Frequently Asked Questions

    Everything you need to know about buying, building, and investing in Lombok.

    Buying Property

    Yes, foreigners can invest in Indonesian property safely and legally. The main route is the PT PMA (foreign-owned company), which allows you to acquire land with Hak Guna Bangunan title and operate the property commercially. It's a well-established structure used by thousands of foreign investors. Setup costs vary depending on the size and zone of the property, but typically range between €1,500 and €3,000, with incorporation taking around 1 week.

    A PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. It's the standard legal vehicle for foreigners to hold land and property rights. If you plan to buy land or build, you'll almost certainly need one — and we manage the full incorporation process.

    The main taxes are BPHTB (land acquisition tax, typically 5% of the government-assessed value) and PPh (income tax on the seller, usually 2.5%). We calculate and disclose all taxes before you commit — no surprises after signing.

    Yes. Much of the process can be handled remotely with proper power of attorney documents. We'll tell you exactly when your presence is required and when it isn't.

    Yes, when you follow the correct procedure. The three main risks are: unverified property titles (mitigated by due diligence), illegal nominee structures (mitigated by setting up a PMA), and non-residential/touristic zoning (verify the Kabupaten RTRW). With a certified PPAT notary and a local advisor, your investment is regulated and protected under Indonesian law, just like for a local citizen.

    The South Lombok zones with the best current entry-price/yield ratio are: Kuta-Mandalika (high tourist traffic, mature infrastructure), Are Guling (some of the highest net yields on the island), Selong Belanak (lifestyle and families), Tanjung Aan (premium oceanview). Emerging zones with lower entry prices: Awang, Bumbang, Mawun. Each zone has a different vocation (residential, touristic, mixed) — the choice depends on your goal (cashflow vs capital gain).

    Our Process

    From initial consultation to having your land titled under your PT PMA, expect 3–6 months depending on the property and documentation. Construction timelines vary by project. Every step in our roadmap includes realistic timeframes.

    No problem — you don't have to buy from our portfolio. Bring any property and we'll handle due diligence, legal checks, negotiation support, and everything that follows.

    A typical notary handles the deed and stops there. We cover the entire journey — from pre-purchase consultation to post-construction — with proactive guidance on permits, timelines, and costs you'd otherwise discover too late.

    From first contact to notarial deed: typically 6-10 weeks to buy land, plus around one week for PMA setup (for purchase via company). Main steps: 1-3 weeks for shortlist and property visits, 1-2 weeks for due diligence (titles, zoning, restrictions), 2 weeks for the Sale & Purchase Agreement, 1-2 weeks for PPAT notary and transfer. Villa construction adds another 10-14 months.

    Costs & Fees

    No. We list every cost — taxes, notary fees, permits, company setup, utility connections — before you commit. If a cost isn't confirmed yet, we tell you and provide a realistic estimate.

    Our service covers consultation, property selection or verification, full due diligence, legal and tax coordination, PT PMA setup, permit applications, and ongoing support. Post-purchase and construction services are available as add-ons with transparent pricing.

    In Indonesia, it's common for foreigners to be quoted 2–3× the local rate. Our long-standing relationships with local suppliers and contractors mean prices are pre-negotiated at fair local rates — formalized with binding agreements.

    Prices vary significantly by zone and size. Current indicative ranges (per are = 100 m²): Bumbang Rp 30-40M/are, Mawun Rp 60-90M/are, Mandalika Rp 100-150M/are, Are Guling Rp 120-180M/are, Selong Belanak Rp 150-250M/are, Kuta Rp 300-400M/are. These prices exclude: notary (varies case by case), transfer taxes (5% on the property value, not the sale price, paid by the buyer), and due diligence (€400-800). Values are indicative and depend on zone, size, and specific property characteristics.

    For a villa (€200-300K): taxes (11% on net profit), insurance (~€500-1,000), routine maintenance (~€3,000-5,000), staff (housekeeping, maintenance: ~€3,000-6,000), utilities (~€1,500-3,000), management fees if outsourced (20-30% of gross revenue). For undeveloped land: only PBB + optional fencing/caretaker (~€500-1,000/year).

    Post-Purchase & Construction

    We source, vet, and negotiate with contractors, engineers, and material suppliers — all through formal agreements with binding clauses. We set everything up so the project runs smoothly. Final execution oversight remains with you as the owner.

    We handle PLN (electricity) grid connection applications, well drilling coordination, and road access construction. Each service comes with a vetted provider and a formal contract.

    Yes. We manage the PBG (building permit, formerly IMB) application process, including the masterplan submission to the local land office — a step many investors don't know about until it's too late.

    No, you don't need a specific visa just to buy. You can purchase with a standard tourist visa. However, if you want to live in Indonesia permanently or personally manage the property, the options are: KITAS Investor, KITAS Retirement (from age 55, with provable income), or Second Home Visa. For management and operations we offer full PMA + visa support.

    Selling

    Absolutely. We provide professional valuation, listing creation, marketing through our buyer network, and manage the full transaction — from negotiation to final deed transfer.

    Investment & Returns

    Lombok offers entry prices around 40-50% lower than Bali with higher net yields, thanks to the post-MotoGP tourism boom and new infrastructure (BIZAM airport, Mandalika highway). Bali has a more mature and liquid market but yield compression is already underway. Lombok is the choice for those seeking capital growth combined with cashflow; Bali for those who want immediate liquidity and a consolidated market.

    Realistically you start from €25,000-35,000 for a small land plot (8-10 are) in emerging zones like Bumbang or Awang. For a turnkey villa with operational yield, expect €200,000-300,000. Below €25,000 options are limited and fixed costs (PMA, due diligence, notary) disproportionately impact returns.

    The average net yield for a well-managed villa in South Lombok typically ranges between 12% and 20% per year, depending on zone (Kuta-Mandalika at the top, inland zones at the bottom), management quality, and seasonality. Average occupancy is around 70% with average nightly rates of $150-250. During events like MotoGP, rates rise significantly. A well-managed €255,000 villa typically generates €30,000-50,000 net per year.

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