Last Updated on April 8, 2025 by Yasmina
Lombok is quickly becoming a hotspot for real estate investment, attracting buyers looking for affordable land prices, strong growth potential, and a laid-back island lifestyle. But buying land in Lombok requires careful planning, legal understanding, and due diligence to avoid costly mistakes.
Whether you’re an investor, developer, or someone dreaming of building a villa, this Buying Land in Lombok checklist will help you make a safe and profitable purchase.
Table of Contents
1. Choose the Right Location
Lombok offers diverse landscapes, from beachfront plots to hillside retreats. Your choice of location will significantly impact land value, rental potential, and long-term appreciation.
Best Areas to Buy Land in Lombok
✔ Kuta Lombok – The most developed area, perfect for tourism and rental investments.
✔ Selong Belanak – A premium destination for luxury villas and eco-resorts.
✔ Are Guling & Gerupuk – Popular among surfers, offering strong rental demand.
✔ Gili Islands – Ideal for beachfront tourism developments.
✔ North Lombok – A quieter, emerging market with lower land prices.
Tip: Visit the area in person and spend time there before making a purchase. A land investment should match your goals—whether it’s a rental property, personal retreat, or long-term appreciation.
2. Verify the Land Certificate (Hak Milik, HGB, or Leasehold)
Land ownership laws in Indonesia can be complex, so understanding title types is crucial.
Types of Land Titles in Lombok
✔ Hak Milik (Freehold Ownership) – Only available to Indonesian citizens.
✔ Hak Guna Bangunan (HGB – Right to Build) – A long-term lease for foreigners via a PT PMA (foreign-owned company).
✔ Hak Sewa (Leasehold) – Foreigners can lease land for up to 80 years, making it the most common option.
Tip: Always request a copy of the land certificate and verify its authenticity with the National Land Agency (BPN).
3. Conduct Due Diligence on Land Legality
To avoid legal issues, ensure the land is legally registered and free from disputes.
✔ Check for multiple owners – Some plots are owned by several family members, which can complicate sales.
✔ Confirm the land zoning – Some areas are restricted for agricultural use and cannot be developed.
✔ Verify road access – Some land plots do not have legal road access, affecting future development.
✔ Review any outstanding taxes or claims – Ensure there are no unpaid land taxes or ownership disputes.
Tip: Work with a local notary (PPAT) or real estate legal consultant to verify all legal documents before signing any agreements.
4. Understand Leasehold Agreements for Foreign Buyers
Since foreigners cannot own freehold land in Indonesia, leasehold agreements (Hak Sewa) are the safest way to invest.
Key Points in a Leasehold Agreement
✔ Lease duration: Typically 25-30 years, with renewal options up to 80 years.
✔ Clear terms on renewal: Ensure the agreement specifies renewal conditions to avoid legal disputes.
✔ Payment structure: Avoid full upfront payments; structured installments provide security.
✔ Land usage rights: Confirm that the lease allows you to build, rent, or sell the property.
Tip: A well-structured leasehold can be as valuable as freehold if properly secured with legal contracts.
5. Secure a Notary (PPAT) & Legal Assistance
Buying land in Lombok involves complex legal procedures. A trusted notary (PPAT) will ensure:
✔ The land certificate is legit and clear of disputes.
✔ The sale agreement is properly drafted and signed.
✔ The ownership transfer is correctly registered with BPN.
Tip: Always hire an independent notary rather than one recommended by the seller to ensure neutrality.
6. Check Infrastructure & Development Plans
Not all land plots have access to essential infrastructure, which can increase costs and delay construction.
✔ Road Access – Ensure there is a legal right of way to your land.
✔ Electricity & Water – Some areas require solar power or deep wells.
✔ Drainage & Flood Risk – Avoid areas prone to seasonal flooding.
✔ Future Government Projects – Look for upcoming infrastructure developments that could increase land value.
Tip: Speak with locals and check government planning offices for future road, airport, or tourism projects.
7. Negotiate the Price & Payment Terms
Land prices in Lombok vary widely depending on location, accessibility, and demand.
✔ Negotiation strategies:
- Compare nearby land sales before making an offer.
- Negotiate lease extension terms upfront to avoid future price hikes.
Tip: Never pay 100% upfront—structure payments based on contract milestones.
8. Finalizing the Land Purchase
Once due diligence is complete, the final steps of buying land in Lombok include:
1️⃣ Sign the Sale & Purchase Agreement (AJB) with a notary.
2️⃣ Pay the agreed amount using a secure escrow or bank transfer.
3️⃣ Register the transaction with the National Land Agency (BPN).
4️⃣ Obtain your land certificate and update ownership records.
Tip: Keep copies of all official documents and payment receipts for future reference.
Final Thoughts: Is Buying Land in Lombok a Good Investment?
Yes! Buying land in Lombok offers:
✅ Affordable entry prices compared to Bali.
✅ Strong tourism growth, boosting property value.
✅ High ROI potential for rental villas or long-term appreciation.
✅ Upcoming government projects (Mandalika, new roads, airport expansion).
However, due diligence, legal security, and choosing the right location are essential for a safe and profitable investment.
If you’re serious about buying land in Lombok, this checklist will help you avoid mistakes and maximize your returns.
FAQs
1. Can foreigners buy land in Lombok?
Foreigners cannot directly own land but can lease land (Hak Sewa) or buy via a PT PMA (foreign-owned company).
2. What is the minimum investment for land in Lombok?
Land prices start as low as $30 per sqm inland and $200 per sqm beachfront, depending on location.
3. How long does it take to complete a land purchase?
With proper due diligence, the process typically takes 4-6 weeks if all documents are in order.
4. Are there risks when buying land in Lombok?
Yes, risks include unclear land titles, zoning restrictions, and fake ownership claims. Always verify documents with a notary.
5. What are the best areas to buy land for investment?
Top locations include Kuta, Selong Belanak, Are Guling, Torok, Tampah, Gerupuk, and the Gili Islands due to high tourism demand.
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 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!
Email: hello@nourestates.com
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