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Foreigners cannot directly own freehold land (Hak Milik) in Indonesia, but there are three legal and secure investment options:

1️⃣ Leasehold (Hak Sewa) – The Most Common Property Investment Option

✔ Foreigners can lease land or property for up to 80 years.
✔ No need for an Indonesian partner or company.
✔ Ideal for villa investments, rental properties, and personal use.

💡 Best for: Buying a villa in Kuta, Selong Belanak, or Tampah Hills to rent out on Airbnb.

2️⃣ PT PMA (Foreign-Owned Company) – Own Property & Start a Business

✔ Allows foreign investors to legally buy and develop land.
✔ Grants a Hak Guna Bangunan (HGB) title, which allows full property control.
✔ Can operate a business, such as a boutique hotel or rental management company.

💡 Best for: Investors looking to develop larger projects, like hotels, eco-resorts, and commercial properties.

Lombok is becoming a great place to invest for several reasons. First, its location is perfect, and it’s full of natural beauty. Plus, the government is really working on making the island’s roads, bridges, and other facilities better. People also like Lombok for its unique culture, growing economy, lots of new houses and buildings, increasing number of tourists, and exciting new projects.

The island’s tourism is booming, and with all the new roads and buildings being made, it’s a great time to think about investing in businesses related to tourism or construction. Lombok is quickly becoming a popular spot for visitors, offering beautiful scenery and a friendly vibe. Getting involved in investment here means you’re joining in on an opportunity that’s just starting to take off, especially in areas that welcome tourists and support the island’s development.

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.

Want to learn more, read our post on why is Lombok is the best place to invest right now. 

According to other development projects in Lombok, building a home in Lombok starts at a cost of $600 per square meter. Some other high-end places offer villa constructions at $1300 per square meter.

These costs can vary greatly depending on the build quality and the materials used, such as luxurious wood or marble.

Additionally, constructing a house in a well-known tourist area can significantly increase the expenses, sometimes even doubling them.

Lombok is emerging as a more attractive investment option than Bali, mainly due to its more affordable and potentially more profitable property investment opportunities. Bali has been facing challenges with over-tourism and excessive investment since 2020, which has impacted its appeal to new investors.