How to Buy Property in Lombok: Step-by-Step Process for Foreigners

Buying property in Lombok as a foreigner is entirely doable — but it is not the same process as buying in France or Germany. Here is what actually happens, step by step, from initial research to receiving your keys.

Step 1: Define your investment profile (Week 1)

Before looking at listings, be clear on: What is your budget (total, including legal fees)? Are you buying for rental income, personal use, or both? What is your time horizon? Do you want a built villa or raw land? Which legal structure fits your situation (leasehold vs PT PMA)?

These answers determine everything: which areas to focus on, which legal structure to use, and what due diligence steps are needed.

Step 2: Property search and shortlist (Weeks 2–4)

Work with a local partner who has verified listings and can physically inspect properties on your behalf. Photos lie. Roads that look accessible in Google Maps are sometimes unpaved tracks in the rainy season. A trusted local intermediary visits properties before you fly out — or at minimum before you sign anything.

Create a shortlist of 3–5 properties that fit your criteria. For each, request: land certificate copy, IMB (building permit) if built, proof of seller's title, and any existing lease documentation.

Step 3: Due diligence (Weeks 3–5)

This is the non-negotiable step that buyers sometimes try to rush. A local notaris (PPAT — Pejabat Pembuat Akta Tanah) checks:

• Title certificate authenticity at the National Land Agency (BPN)
• No existing liens or disputes on the land
• Zoning compliance (is the land classified for tourism/residential development?)
• Seller's legal right to sell or lease

This typically takes 1–2 weeks and costs €300–500 in notarial fees. It is not optional.

Step 4: Negotiate and sign a Memorandum of Understanding (Week 5–6)

Once due diligence is clean, you sign a preliminary agreement (MoU or PPJB) with a deposit — typically 10–20% of the total price. This secures the property while the main deed is prepared.

Have the MoU reviewed by your own lawyer before signing, particularly the penalty clauses if either party withdraws.

Step 5: Sign the notarial deed (Week 6–10)

The main transaction is executed before a PPAT notaris in a bilingual deed. For a leasehold, this is the Hak Sewa deed. For an HGB transaction through a PT PMA, this is the transfer or creation of the HGB right. The notaris witnesses both parties' signatures and registers the transaction.

You do not need to be physically present — a notarised Power of Attorney allows a trusted local representative to sign on your behalf.

Step 6: Registration and handover (Weeks 8–12)

The notaris submits the deed for registration at BPN. For leasehold agreements, this creates a registered annotation. For HGB, the updated certificate is issued. Simultaneously: keys are handed over, utility accounts are transferred, and any furnishing or management arrangements are finalised.

Total cost breakdown

• Property price: [your negotiated price]
• Notaris / legal fees: €1,000–2,500 depending on complexity
• BPHTB (land and building transfer tax): 5% of transaction value, paid by buyer
• PPh (seller's income tax): 2.5% of transaction value, typically paid by seller
• Travel costs for site visits: variable
• PT PMA setup (if applicable): ~€1,500

Total additional costs beyond the property price: approximately 7–10% of the purchase price.