Lombok Investment Insights

    Can Foreigners Invest in Property in Lombok?

    Updated June 2026 · By Malasama Development

    Can foreigners invest in property in Lombok?

    Yes — foreigners can legally invest in property in Lombok. While non-Indonesians cannot hold freehold (Hak Milik) title directly, there are three well-established legal routes: Hak Pakai (Right to Use, up to 80 years cumulative), Hak Sewa (leasehold, commonly 25–40 years and extendable), and HGB (Right to Build) held through a PT PMA foreign-owned company. The right structure depends on your goals, budget and exit plan, and should always be confirmed with an independent Indonesian property lawyer.

    The three legal routes for foreigners

    • Hak Pakai (Right to Use). Granted to foreigners who are Indonesian residents (with a valid permit). Terms can extend up to 80 years cumulatively. Suitable for a personal villa or a held-for-income property.
    • Hak Sewa (Leasehold). A lease of land/property for a fixed term, commonly 25–40 years, often with agreed extension options. The most common route for managed villa and studio investment, as it is straightforward and transferable.
    • HGB via PT PMA. A foreign-owned Indonesian company (PT PMA) can hold HGB (Right to Build) title — typically used for larger, commercial-scale or portfolio investments and for those who want a corporate ownership vehicle.

    What about permits and due diligence?

    Beyond title, a legitimate project needs the correct building permit (PBG, formerly IMB) and clean land certification. Before investing, verify the land certificate, the developer's right to build, the PBG, and that the structure you are buying into is correctly documented. A reputable developer will provide this transparently. Our broader Indonesia property guide for foreigners covers taxes and the full due-diligence checklist.

    Which structure is right for an investor?

    For a hands-off, income-producing investment, Hak Sewa leasehold (or Hak Pakai for residents) is the most common and simplest route, while a PT PMA suits larger or multi-asset holdings. The trade-offs are cost, duration, control and resale value, all of which an independent advisor can model for your situation. Malasama Development structures each project clearly and guides investors through the process — but the independent legal review is always yours to commission.

    Sources

    • Indonesian Agrarian Law No. 5/1960
    • Government Regulation PP 18/2021 on land rights for foreigners

    Frequently Asked Questions

    Can a foreigner own freehold property in Indonesia?

    No. Freehold (Hak Milik) is reserved for Indonesian citizens. Foreigners invest through Hak Pakai, Hak Sewa leasehold, or HGB held by a PT PMA company — all legally recognised structures.

    How long can a foreigner hold property in Lombok?

    Hak Pakai can extend up to 80 years cumulatively. Hak Sewa leaseholds are commonly 25–40 years with possible extensions. HGB via a PT PMA is granted for 30 years and renewable. Terms vary by project and should be confirmed in the contract.

    Is it safe to invest as a foreigner?

    Indonesia has a recognised legal framework for foreign property investment, and thousands of foreigners hold property through these structures. Safety depends on proper due diligence: verify title, permits and the developer's track record, and use an independent lawyer.

    Do I need to live in Indonesia to invest?

    Not necessarily. Hak Sewa leasehold and PT PMA structures do not require residency, while Hak Pakai generally does require a residence permit. The appropriate route depends on your residency status and goals.

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