Yes, foreigners can hold property in Lombok, but not the way most people expect. Freehold title (Hak Milik) is reserved for Indonesian citizens, so a foreign buyer uses one of three structures instead. Each gives you a different bundle of rights, costs and obligations. This page explains what each one is, who it suits, and the one arrangement you should refuse outright.
The three legal routes
| Route | What you hold | Company needed | Typical use |
|---|---|---|---|
| Building rights (HGB) | A building right over the land, held by your PT PMA | Yes | New-build villas, running a rental business |
| Leasehold (Hak Sewa) | A notarised lease of land or a villa, commonly 25 to 30 years | No | Resale villas, smaller budgets |
| Unit lease in a managed resort | Income and personal-use rights to one unit, by contract | No | Smaller tickets, hands-off ownership |
Building rights (HGB) through a PT PMA
HGB is a building right over land: the strongest position a foreign buyer can reach, held through an Indonesian company with foreign ownership rather than in your own name. It is how most new-build villas in Kuta are sold, and it is the only route that lets you legally run a rental operation yourself. Forming the company costs around IDR 29 million in notary fees, needs at least two shareholders, a director and a commissioner, and brings ongoing accounting and reporting duties. It makes sense when you are running a genuine rental business; it is more structure than a single holiday home needs. Our guide on choosing between a PT PMA and a leasehold compares the two.
Leasehold: the simpler route
A leasehold is a notarised agreement letting you use land or a villa for an agreed term, usually 25 to 30 years, often with an extension negotiated at the start rather than left to goodwill later. It is a deed drawn up by a notary, not a title registered at the land office, which is the practical difference from HGB. Leases are paid up front or in blocks, depending on what the deed says. You can usually sell the remaining term or pass it on, though most leases require the landowner's consent, so check that clause before you assume it. What you do not get is the land itself, so the value of the deal depends on how many years remain and what the extension terms say.
Unit lease: the contractual route
A unit lease is a contract with the company that operates a building, giving you the income and personal-use rights to one unit for the term of that company's land lease. You hold no land and set up no company. It is how Habitat CoLiving Kuta is structured: four of the 20 studios are offered from USD 50,000, each participating unit receives an equal share of the resort's net distributable profit each quarter, and you can live in your own studio for a month or more on 60 days' notice.
The arrangement to refuse: nominee ownership
You will still hear about "nominee" structures, where land is registered to an Indonesian individual while a side agreement gives the foreign buyer control. Do not do it. The side agreement is not enforceable, the person on the title is the legal owner, and buyers have lost both the land and the money. Every structure above keeps your rights either in your own name, your own company, or a contract with the operating company.
What to check before signing, whichever route you take
- The land. Who holds the title, for how long, and does your agreement's term fit inside theirs?
- Encumbrances. Your notary confirms there is no mortgage or competing claim, and that access rights are registered.
- Permits. Ask for the building approval (PBG) and, if guests will stay, the licence to rent.
- The builder and operator. What have they delivered before, and can you go and see it?
- Payment schedule. Instalments should follow visible construction stages, and you should know which account holds the money.
An Indonesian notary reviews the agreement with you, and a tax adviser where you live explains how the income is taxed at home. For the full process, costs and contracts, read our guide to investing in Lombok property.
Common questions
Can a foreigner own land in Lombok?
No. Freehold title (Hak Milik) is reserved for Indonesian citizens. Foreigners hold building rights (HGB) through a foreign-owned company (PT PMA), take a notarised leasehold (Hak Sewa), or sign a contractual unit lease in a managed resort.
Is a nominee arrangement legal in Indonesia?
No. Putting land in an Indonesian friend's name while a side agreement gives you control is not enforceable, and the land can be lost outright. Every structure on this page keeps your rights in your own name or your own company.
How long can a foreigner lease land in Lombok?
Leases are commonly agreed for 25 to 30 years, often with an extension negotiated in advance. Habitat CoLiving Kuta sits on a 30-year land lease held by the operating company.
Do I need to live in Indonesia to buy?
No. A leasehold and a unit lease need no residency, and a PT PMA requires company formation but not residency.