Lombok—a breathtaking tropical island just east of Bali—has emerged as a new hotspot for foreigners, not only as a travel destination but also as an ideal place to invest in property or even settle down permanently. With its stunning beaches, a more peaceful atmosphere than Bali, and rapidly improving infrastructure, Lombok offers remarkable potential for property ownership and development.

But how can a foreigner legally acquire or control land in Lombok? Let’s explore the legal options available, explained in a clear yet professional manner.

Can Foreigners Own Land in Indonesia?

Under Indonesian law, foreign nationals cannot directly own land under Title (Hak Milik). This restriction, grounded in the Basic Agrarian Law, is designed to protect national land ownership and ensure land remains in the hands of Indonesian citizens.

However, this does not mean you are excluded from enjoying the use and benefits of property in Indonesia. There are several legal mechanisms that allow foreigners to access, control, and benefit from land, whether for residential or investment purposes.

Three Legal Options for Foreigners to Access Land in Lombok.

1. Leasehold (Hak Sewa).

This is the most common and flexible method used by foreigners to access land in Indonesia. Through a private lease agreement, you rent land from an Indonesian owner for a fixed term—typically 25 years—with renewal options that can extend the lease up to 70–90 years.

• Legal, safe, and transparent.
• Ideal for private villas, tourism businesses, or farming.
• No need to establish a business entity.
• Fast and flexible process.

During the lease period, you have full rights to build, live on, or operate a business on the land, based on the terms of the lease agreement.

2. Right to Use (Hak Pakai).

Lombok is more than a picturesque island—it is home to a deeply rooted cultural identity, complete with local customs, belief systems, and social structures that must be respected. Some investors inadvertently commit cultural transgressions, such as building in sacred areas or conducting business activities that clash with local norms. These actions not only provoke community backlash but can also trigger legal action from local authorities.

• Valid for up to 80 years (30 years + 20-year extension + second 30-year extension).
• Suitable for private homes, apartments, or villas in licensed developments.
• Requires a valid stay permit (e.g., KITAS or KITAP).
• Backed by official land certificates.

This option is perfect for expatriates seeking permanent residence in Indonesia with legal certainty over their right to use the land.

3. Foreign Investment Company (PT PMA).

If your goal is to invest in tourism, hospitality, or property development in Indonesia, setting up a Foreign-Owned Company (PT PMA) is the most suitable and strategic path. A PT PMA allows you to legally acquire land under Right to Build (HGB) or Right to Use (Hak Pakai), depending on your business objectives.

• Long-term solution for commercial property investment.
• Ideal for resorts, villas, hotels, restaurants, and other real estate ventures.
• Legal access to land for up to 80 years (30 + 20 + 30 years under HGB).
• Buildings can be owned under the company’s name.

While setting up a PT PMA requires careful planning and regulatory compliance, it offers robust benefits and legal security for serious foreign investors.

The Conclusion:
Although Indonesian law prohibits direct land ownership by foreigners, there are clear, legal pathways that allow you to access, use, and profit from property in Lombok. Whether through a leasehold, a Right to Use title, or establishing a PT PMA, you can invest in property safely, legally, and confidently.
With the right approach and professional guidance, owning your dream villa, starting a hospitality business, or enjoying a peaceful retirement on this extraordinary island is entirely possible.