3. Legal Due Diligence & Title Checks

Before committing to a property in Lombok, especially raw land, it’s wise to pay for legal due diligence:

📌 What it covers:

• Title verification
• Boundary validation
• Zoning compliance
• Encumbrance and dispute checks

💰 Estimated cost: USD 800 – 2,000+, depending on complexity.

Skipping this step is a common mistake that can lead to costly problems later.

4. Land Survey & Measurement Fees

If land boundaries are unclear or outdated, a professional survey is often required:

📏 Cost range: USD 300 – 1,000+ (depending on plot size and location).

This step protects buyers from boundary disputes and ensures accurate land size.

5. Ownership Structure Setup Costs (For Foreign Buyers)

Foreign nationals cannot directly hold Hak Milik (freehold) titles in Indonesia. Instead, you must use approved structures like:

• Hak Pakai (Right to Use)
• HGB (Hak Guna Bangunan) via a company (PT PMA)
• Long-term Leasehold agreements

⚖️ Each option carries setup costs for legal documentation, company formation (if used), and title registration, typically ranging from USD 1,800 – 3,000+ depending on structure and legal support needed.

6. VAT / PPN – For New Villas from Developers

If you’re buying a new villa from a VAT-registered developer, an 11 % PPN (value-added tax) may apply to the purchase price.

📌 Important: VAT usually applies only when buying newly constructed properties directly from a developer — not on resale homes.

7. Building Permits & Construction Fees (If You Build)

If you plan to construct a house or villa after purchase, additional permit costs apply (e.g., PBG, architectural drawings, environmental approvals).

💰 Typical fee: ~2 %–5 % of estimated construction cost.

This is often overlooked in initial budgeting.

8. Bank & Currency Transfer Costs

International buyers should also consider:

💱 – Bank transfer fees
💱 – Exchange rate margins
💱 – Compliance and wire transfer charges

These may seem small, but on high-value purchases they add up.

Summary of Typical Extra Fees on Lombok Property

Common Mistakes Buyers Make When Purchasing Property in Lombok

• Budgeting only for the asking price and ignoring extra costs like BPHTB, notary fees, VAT, and legal fees
• Skipping proper legal due diligence on land titles and ownership history
• Not verifying zoning regulations and land-use permissions before buying
• Choosing the wrong ownership structure, especially for foreign buyers
• Relying on informal agreements or poorly drafted leasehold contracts
• Assuming all land is buildable without checking permits and restrictions
• Underestimating building permit (PBG) and construction-related costs
• Failing to confirm access roads and infrastructure rights
• Using nominee arrangements without understanding the legal risks
• Not planning an exit strategy for resale or long-term ownership

Perspective from Razzaque Paradise Properties

At Razzaque Paradise Properties, we operate not only as active developers, but also as property consultants in Lombok. This dual perspective allows us to evaluate property deals from both an investment and execution standpoint.

What sets our approach apart:

✅ We analyze real development feasibility, not just market hype
✅ We focus on legal clarity, resale value, and long-term security
✅ We guide buyers through true all-in costs, not just headline prices
✅ We prioritize transparent structures that protect the buyer

From land acquisition to villa development and resale, we’ve seen firsthand how early planning saves clients time, money, and legal risk.

Final Thoughts: Budget Wisely for Your Lombok Property Investment

Buying property in Lombok can be an excellent investment in one of Indonesia’s fastest-growing real estate markets — but the purchase price is just the beginning.

To avoid surprises and ensure a smooth, legally compliant transaction:

✅ Ask whether prices include taxes like BPHTB and PPN
✅ Clarify who pays each fee before signing
✅ Consult a licensed notary (PPAT) and legal advisor
✅ Budget for due diligence and survey costs

Proper planning leads to better decisions — and a more secure property purchase in beautiful Lombok.