The most common question we receive from international buyers who discover Selong Belanak for the first time is some version of this: 'This looks incredible, but can I actually buy here as a foreigner?'

The answer is yes. The legal framework for foreign property ownership in Indonesia is well-established, and buyers from Australia, Singapore, Hong Kong, the UK, Europe, and beyond are actively purchasing in Selong Belanak and South Lombok. But doing it correctly requires understanding the rules and working with the right advisors from the beginning.

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The Two Main Pathways for Foreign Buyers

Indonesia does not permit foreigners to hold freehold title (SHM) directly. However, there are two fully legal and widely used ownership structures that give you genuine, secure rights over property.

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Option 1: Leasehold (Hak Sewa)

A leasehold agreement gives you the right to use, occupy, and rent a property for a fixed term, typically 25 to 30 years, often with one or more options to extend, giving total terms of 50–80years. The underlying freehold remains with an Indonesian landowner or company, but your right to the property is protected by contract. A well-drafted leasehold agreement, notarised by a reputable Indonesian PPAT (Notary and Land Deed Official), gives you strong practical security over your investment. This is the most common structure for buyers who are primarily motivated by lifestyle use or rental income, and who do not need the additional complexity of a company structure.

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Option 2: PT PMA (Foreign-Owned Company)

A PT PMA is a foreign-owned limited liability company registered in Indonesia. Once established, a PT PMA can hold property under HGB (Hak Guna Bangunan) title, which confers stronger legal rights than a leasehold, and is the preferred structure for buyers who want to operate a commercial rental business, or who are making a larger or longer-term investment. Setting up a PT PMA involves some administrative cost and ongoing compliance requirements(annual reporting, tax obligations), but it is a well-understood process, and many international investors in Lombok operate successfully through this structure.

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Due Diligence: Do Not Skip This Step

Before signing anything, a proper due diligence process is essential. This means independently verifying the property's title at the BPN (National Land Agency), confirming zoning permissions, checking for any encumbrances or disputes, and reviewing the seller's documentation carefully. We strongly recommend engaging an independent Indonesian legal consultant, not just a notary, to conduct this process on your behalf. The notary's role is to officiate documents; the legal consultant's role is to protect your interests. Both are necessary. Selong Selo provides all documentation required to support the due diligence process on our properties. We have nothing to hide and everything to gain from buyers who go into transactions with complete confidence.

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The Purchase Process, Step by Step

• Identify your property and agree on price and terms with the seller.
• Engage an independent legal consultant to conduct due diligence on the title, zoning, and seller documentation.
• Select your ownership structure (leasehold or PT PMA) and instruct your legal team to draft the relevant agreements.
• Sign the agreement before a registered PPAT notary. Pay any agreed deposit at this stage.
• Complete payment per the agreed schedule. Final payment is typically due on settlement.
• Register the transaction with the BPN and obtain your certified title documentation.

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Tax Considerations

Property transactions in Indonesia are subject to several taxes, including Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB - the land and building acquisition duty) and income tax on the seller. Rental income is subject to Indonesian income tax, and GST (PPN) applies to certain types of transactions. Your legal and tax advisors can structure your investment in the most efficient way.

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How Selong Selo Supports Foreign Buyers

We have helped international buyers navigate the Selong Belanak market for years. We can introduce you to trusted legal, notarial, and tax professionals, provide you with complete documentation packages for our properties, and guide you through the process from first inquiry to completed title. Contact our team today and let us help you get started.