checklist we use.
| Check | Where | Red flag |
|---|---|---|
| Original certificate and land office check (pengecekan) | BPN Central, West or North Lombok, through the notary | Seller will not show the original or allow a copy; name or area does not match; block or seizure noted |
| Mortgage (Hak Tanggungan), seizure or court block | BPN record; court case search (SIPP) | Any encumbrance not released before signing |
| Seller’s identity and authority | ID, family card, marriage certificate, heirs’ statement, company deeds | Spouse or heirs absent; company director without board approval |
| Zoning and spatial plan (KKPR) | Regency spatial plan (RTRW or RDTR), OSS | Land in agricultural, forest, green or protected coastal zone; tourism use not allowed |
| Coastal setback and forest status | Spatial plan; forestry map | Building inside the 100 m beach setback; land inside a forest area |
| Road access | Site visit, neighbouring certificates, written easement | Access over a neighbour’s land with no signed right of way |
| Boundaries | BPN measurement, site visit with neighbours | Fences or walls that do not match the certificate map |
| PBB history | Five years of SPPT and receipts | Arrears; SPPT in a third party’s name |
| Building permit (PBG) and certificate of function (SLF) for existing villas | Regency building office (PUPR), SIMBG | No PBG, or an application number only |
| Utilities | PLN (electricity), PDAM or well permit (water), waste | No grid connection; water by truck only |
| Soil and slope | Geotechnical test by an engineer | Steep or filled land, landslide signs; Lombok is seismically active |
| Developer track record (off-plan) | Company search, completed projects, ITDC agreement if in the SEZ | No PBG for the project; payments demanded before permits |
Our guide to checking an Indonesian company explains how to verify a developer in the government registry.
Unpermitted villas are common. In May 2025, Central Lombok’s investment office said about 200 villas owned by foreign-invested companies had been built without a building approval (PBG), some on plantation land and hillsides, and a council member called for construction to stop until they were legalised (detikBali, 21 May 2025). West Lombok’s regent announced an amnesty for unpermitted villas, conditional on paying the levies and taxes due (DDTC, 8 May 2025). If you buy a built villa, the PBG and SLF are part of what you are paying for. Our PBG and SLF service covers both.
Which contract terms protect a buyer in Lombok?
Never pay a booking fee before a signed contract. Handshake deposits are rarely returned. The sequence that works:
- Sign an intention to purchase (ITP), memorandum of understanding or booking agreement that sets the price, the conditions and how the deposit is returned.
- Pay the deposit into an escrow account held by the notary or a neutral party, not to the seller.
- Run the due diligence.
- Sign the final agreement before a notary or land deed official (PPAT): a sale and purchase deed (AJB) for a title, or a notarial lease deed.
Clauses to insist on:
- Conditions precedent. Payment only after a clean land office check, all spouse and heir signatures, and zoning confirmation.
- Permits and delays (off-plan). Who applies for the PBG and SLF, by when, and a daily or monthly penalty for late delivery, with a right to terminate and get the money back.
- No mortgage or sale by the landowner (leasehold). The owner may not mortgage, sell or lease the land to anyone else during your lease, and any buyer of the land must take it subject to your lease.
- Head lease proof (sub-leases). The developer shows that the head lease is fully paid and allows sub-leasing.
- Extension and renewal. The extension price or formula, the notice period and who pays the 10% tax on the extension. Vague wording such as “to be agreed” is worth little at year 25.
- Access and boundaries. A signed right of way with the neighbours, a site plan attached to the deed, and who maintains the road.
- Taxes. Who pays the seller’s 2.5% or the landowner’s 10%, with proof of payment.
- Dispute resolution. Indonesian law governs land; choose the court or arbitration seat and the language that prevails.
Have a lawyer draft or review the contract. A notary or PPAT is neutral and records what the parties agree; their job is not to negotiate for you. ILA’s contract review service and notary assistance cover both sides.
What does a PT PMA need to buy land in Lombok?
Under BKPM Regulation 5/2025, a PT PMA needs IDR 2.5 billion of paid-up capital (about USD 140,000) and an investment plan of IDR 10 billion per business code and location. In sectors such as property and accommodation, land and building costs count toward the investment value (Withers). The company needs at least two shareholders, a director and a commissioner, and a business address that fits the activity. Older articles, including ours, said IDR 10 billion paid up; that changed on 2 October 2025. The setup steps and costs are in our PT PMA guide and our PT PMA formation service.
If you want to stay in Indonesia as the investor, note that the investor stay permit (E28A) still requires IDR 10 billion of shares in your name (Directorate General of Immigration, E28A). Many founders take a working KITAS as director instead.
What taxes do you pay when buying in Lombok?
