How to Buy Land in Kuta Lombok For Foreigners and Locals

JN Wirajagat

Your Personal Consultant

Kuta Lombok, famous for its pristine beaches and booming tourism industry, is rapidly becoming one of Indonesia’s most sought-after property investment destinations. Whether you’re dreaming of building a private villa, opening a boutique resort, or simply making a smart investment, buying land in Kuta Lombok offers tremendous potential — but it must be done carefully. This guide explains everything you need to know about how to buy land in Kuta Lombok, whether you’re an Indonesian citizen or a foreign investor.

 5/5

Jagat has a lot of knowledge, expertise but also the ability to guide, even “educate” and give the right advice at the right time. Our experience so far in the process has been exclusively positive. We initially had a complicated case with many factors to work out, but Jagat managed to find a more streamlined path through our prosess. Highly recommended. 🙂

For those of you out there, like us, maybe trying to figure out things from the other side of the world. It is crucial to single out who you can trust, and who is capable to help with my particular deal or problem. Rest assured; if you read this, the search is over.

OLAV SVERRE ARFLOT

Norwaygian
CEO PT Olavann Beach Apartment

1. Understand the Legal Framework

Indonesia has specific regulations when it comes to land ownership, especially for foreigners. Indonesian citizens are entitled to full ownership under titles such as Hak Milik (Freehold Title). Foreigners, on the other hand, cannot directly own freehold land. However, there are several legal pathways available:

Leasehold (Hak Sewa): This allows foreigners to lease land for long terms, typically up to 30 years, with options to extend.
Right to Use (Hak Pakai): Under certain conditions, foreigners can obtain a Right to Use title, primarily for residential purposes.
Right to Build (Hak Guna Bangunan/HGB : By establishing a PT PMA (Foreign Investment Company), foreigners can secure land under a HGB title, which for 20 years + 30 years + 20 year (80 years).

2. Find the Right Plot

Choosing the right location is critical for both lifestyle and investment returns.
Popular areas in and around Kuta Lombok include:

Are Guling: Surf-friendly coastline with scenic hillsides
Lancing: Quiet beach area ideal for eco-retreats and villas. Also known for paragliding, offering stunning aerial views of the coastline.
Tampah Hills: Sustainable luxury developments
Tanjung Aan: Beachfront properties
Mandalika: Fast-growing tourism zone, home to the MotoGP circuit
Grupuk: Popular surf village with a laid-back vibe
Awang: Natural harbor with potential for marine and resort development

When selecting land, always check:

Access roads
Availability of utilities (water, electricity)
Proper zoning (residential, commercial, tourism)
Proximity to beaches, restaurants, and major infrastructure

3. Conduct Thorough Due Diligence

Due diligence is non-negotiable. Before you sign anything:

Verify the land certificate is authentic and matches the physical land.
Check for existing mortgages, disputes, or overlapping claims.
Confirm the land zoning and permitted uses with local authorities.
Ensure property taxes (PBB) are paid and up to date.

An experienced lawyer can conduct these checks and provide peace of mind before you proceed.

4. Negotiate and Secure the Deal

Once you’re confident in the property:

Negotiate terms with the seller, including price, payment schedule, and inclusions.
Sign a Letter of Intent (LOI) to reserve the land.
Prepare a Sale and Purchase Agreement (PPJB) under the supervision of a certified notary (PPAT).
Pay a deposit (typically 10–20%) to secure the agreement.

All documents should be bilingual (Indonesian and English) and fully compliant with Indonesian law.

5. Finalize the Transfer

For Indonesians purchasing freehold land, the ownership transfer is registered with the BPN (National Land Agency).
For foreigners acquiring leasehold or Hak Pakai titles, the agreement must also be notarized and properly registered.

Upon completion:

Ensure all documents are signed and sealed by the notary.
Pay the relevant taxes, such as the Buyer’s Tax (BPHTB).
Collect your original certificates and receipts for safekeeping.

6. Plan Your Future Development

After securing the land, you can:

Apply for building permits (PBG/IMB)
Start construction on your villa, hotel, or commercial project
Hold the land as a medium-to-long-term investment

With the Mandalika Project driving growth and international attention, Kuta Lombok’s property market shows no signs of slowing down.

7. Work with Trusted Professionals

Navigating the process of buying land in Kuta Lombok can be complex, especially for foreigners unfamiliar with Indonesian property law.
Working with experienced lawyers, notaries, and real estate agents is essential to avoid legal pitfalls and protect your investment.

At Lombok Lawyers, we guide both Indonesian and international clients through every stage of land acquisition — from due diligence to final registration — with honesty, transparency, and care.