Last Updated on April 6, 2025 by Yasmina
Lombok is quickly becoming one of Indonesia’s most attractive property investment destinations, offering affordable land prices, high rental yields, and rapid infrastructure development. But if you’re a foreigner, you might be wondering:
Can foreigners buy property in Lombok?
The short answer is yes, but not freehold. While Indonesian law restricts freehold land ownership (Hak Milik) to Indonesian citizens, there are secure and legal ways for foreigners to invest in Lombok real estate.
This guide will walk you through all the legal options, costs, and best investment strategies for foreigners looking to buy property in Lombok.
Table of Contents
1. Can Foreigners Own Land in Lombok?
No, Foreigners Cannot Own Freehold Land (Hak Milik)
Indonesia’s land laws prohibit foreign individuals from owning freehold property (Hak Milik). Freehold ownership is only available to Indonesian citizens.
Yes, Foreigners Can Legally Own Property Through Other Structures
While direct freehold ownership is not possible, foreigners can legally invest in Lombok property through these options:
✔ Leasehold (Hak Sewa) – Secure long-term leases (25-80 years).
✔ PT PMA (Foreign-Owned Company) – Legally own land and buildings through a business entity.
Fact: Many foreign investors in Lombok use leasehold agreements or set up PT PMA companies to invest in real estate legally.
2. Legal Ways for Foreigners to Buy Property in Lombok
Leasehold (Hak Sewa) – The Most Common Option
✔ Foreigners can lease land or property for up to 80 years.
✔ No Indonesian nominee is required.
✔ You can sell or transfer the lease to another buyer.
Best for: Investors looking to buy and rent out villas, hotels, or land for development.
PT PMA (Foreign-Owned Company) – Full Ownership for Business & Investment
✔ A PT PMA (foreign-owned company) can buy land and property under Hak Guna Bangunan (HGB).
✔ Allows ownership of land and buildings for commercial use.
✔ Renewable for up to 80 years.
Best for: Investors looking to buy land, build resorts, or operate rental properties legally.
3. Best Places to Buy Property in Lombok
Not all areas in Lombok offer the same investment potential. The best location depends on your goals—rental income, capital appreciation, or personal use.
Best Locations to Buy Property in Lombok (2025)
| Location | Best For | Current Land Prices (per sqm) |
|---|---|---|
| Kuta Lombok | High rental demand, digital nomads | $80 – $250 |
| Selong Belanak | Luxury beachfront villas | $100 – $300 |
| Tampah Hills | Exclusive high-end investments | $120 – $400 |
| Gerupuk & Are Guling | Surf tourism & eco-lodges | $50 – $150 |
Tip: Selong Belanak is becoming a luxury hotspot, making it one of the best areas for high-end villa investments.
4. How Much Does It Cost to Buy Property in Lombok?
Property prices in Lombok are significantly lower than in Bali, but they are rising fast as more investors enter the market. Read our detailed article on the subject here: How Much Does Land in Lombok Cost? and Cost of building a villa in Lombok.
5. How to Buy Property in Lombok as a Foreigner (Step-by-Step)
Step 1: Choose the Right Ownership Structure
✔ Leasehold (Hak Sewa) → Best for long-term property investment.
✔ PT PMA (Foreign-Owned Company) → Ideal for large-scale investments.
Step 2: Find the Right Property
✔ Visit different areas and compare prices.
✔ Work with a trusted real estate agent.
Step 3: Conduct Due Diligence
✔ Verify land certificates and ownership rights.
✔ Check zoning laws and permits.
✔ Ensure the land has legal road access.
Step 4: Sign a Sales Agreement
✔ Work with a licensed notary (PPAT).
✔ Ensure the contract includes renewal options.
Step 5: Register the Transaction & Pay Taxes
✔ Pay the BPHTB (land acquisition tax).
✔ Register the leasehold agreement with the National Land Agency (BPN).
Tip: Never pay 100% upfront—use a structured payment plan tied to legal documentation.
FAQs About Buying Property in Lombok
1. Can foreigners own land in Lombok?
No, foreigners cannot own freehold land but can invest through leasehold (Hak Sewa) or a PT PMA structure.
2. How long does a leasehold agreement last in Lombok?
Leasehold agreements typically last 25-30 years, with options to extend up to 80 years.
3. Can foreigners rent out property in Lombok?
Yes! Foreigners can legally rent out villas under a leasehold agreement or operate rentals through a PT PMA company.
4. What ROI can I expect from a rental villa in Lombok?
Most well-located villas generate 8-15% annual ROI, with high occupancy rates in tourist hotspots.
5. Is buying property in Lombok safe for foreigners?
Yes, if you follow legal ownership structures (leasehold or PT PMA), verify all documents with a trusted notary.
Final Thoughts: Is Buying Property in Lombok a Good Investment?
YES! Lombok offers affordable real estate, high rental demand, and strong capital appreciation.
Best investment locations: Kuta, Selong Belanak, Tampah, and Torok.
Secure foreign ownership: Leasehold and PT PMA options.
If you’re looking for a high-potential investment before prices rise further, Lombok is one of the best choices in Southeast Asia right now!
Ready to invest in Lombok? Get started today before the market heats up even more!
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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