Last Updated on March 15, 2025 by Yasmina
Lombok is quickly becoming one of the best investment destinations in Indonesia. It offers affordable property, growing tourism, and strong government support for foreign investment. Whether you’re interested in real estate, tourism, or starting a business, Lombok presents exciting opportunities with high ROI potential.
But as a non-Indonesian national, you may wonder: How can I legally and securely invest in Lombok as a foreigner?
This guide explains everything you need to know about investing in Lombok as a foreigner in 2025, including legal ownership options, the best investment locations, expected returns, and step-by-step processes to make your investment secure and profitable.
Table of Contents
1. Why Invest in Lombok?
Lombok is often compared to Bali 20 years ago—still affordable, less crowded, and full of investment potential.
Top Reasons to Invest in Lombok in 2025:
✔ Lower property prices than Bali, with rapid appreciation potential.
✔ Growing tourism industry—Mandalika is a priority development zone.
✔ 8-12% ROI on rental properties, outperforming many global markets.
✔ Government infrastructure projects are boosting land and property values.
✔ Foreign investment-friendly—Legal structures make it easy to invest securely.
💡 Fact: The Indonesian government has designated Mandalika as a Special Economic Zone, meaning huge growth in tourism and property demand over the next decade.
2. Can Foreigners Own Property in Lombok?
Indonesia has strict land ownership laws, meaning foreigners cannot directly own freehold land (Hak Milik). However, foreigners can still legally invest in property through other structures:
✔ Leasehold (Hak Sewa) – Long-term property lease, up to 80 years
✔ PT PMA (Foreign-Owned Company) – Own land & buildings under a business entity
Each method has its own advantages and legal requirements, which we’ll explore in detail below.
3. Legal Ways to Buy Property in Lombok as a Foreigner
Option 1: Leasehold (Hak Sewa) – The Most Common Option
✔ Foreigners can lease land or property for up to 80 years.
✔ No Indonesian partner or company is required.
✔ Ideal for villas, rental properties, and personal use.
🔹 How it works:
- A leasehold agreement is made with the landowner for 25-30 years, with renewal options.
- Foreigners have full rights to develop, rent, and sell the lease.
- Leasehold properties can appreciate in value and be resold.
💡 Best for: Investors looking to own and rent out villas in prime areas like Kuta and Selong Belanak.
Option 2: PT PMA (Foreign-Owned Company) – Own Property Legally
✔ The safest way for foreigners to “own” property in Indonesia.
✔ PT PMA (Penanaman Modal Asing) allows foreign business ownership.
✔ Can buy land under Hak Guna Bangunan (HGB) and build properties.
🔹 How it works:
- A PT PMA company is established in Indonesia.
- The company can purchase and develop property legally.
- The land is held under a Hak Guna Bangunan (HGB) title, valid for 80 years + renewals.
💡 Best for: Investors looking to own land, develop commercial properties, or run a rental business legally.
4. Where to Buy Property in Lombok?
Not all areas in Lombok offer the same investment potential. If you’re looking for high capital appreciation, strong rental demand, or premium beachfront properties, these are the best locations to invest in 2025:
| Location | Best For | Investment Potential |
|---|---|---|
| Kuta | Expats, digital nomads, rental properties | High demand, strong ROI |
| Selong Belanak | Luxury villas, beachfront resorts | Premium pricing, long-term appreciation |
| Tampah | Exclusive, eco-luxury villas | Tampah has one of Lombok’s most premium developments |
| Gerupuk & Are Guling | Surf tourism, eco-lodges | Growing market, lower entry cost |
| Gili Islands | Hotels, dive centers, beachfront businesses | High tourism foot traffic |
| Senggigi | Retirement properties, hospitality | Stable market, ocean views |
💡 Investment Tip: Properties in Selong Belanak are seeing fast appreciation.
5. Step-by-Step Guide to Investing in Lombok
Step 1: Choose Your Investment Type
✔ Real estate? Secure a leasehold agreement or PT PMA ownership.
✔ Tourism business? Set up a PT PMA for legal operation.
✔ Agriculture? Look for long-term land leasing options.
Step 2: Set Up a Legal Structure
✔ If buying property, secure a leasehold contract.
✔ If starting a business, register a PT PMA with a legal consultant.
Step 3: Conduct Due Diligence
✔ Verify land titles, ownership, and zoning laws.
✔ Hire a trusted notary (PPAT) and legal expert.
Step 4: Secure Permits & Finalize Contracts
✔ If buying property, ensure contracts are notarized & registered.
✔ If starting a business, get operating licenses & permits.
Step 5: Develop or Rent Your Property
✔ If renting out property, market on Airbnb & real estate platforms.
✔ If starting a business, build local partnerships & grow your brand.
5. Expected ROI & Investment Costs in Lombok
| Investment Type | Price Range (USD) | ROI Potential |
|---|---|---|
| Land (per sqm) | $20 – $250 | High appreciation in prime areas |
| 1-Bedroom Villa | $150,000 – $200,000 | 8-12% annual ROI |
| 2-Bedroom Villa | $180,000 – $300,000 | Strong rental demand |
| Luxury 3+ Bedroom Villa | $250,000 – $500,000+ | High-end rental market |
💡 Tip: Short-term rentals generate higher returns than long-term leases.
FAQs About How to Invest in Lombok as a Foreigner
Can foreigners buy land in Lombok?
No, foreigners cannot own freehold land but can invest through leasehold (Hak Sewa) or a PT PMA structure.
How long does it take to set up a PT PMA in Lombok?
The process typically takes 6-8 weeks, including legal registration, licensing, and permits.
What is the best area for investment in Lombok?
Kuta, Selong Belanak, and the Gili Islands offer the highest rental yields and appreciation potential.
Can foreigners rent out property in Lombok?
Yes! Under a leasehold or PT PMA structure, foreigners can legally rent out properties for income.
What is the average ROI for property investments in Lombok?
Most well-located villas generate 8-12% annual ROI, making Lombok one of Indonesia’s best property investment markets.
Final Thoughts: Is Lombok a Good Investment for Foreigners?
✅ YES! Lombok offers affordable property, high tourism demand, and strong government support for foreign investments.
✅ Best investments for foreigners: Real estate, tourism, eco-businesses, and hospitality.
✅ Secure foreign ownership: Leasehold, PT PMA, and Hak Pakai options.
Lombok is a high-growth investment market, and now is the perfect time to enter before prices rise further!
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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