Lombok is rapidly emerging as one of Southeast Asia’s most attractive investment destinations, driven by its breathtaking landscapes, expanding tourism sector, and growing demand for real estate. With more investors turning their attention to this tropical paradise, one key question often arises: Can foreigners own land in Lombok?

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YES, THEY CAN! HERE'S HOW

Foreign investors can own property in Lombok by establishing a PT PMA company, which allows for 100% foreign ownership of land and buildings. PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a Foreign-Owned Company that enables international investors to conduct business in Indonesia.

A PT PMA not only grants ownership rights but also ensures compliance with Indonesian regulations, providing a secure legal framework for property acquisition and business operations. Through this structure, investors can acquire freehold land titles via a Sales and Purchase Agreement (Akta Jual Beli) and obtain a Right to Build (HGB - Hak Guna Bangunan), which is essential for securing building permits and developing properties.

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HOW TO SET UP A PT PMA IN LOMBOK?

Setting up a business abroad can be complex, involving numerous documents, legal requirements, and regulations. Fortunately, with Selaras Lombok by your side, the process becomes seamless — you can leave the finer details to us. We provide direct access to our experienced notary team and trusted legal professionals, ensuring a smooth and secure PT PMA setup.

1. Determine Your Business Activity – Ensure your business type is allowed for foreign investment.
2. Prepare Required Documents – This includes passport copies, NPWP (Tax Number), a business plan, shareholders agreement, and a company address.
3. Register a Company Name – The name must be unique and consist of at least three words, each with a minimum of three letters.
4. Notarize Deed of Establishment – Notarize your company’s Articles of Association and have them filed with the notary.
5. Apply for NIB (Business ID) – Obtain a Business Identification Number via the Online Single Submission (OSS) system.
6. Obtain Necessary Licenses – The type of license required will depend on your business activity, whether it be tourism, construction or another sector. For example, if you are planning to open a resort, you will need specific tourism license and permits.
7. Register for Taxes – Register for NPWP (Tax Number), VAT and other necessary taxes at the local tax office.
8. Open a Company Bank Account – This is required for financial transactions.
9. Comply with Local Regulations – Make sure your business adheres to local regulations and environmental laws in Lombok.‍
10. Maintain Compliance – Keep up with tax reporting, license renewals, and regulatory requirements.

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HOW MUCH IT COST & HOW LONG DOES IT TAKE?

• Estimated PT PMA setup cost: 33 million IDR / 2,000 € / 3,200 AUD
• Processing Time: 5–7 days

At Selaras Lombok, we are dedicated to guiding our clients through every step of the process. Our expert team offers comprehensive notary and legal services to ensure a smooth and secure PT PMA setup. Read more about our Notary & Legal Services.

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