New to Lombok Real Estate? Here’s what you need to know

Let’s start with one of the most important terms: PT PMA, which stands for Perseroan Terbatas Penanaman Modal Asing. This refers to a foreign-owned company registered in Indonesia. If you are a foreigner who wants to buy land and develop it legally, this is the most secure and regulated route.

Once your PT PMA is established, your company can hold land under HGB (Hak Guna Bangunan), which means Right to Build. This allows you to legally build and operate on the land for an initial period of 30 years. The title can then be extended for another 30 years and renewed for an additional 20 years. This gives you up to 80 years of legal control.

Maju Properties works closely with a trusted notary who manages the entire PT PMA creation process. This includes company name registration, legal drafting, business licensing, and tax documentation. We oversee the process to keep everything on track, while the notary handles all legal paperwork. You can begin your property search while your PT PMA is still being processed.

This option is ideal for investors and entrepreneurs who plan to build rental villas, resorts, or commercial properties in Lombok.

Once your PT PMA is established, you can legally purchase and register land under the title HGB, which stands for Hak Guna Bangunan, or “Right to Build.”

This land title grants your company the legal right to build and operate on the land, whether for residential or commercial purposes. It is issued and registered at the National Land Office (BPN), making it one of the most secure and regulated land titles available to foreigners through corporate ownership.

Key details:

• Initial term: 30 years
• Extension: 30 years
• Renewal: 20 years
• Total legal control: Up to 80 years
• Ownership holder: Your PT PMA, not you as an individual
• Use cases: Ideal for villa developments, resorts, rentals, or long-term commercial use
• Transferability: Can be sold or transferred under the name of the PT PMA

HGB offers strong legal protection, especially compared to informal ownership arrangements. It is also easier to resell the property in the future because it is tied to a registered company, not a personal lease or agreement.

Maju Properties helps guide you through the entire HGB process by working closely with our preferred notary. We coordinate land verification, title review, and document preparation to ensure everything is compliant, transparent, and stress-free.

One of the most popular and beginner-friendly ways to access property in Lombok is through a Leasehold Agreement, also known as Hak Sewa. This option does not require a company setup and is often used by foreign individuals who want a second home, a vacation rental, or land for future use.

Lease terms are typically 25 to 30 years, with the option to extend for another 20 to 30 years depending on the agreement with the landowner. A lease gives you the legal right to use and build on the land. In many cases, you may also be allowed to rent it out, depending on the lease terms and zoning laws.

To protect your rights, the lease agreement should be properly drafted, notarized, and ideally coordinated with the Land Office (BPN). When handled correctly, this is a legal and secure option.

Maju Properties supports you throughout this process. We help you find verified land, conduct due diligence, negotiate pricing, and coordinate with notaries to complete the transaction safely.

You might hear suggestions about buying land in the name of an Indonesian partner, friend, or associate. This is called a nominee agreement. The land certificate is issued in someone else’s name, while you hold a private agreement stating the land is actually “yours.”

This approach is risky and not legally recognized. If the nominee changes their mind, passes away, gets married, or faces legal issues, you have no legal protection. Indonesian law only recognizes the name listed on the land certificate, not any private agreement.

These arrangements were more common in the past but are now strongly discouraged. Legal alternatives like Leasehold or PT PMA with HGB provide safer and fully recognized solutions.

If you are new to the Lombok property market, choosing the right ownership method depends on your long-term goals, level of involvement, and whether you plan to run a business or simply hold land for personal use. Below is a quick guide to help you make the right decision.

Consider the following:

• If you want to build and operate a rental villa, resort, or any other business on the land, the most secure option is to set up a PT PMA and acquire the land under HGB (Hak Guna Bangunan).
• If you want to secure land or build a second home without creating a company, you can sign a long-term Lease Agreement.
• If someone suggests putting land under a local person’s name for you, known as a nominee structure, it is best to avoid this. It is not legal or protected under Indonesian law.

This simplified approach still ranks well, maintains user readability, and aligns with your guide’s language.

Foreigners can absolutely secure and control land in Lombok if they follow the correct legal process.

Indonesia’s property system may differ from what you are used to, but it is accessible with the right guidance.

This is where Maju Properties can help. We assist with:

• Verified property listings
• Legal due diligence
• Trusted notary introductions
• PT PMA setup support through our legal partners
• Help with zoning, building permits, and other local requirements

Whether you’re buying your first property or planning a long-term investment, we are here to make the process smooth, secure, and aligned with your goals.