What Investors Should Check Before Buying in Lombok

Start with the land. Verify the certificate, who holds it, and that it is free of disputes or encumbrances. Confirm the chain from the landowner to the structure you are buying, and that the developer has a legitimate right to build and sell. In an emerging market, clean title is the foundation everything else rests on.

A property needs the correct building permit — the PBG (Persetujuan Bangunan Gedung), which replaced the older IMB. A missing or incorrect permit can mean fines, problems with utilities, or difficulties reselling. Ask to see it, and confirm it matches what is actually being built.

Confirm exactly how you, as a foreigner, will hold the property — Hak Pakai, Hak Sewa leasehold, or HGB via a PT PMA — and that the structure is properly documented. Understand the term, any extension rights and the resale implications. Our guides on leasehold vs HGB and foreign ownership in Lombok cover the options.

The developer is the biggest variable in an emerging market. Ask for completed, delivered projects, and check whether any are operating today — a live property you can verify on Booking.com or Airbnb, with real reviews, is worth more than any render. Assess construction quality and whether the developer can manage the asset after handover. The framework in best property developers in Lombok sets out the criteria.

Treat every projection as a starting point to be tested, not a promise. Ask what occupancy and nightly rate are assumed, what costs are deducted before distributions, and what the management fee is. Stress-test with lower occupancy and higher costs. Finally, understand the exit: how and to whom you could resell, and how remaining leasehold term affects value. The returns breakdown shows how to read a projection critically.

Engage your own Indonesian property lawyer and, where relevant, a tax advisor — independent of the seller. They will verify documents, confirm the structure and flag risks specific to your situation. This is the single most cost-effective step in the entire process, and it is not one to skip.