Can Foreigners Own Land in Indonesia?

Under Indonesian law, foreigners cannot directly own freehold land (Hak Milik).

BUT…
Foreigners can legally control and use land through several other ownership structures that are fully recognized and safe, including government-supported options available in Mandalika.

Let’s break them down 👇

1. Hak Pakai (Right to Use) — The Easiest Legal Option

Hak Pakai is the most common and safest land title foreigners can legally hold under their own name.

✔ What You Get:

• Legal right to use residential or commercial property
  
• Initial period of 30 years
  
• Renewable for 20 years + another 30 years
  
• A total of up to 80 years
  
  

✔ Advantages:

• You receive a land certificate under your legal name
  
• Lower risks compared to nominee structures
  
• Allowed for villa ownership
  
• Supported in Mandalika SEZ zones
  
  

➡️ Ideal for foreigners buying villas, apartments, or residential land.

2. Hak Guna Bangunan (Right to Build) — Best for Developers

Foreigners can also obtain land rights through a PT PMA (foreign-owned company).

✔ What Is Hak Guna Bangunan (HGB)?

A land title allowing a foreign-owned company to build, develop, or operate on the land.

✔ Validity:

• 30 years initially
  
• Extendable for 20 years + another 30 years
  
  

✔ Who should use it:

• Developers building villas, resorts, hotels, commercial buildings
  
• Investors planning long-term rental businesses
  
• Anyone wanting to build property on legally controlled land
  
  

➡️ PT PMA offers the most flexible and secure structure for commercial projects.

3. PT PMA (Foreign-Owned Company) — Full Control & Flexibility

A PT PMA allows 100% foreign ownership and is fully legal in Indonesia.

✔ Benefits:

• Your company can hold HGB or Hak Pakai land titles
  
• You can conduct business operations (villa rentals, hotels, cafés, resorts)
  
• Can lease, develop, and sell property legally
  
• Ideal for long-term investment
  
  

✔ Perfect for:

• Property developers
  
• Large investors
  
• Rental villa businesses
  
• Eco-resort projects
  
• Foreigners wanting maximum control
  
  

➡️ PT PMA is the most secure and professional method for foreign investors today.

4. Long-Term Leasehold (25–80 Years) — Simple & Popular

Leasing is the most commonly used structure by foreigners looking to build or use property without forming a company.

✔ Typical lease durations:

• 25–30 years (standard)
  
• Many offer extensions to 50 or 80 years
  
  

✔ Suitable for:

• Private villas
  
• Surf stays
  
• Guesthouses
  
• Commercial shops
  
• Boutique hotels
  
  

✔ Benefits:

• No company formation needed
  
• Lower upfront cost
  
• Fast and easy contracts
  
  

➡️ Leasehold is easy, fast, and widely used for villas in Mandalika, Gerupuk, and Kuta Lombok.

5. The Nominee Structure — HIGH RISK (Not Recommended)

Some foreigners use an Indonesian nominee to hold Hak Milik (freehold) on their behalf.

But the risks are high:

• Not legally protected
  
• Agreements are not enforceable
  
• Full ownership stays with the nominee
  
• Many investors have lost land this way
  
  

➡️ NEVER rely on a nominee to hold land for you — safer legal alternatives exist.

6. Special Economic Zone (SEZ) Benefits in Mandalika

Mandalika is a Special Economic Zone, which offers additional advantages for foreigners:

✔ Easier PT PMA setup

✔ Tax incentives

✔ Investment-friendly regulations

✔ Streamlined licensing

✔ Priority infrastructure support

Foreign investors in Mandalika enjoy a smoother, more secure investment environment compared to other regions.

7. Step-by-Step Guide to Buying Land in Lombok (2025)

Step 1 — Choose your ownership structure

• Hak Pakai → residential villas
  
• PT PMA + HGB → commercial or rental businesses
  
• Leasehold → simple villas or small resorts
  
  

Step 2 — Conduct due diligence

• Check land zoning (residential/commercial/tourism)
  
• Verify certificates (SHM, SHGB, SHP)
  
• Ensure no disputes or overlapping claims
  
  

Step 3 — Hire a licensed notary (PPAT)

They will:

• Verify documents
  
• Validate ownership
  
• Draft legal agreements
  
• Register titles with BPN
  
  

Step 4 — Sign official contracts

Contracts include:

• Purchase/lease agreement
  
• HGB/Hak Pakai deed
  
• Land boundary map
  
• Payment schedule
  
  

Step 5 — Register the ownership

The notary submits your documents to the National Land Office (BPN).

Step 6 — Begin construction or development

If you’re building:

• Apply for your building permit (PBG)
  
• Hire a certified architect
  
• Follow zoning rules
  
  

Conclusion: Foreigners Can Legally and Safely Invest in Lombok

Buying land in Lombok as a foreigner is 100% possible, as long as you follow legal ownership structures such as:

• Hak Pakai
  
  
• Hak Guna Bangunan via PT PMA
  
  
• Leasehold agreements
  
  

With Mandalika’s rapid development, now is an excellent time to secure land while prices remain affordable and regulations are investor-friendly.