The national rules apply (full tax guide):
| Transaction | Buyer pays | Seller or landowner pays |
|---|---|---|
| Purchase of a title (Hak Pakai or HGB) | BPHTB up to 5% of price (or NJOP if higher) minus the regency allowance, at least IDR 80 million | 2.5% final income tax on the gross price |
| New villa from a developer | Plus VAT at 11% effective; in 2026, VAT on the first IDR 2 billion is paid by the government for ready homes up to IDR 5 billion bought by individuals | 2.5% final income tax |
| Leasehold | No BPHTB | 10% final income tax on the lease price |
| Each year | PBB land and building tax, capped at 0.5% |
Sources: UU HKPD on BPHTB allowances (DDTC); PP 34/2016 (Setkab); PMK 90/2025 (Bisnis). A foreigner with an NPWP buying a new, ready Hak Pakai house in Lombok between IDR 3 billion and IDR 5 billion, handed over by 31 December 2026, can save up to IDR 220 million of VAT, if the project has the required house identity code.
How does the buying process work, step by step?
- Decide the structure (lease, Hak Pakai or PT PMA) based on use: holiday home, rental business or development. Rental business means a company or a licensed operator.
- Visit and shortlist. Many buyers come on a pre-investment visit visa; see our C12 pre-investment visa.
- Sign an ITP or MOU and pay the deposit into escrow.
- Run legal and technical due diligence with the checklist above.
- Set up the PT PMA if that is the route, open its bank account and pay in capital.
- Pay taxes and sign the AJB or lease deed before a PPAT or notary.
- Register the title in your name or the company’s name at the land office (not needed for a lease).
- Apply for the PBG before any construction, then the SLF before you occupy or rent.
- Register the PBB in your name and set up tax filings for any income.
Is Lombok a good investment in 2026?
It can be, with clean title in the right zone and a budget for slower occupancy than Bali. We do not quote land prices: they vary widely by title, access and zoning, and there is no reliable public index. Ask for recent notarised sales in the same village and treat brochure yields with caution. For a wider view of the east, see our guides to property investment beyond Bali and investing in Sumba.
Talk to us before you pay a deposit
The Lombok problems that cost buyers most usually start with a deposit paid before anyone checked the land. ILA reviews the title at the land office, checks zoning, access and permits, drafts or reviews the contract and coordinates with the notary, in English, French or Indonesian. Contact our team.
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Frequently asked questions
Can foreigners buy freehold land in Lombok?
No. Freehold (Hak Milik) is reserved for Indonesian citizens. Foreigners use a lease, a Hak Pakai in their own name with a stay permit, or an HGB through their own PT PMA.
What is the minimum price for a foreigner buying a house in Lombok?
IDR 3 billion for a landed house in West Nusa Tenggara under Kepmen ATR/BPN 1241/2022, on one plot of up to 2,000 m2. A lease has no minimum price.
Does Bali’s 2026 ban on new foreign villa companies apply in Lombok?
No. The 18 closed business codes apply in Bali only. A PT PMA in Lombok can still register villa and accommodation activities, subject to zoning and capital rules.
Can I buy land on Gili Trawangan?
Not freehold, and be careful with leases. A large part of Gili Trawangan is provincial land, where occupants hold at best a cooperation agreement with the province and new HGB titles were blocked as of 2024. Your lease is only as strong as their right.
Is buying inside the Mandalika SEZ safer?
The title chain is usually cleaner, because ITDC manages the land and grants registered rights. Check the developer’s agreement with ITDC and its term, and remember that land at the zone’s edge can still be disputed.
Is a village letter (surat desa) proof of ownership?
No. It supports a claim to unregistered land. Only a certificate issued by the land office (BPN) is a title.
How long does due diligence take in Lombok?
Usually two to four weeks for certified land, longer if the land is being certified for the first time or a family needs to sign.
Sources
- JDIH BPK: PP 18/2021 on Rights of Management, Land Rights, Strata Units and Land Registration
- JDIH BPK: Permen ATR/BPN 18/2021 on Procedures for Rights of Management and Land Rights
- Hukumonline: Minimum house prices for foreigners, Kepmen ATR/BPN 1241/2022 (14 February 2023)
- JDIH BPK: Law 25/2007 on Investment
- ANTARA: Bali blocks foreign investment in 18 business categories (23 July 2026)
- RRI: Singapore to Lombok flights increase (10 June 2026)
- BPS NTB: Tourism development, December 2024
- DJKN, Ministry of Finance: Mandalika SEZ case study (13 July 2023)
- Republika: ITDC fiscal incentives for Mandalika SEZ investors (30 March 2026)
- detikBali: Central Lombok council to review ITDC and residents’ conflict at Tanjung Aan (1 July 2025)
- Mongabay: Problems since the Mandalika SEZ arrived (22 July 2025)
- Akurat: KPK pushes resolution of Gili Trawangan land dispute (19 August 2024)
- detikBali: Gili Tramena office issues HGB recommendations on Gili Trawangan (3 August 2023)
- Setkab: Perpres 51/2016 on coastal setbacks
- detikBali: 200 foreign-owned villas built illegally in Central Lombok (21 May 2025)
- DDTC News: West Lombok regent offers amnesty on villa building permits (8 May 2025)
- Withers: Key takeaways from BKPM Regulation 5/2025
- DDTC News: NPOPTKP under UU HKPD
- Setkab: PP 34/2016 on income tax on transfers of land and buildings
- Bisnis: PPN DTP scheme for 2026 (6 January 2026)
- Directorate General of Immigration: E28A investor visa
- Databoks Katadata: Rupiah at IDR 17,916 per USD (5 October 2026)
