How to buy land in Kuta Lombok

Lombok, an island experiencing rapid growth in tourism and real estate investment, offers various land options ideal for commercial, residential, and long-term investment projects. Understanding the legal aspects and technical characteristics of each land type is crucial to ensuring a secure and profitable investment.

1. Types of Land in Lombok

In Lombok, land is primarily classified into three legal categories that determine ownership rights and restrictions for foreign investors:

HGB (Hak Guna Bangunan): This title grants the right to construct and develop buildings on the land for a specified period (typically up to 30 years, with the possibility of extensions for an additional 20 and 30 years). This is the best option for foreign investors operating through a PT PMA (a foreign-registered company in Indonesia). It is important for investors to conduct a legal audit to verify that the title is properly registered with the BPN (Badan Pertanahan Nasional), Indonesia's National Land Agency.
Freehold (Hak Milik): This is an absolute ownership right, reserved exclusively for Indonesian citizens. Foreigners wishing to acquire land under this category can do so by establishing legal agreements with local partners or by creating a PT PMA that leases the property. Obtaining legal advice is essential to draft clear contracts outlining the responsibilities and rights of each party.
Leasehold (Long-term Lease): This model allows foreign investors to lease land for periods typically ranging between 25 and 99 years. It is a secure and common option in Lombok's real estate market. Contracts should clearly specify renewal and extension conditions. Additionally, including clauses that define property improvements during the lease period is recommended to protect the investment.

2. Key Investment Areas in Lombok

Kuta Lombok: A high-demand tourist area with great potential for commercial projects and luxury villas. Its steadily improving infrastructure ensures high returns on real estate investments. It is especially attractive for boutique villa developments due to its proximity to iconic beaches such as Tanjung Aan and Selong Belanak.
Selong Belanak: An emerging destination for premium tourism, ideal for boutique villas, luxury resorts, and sustainable projects. The increasing investment in infrastructure in this area has raised land value, making it an excellent option for long-term investors.
Are Guling: Known for its waves and tranquil surroundings, this area is perfect for wellness retreats, eco-resorts, and low-impact real estate projects. Its natural appeal guarantees strong demand in the eco-tourism market.
Gerupuk: A surfing hotspot attracting a niche tourist audience, ideal for accommodation complexes focused on water sports. This area is also gaining popularity among those looking to build hostels or surf camps.
Tanjung Aan: A rapidly developing tourist area with highly valued land for luxury real estate developments and boutique hotels. The Indonesian government has shown interest in promoting this area as a key destination for luxury tourism, further increasing its growth potential.

3. Technical Aspects to Consider When Choosing Land

Feasibility Study: Conducting a geotechnical soil analysis is crucial to assess the stability of the land, especially in coastal areas. The presence of volcanic soil in Lombok can influence subsurface composition, so consulting specialized engineers is highly recommended.
Infrastructure Access: Verify proximity to electrical networks, potable water, and sewage systems. Investing in areas that already have these connections significantly reduces development costs.
Zoning and Regulations: Ensure the land is designated for the type of development you intend to build. Certain areas are designated exclusively for tourist or residential projects, so obtaining a building permit (IMB) is essential.
Natural Risk Assessment: Consider factors such as flood risks, erosion, or landslides. Lombok, being an island with varied terrain, requires detailed environmental analysis to safeguard your investment.
Legal Documentation: Verify that the land has clear titles, free of legal disputes or inheritance issues. A thorough due diligence process will help you avoid future legal complications.

4. Legal Process for Acquiring Land in Lombok

Land Search: Conduct detailed research and visit the land in person to assess its conditions.
Document Verification: Request a copy of the property certificates (SHM or SHGB) and verify their authenticity with the BPN.
Sale Agreement Signing: Draft a clear agreement that includes all purchase or lease terms.
Tax Payment: Fulfill tax obligations, including property transfer taxes.
Property Registration: Complete the process by registering the property with the BPN to ensure the legality of your investment.

At Lombok Invest Paradise, we have a team of experts to guide you through every step of the investment process to ensure legal security and the success of your real estate project.

Take advantage of the opportunities Lombok offers and grow your investment in paradise!