Land Ownership in Indonesia
Indonesia has a reputation for complexity around foreign ownership. That reputation is not entirely undeserved — but it is often overstated. The rules are clear, the legal structures are well-established, and thousands of foreign investors have completed purchases here safely. What you need is the right structure, the right notary, and someone who has done it before. That is exactly what we provide.
Understanding Land Ownership Titles
Not all land in Indonesia is equal. The title type determines what you own, for how long, and how securely. These are the two titles you will encounter with Mason Living:
SHM — Freehold Title The strongest land title in Indonesia. Permanent, no expiry date, fully transferable. As a foreign individual you cannot hold SHM directly — but you can acquire it through a PT PMA, a foreign-owned Indonesian company. This gives you full legal control of the land through your company structure. For larger investments or development projects, this is typically the preferred route.
HGB — Right to Build Hak Guna Bangunan grants the right to build on and use land for up to 80 years, renewable. Unlike SHM, HGB can be held directly by a foreign individual — no company required. It is a legally robust title widely used by foreign buyers across Indonesia. For most of our clients purchasing residential or investment plots, HGB offers a clean, accessible path to ownership.
Every listing on our portfolio clearly states the title type. No guesswork, no surprises.
The Buying Process
— Step by Step
We keep every transaction structured, transparent, and protected from first contact to final certificate.
Step 1 — Select Your Plot Browse our portfolio and identify a property that fits your goals. We are available for video calls, site visits, and detailed walkthroughs — in person or remotely.
Step 2 — Reserve with a Deposit A deposit confirms your interest and takes the plot off the market while due diligence begins. This is held securely and is fully refundable if due diligence fails.
Step 3 — Notary Escrow Your remaining funds and the seller's land certificate are placed into a notary escrow account simultaneously. Neither party can access the funds until the process is complete. This is the core protection mechanism of every deal we do.
Step 4 — Due Diligence Our notary conducts a full legal review: title verification, ownership history, zoning compliance, encumbrance checks, and regulatory status. This typically takes one to two weeks.
Step 5 — Transfer or Refund If due diligence confirms everything is clean: funds are released to the seller and the title transfer process begins. If any issue is found: your money comes back in full. No risk, no loss.
Step 6 — Title Certificate in Your Name The land registry (BPN) processes the transfer and issues the certificate. This takes between one and three months depending on the land office. We track every step and keep you updated throughout.
Costs & Taxes —
What to Budget
Beyond the agreed land price, budget for the following. These are standard across Indonesia and apply to every transaction:
BPHTB — Land Acquisition Tax 5% of the transaction value. Paid by the buyer at the time of transfer.
PPh — Seller's Income Tax 2.5% of the transaction value. Paid by the seller, though occasionally negotiated into the deal structure. We will always be transparent about how this is handled in each transaction.
Notary Fees Typically 0.5% to 1% of the transaction value. Covers all legal documentation, escrow management, and the title transfer process.
PT PMA Company Setup (if applicable) If you choose to purchase via a foreign-owned company structure, company formation costs apply separately. We work with trusted legal partners who offer straightforward, fixed-fee PT PMA setup. We provide a full cost estimate before you commit to anything.
Do I need to be in Lombok?
No. Many of our buyers complete the entire process remotely. We handle site visits, photography, and video walkthroughs on your behalf. Document signing can be arranged via notarised power of attorney. Funds transfer directly to the notary escrow account from abroad. We recommend visiting at least once — but it is not a requirement to get started.
The next step
Book a free 30-minute call with our team. We will walk you through the current listings, answer your questions, and give you an honest picture of what is available and what it costs — with no pressure and no obligation.