I.Facts to Consider Before you Buy

A. Can owning real estate in Indonesia be risky?

Yes. While all investments have some degree of risk, it is prudent to remember that Indonesia is a young, undeveloped country that still suffers from growing pains. Since Indonesia obtained independence after World War II, the country's political history has since been turbulent, marked by corruption, separatism, and monetary crisis. As recently as 1998 radial changes in the government threatened the nation's stability. At the moment Indonesia is regarded as being stable. However, that is no guarantee of future stability.

Foreigners cannot hold freehold (or fee simple) title to a parcel of land. Indonesian law is very specific. Regardless of what anybody tells you, there is no possible way you can own land outright. I will be discussing the ways which foreigners currently use to invest in land in the Section entitled, 'Legal Issues'

The government is constantly pulled between factions that espouse "protect Indonesia for Indonesians only" and those that want to do everything possible to encourage foreign investment in the country. New land ownership regulations are passed frequently by the Parliament, often in direct conflict with older provisions. Supreme Court rulings frequently make further modifications, which add additional level of legal complexity.

Indonesia has very few consumer protection laws, especially in the process of buying and selling of real estate. Real estate agents are not licensed, and land transfer disclosure/ transparency regulations are non-existent. You can reduce your risk both by doing your homework in advance and following the recommendations presented in this Website.

Recognizing the risks, it must be said that risk is one of the reasons land on Lombok is so inexpensive and the potential financial benefits so large.

B. Lombok is a Different Culture

Many foreigners often fail to realize how different the culture of Lombok can be when compared to their home country. Unlike other parts of the world, Indonesia has never experienced waves of immigrants. Fifty years ago, islands such as Lombok were virtually isolated from the rest of the world.

It should come as no surprise to find that most the residents of Lombok are ingrained with their own "homegrown" set of values, morals and traditions - the origins of which are hard to determine.

Some of the positive aspects of this unique culture are an uncommon friendliness to strangers and a ready hospitality wherever you visit. The local Sasak people still retain their traditional culture, including clothing, an elaborate marriage ceremony, and highly unique music. On the negative side of the Sasak culture, corruption and petty thievery (including clever scams) are commonplace. This lack of ethical integrity demands that the foreign buyer exercise extreme caution when buying property.

C. Living on Lombok

Residing in Lombok, even on a part-time basis, will expose you to a number of circumstances not seen in first-world countries. For example, many people still live in pitifully poor conditions. As a consequence, malnutrition, tropical diseases and a failure to seek medical care results in a disproportionately large number of deaths among all age groups.

Power outages are common and Internet connections are slow. Workers are unreliable and everything happens at a snail's pace. This is all part of the culture of Lombok. Making sure you can adapt to these conditions is one of the first issues you must examine.

I.Important Facts to Consider

A.Is ownership risky?

B.Lombok: A Different Culture

C.Living on Lombok

II.Summary Steps to Buying Land

A. Get familiar with Lombok

B. Choosing a Partner("Nominee")

C. Find a parcel of Land

D. When You Find a Parcel

E. Negotiate the Price

F. Comprehensive Due Diligence.

G. Initiate Title Transfer.

H. Issuance Land Certificate

III. Visit All Lombok First

A. From Tourist to Resident

B. Explore the Hidden Lombok

C. Starting a Checklist

IV. Legal Issues

A. The Issue of Ownership

B. Foreigners Solve the Problem

C. The Nominee Method

D. Foreign Direct Investment(PMA)

E. One Final Option

V. Choose Partner and Team

A. Start Looking Early

B. Wide Variety of Skills

C. Other Trustworthy People

D. Check if Trustworthy

VI. Places that Sell Land

A. General Warnings

B. Real Estate Companies and Websites

C. The Local Tour Guide

E. The Local Gossip Mill

F. Miscellaneous Sources

VII. When You Find a a Parcel

A. Initiate Early Discussions

B. The history of the land

C. Get to know the Players

D. Slowly Get to the Price

VIII. Through an Engineer's Eyes

A. Clear access

B. Public facilities

C. Everything Belongs to you?

D. Check the Drainage

E. Check the Stability

F. Double Check Everything

IX. Settle Price and Terms

A. Necessary Preparations

B. Establish Proper Atmosphere

C. Conduct the Negotiations

D. The Issue of Parcel Size

E. Money is Not the Only Issue

F. Giving a Deposit?

X. The Written Agreement

A. How do I Pay Money?

XI. Due Diligence and Research

A. Risk versus Benefit

B. Due Diligence

C. Checking Public Records

D. Digging for the Unwritten Truth

XII.The Notaris Office

A. Settling the Final Terms

B. Notaris - Initiate Title Transfer

C. Sign the Nominee Agreement

XIII. Finally a Certificate