Last Updated on February 13, 2025 by Yasmina
Explore what a Leasehold Property Hak Sewa in Lombok is and why it’s a popular choice for foreign investors. Learn how leasehold agreements work, the benefits, and how to secure one.
Understanding Leasehold Property Hak Sewa in Lombok
Foreign investors often find leasehold properties to be the most accessible way to invest in Indonesia. A leasehold agreement (Hak Sewa) provides long-term rights to use and develop land without owning it outright, making it a legally recognized and stable option for non-Indonesian buyers.
Key Features of Leasehold Agreements
How Leasehold Works
- Lease Duration: Typically, leases last for 25 years, with renewal options for another 20-25 years.
- Usage Rights: While the landowner retains ownership, lessees can use, develop, or rent the leasehold property as per the lease agreement.
- Renewal Terms: Renewal terms should be explicitly mentioned in the contract, giving you clarity about long-term use.
Legal Protections
Leasehold agreements are protected by Indonesian law, ensuring that both parties fulfill their contractual obligations.
Pro Tip: Always ensure the lease includes clauses for dispute resolution and extensions to safeguard your investment.
Benefits of Leasehold Property for Foreigners
Why Choose Leasehold?
- Cost Efficiency: Leasehold agreements are more affordable than freehold or PT PMA arrangements.
- Simplicity: Easier to establish compared to setting up a foreign-owned company (PT PMA).
- Flexibility for Development: Ideal for building villas, resorts, or commercial properties.
- Accessibility: No requirement for Indonesian citizenship, making it an ideal option for foreign investors.
Who Should Consider Leasehold?
- Vacation property buyers.
- Entrepreneurs in the tourism industry.
- Long-term investors looking for stable, affordable options.
Step-by-Step Guide to Securing a Leasehold Property
1. Choose the Right Property
- Location Matters: Select areas with high growth potential, such as Kuta, Mandalika, or Senggigi.
- Zoning Regulations: Ensure the property’s zoning aligns with your intended use.
2. Work with Licensed Professionals
- Agents: Opt for reputable agents experienced in leasehold agreements.
- Legal Experts: Engage a notary (PPAT) to draft and register the agreement.
3. Conduct Thorough Due Diligence
- Verify land titles.
- Check for encumbrances or disputes.
- Confirm renewal options.
4. Negotiate Lease Terms
- Clarify terms for extensions, rent increments, and dispute resolution.
Pro Tip: Always request an English translation of the agreement for clarity.
Financial Considerations
Costs to Budget For
- Annual Lease Payments: Calculated based on the size and location of the property (typically per are or 100 square meters).
- Notary Fees: Covers agreement drafting and registration.
- Taxes: Rental income tax applies if the property is leased out.
- Transfer Fees: If purchasing an existing lease, transfer costs may apply.
Leasehold Property vs. Freehold Property
Key Differences
- Ownership: Leasehold provides usage rights, while freehold (Hak Milik) offers outright ownership but is restricted to Indonesians.
- Costs: Leasehold agreements are more affordable.
- Flexibility: Leasehold allows easy entry into the market without complex ownership structures.
Popular Locations for Leasehold Properties in Lombok
Top Areas:
- Kuta Lombok: A hotspot for vacation rentals with high tourist demand.
- Are Guling: Amazing beach views within 10 mins of Kuta.
- Tampah: The sweet spot in between Kuta and Selong Belanak
- Selong Belanak: Perfect for beachfront properties and eco-friendly investments.
Tips for Securing a Successful Leasehold Investment
- Understand Local Laws: Stay updated on zoning changes and leasehold regulations.
- Opt for Prime Locations: Choose areas with infrastructure growth to ensure value appreciation.
- Plan for Renewal: Negotiate favorable renewal terms in the initial agreement.
- Work with Trusted Partners: From agents to legal advisors, rely on experienced professionals to guide you.
FAQ: Leasehold Properties in Lombok
How long does a leasehold last?
Typically 25 years, with options to renew for an additional 20-25 years.
Can I sell a leasehold property?
Yes, you can transfer your leasehold rights, subject to landowner approval.
What happens if the lease expires?
The rights revert to the landowner unless a renewal has been negotiated.
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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