General information, not legal advice. This guide sets out the general rules as I understand them. It has not yet been reviewed by an Indonesian notary, and the rules change. Before you sign or pay anything, confirm every point with your own independent notary (PPAT) or lawyer.
Why the title matters
In Indonesia, the certificate decides who owns the land, what can be built on it, and for how long. A beautiful villa on land with a weak or disputed title can be worth very little. Most problems foreign buyers run into in Lombok start here, not with the building.
Land is registered with the national land agency, BPN (Badan Pertanahan Nasional), which has an office in each regency. A notary who is also a land deed official (PPAT) can check a certificate at BPN for you.
The titles at a glance
| Title | What it is | Who can hold it | Term |
|---|---|---|---|
| SHM (Hak Milik) | Freehold, the strongest title | Indonesian citizens only | No end date |
| HGB (Hak Guna Bangunan) | The right to build on and use land | Indonesians and Indonesian companies, including a foreign-owned PT PMA | Commonly 30 + 20 + 30 years |
| Hak Pakai | Right of use | Indonesians, and foreigners with a residence permit | Commonly 30 + 20 + 30 years |
| Leasehold (Hak Sewa) | A lease contract over someone else's land, not a certificate of its own | Anyone, including foreigners living abroad | As agreed, often 25–30 years plus extension |
| Girik, petok D | Old tax and village records of a claim, not a registered title | Not suitable for a foreign buyer | None |
Terms follow Government Regulation 18 of 2021 as commonly summarised. How extensions and renewals work in practice depends on the land office, so have your notary confirm the exact terms for any title.
SHM: freehold
Hak Milik is full ownership, with no end date, and only Indonesian citizens can hold it. Most of the land under Lombok's villas is SHM. When you take a lease, you are leasing from an SHM owner. So even as a foreigner who can never hold SHM, it's the certificate you most need to check: whose name is on it, the exact boundaries, and whether it's clean.
Never use an Indonesian "nominee" to hold SHM for you. Indonesian law treats these arrangements as void. See can foreigners buy property in Lombok?
HGB: building rights
Hak Guna Bangunan lets the holder own buildings on the land and use it for a long, renewable term. Foreigners reach it through a PT PMA, an Indonesian company with foreign shareholders. It's how most developers and larger rental businesses hold land. Converting SHM to HGB is a formal process at BPN, with fees and taxes. When the term ends, renewal isn't automatic.
Hak Pakai: right of use
Hak Pakai is the one registered title an individual foreigner can hold in their own name. It generally requires an Indonesian residence permit, and there are minimum property values that vary by region. It suits people who live in Indonesia. Read visas for property owners for the permits involved.
Leasehold
Most overseas buyers lease. A lease isn't a title. It's a contract with the SHM owner, signed before a notary, giving you use of the land and villa for a fixed term. Its strength depends on the wording, and on the certificate underneath it being clean. Read leasehold in Lombok, explained for the clauses that matter.
Girik, petok D and unregistered land
In parts of rural Lombok, some land is still held through old village or tax records, such as girik or petok D, rather than a BPN certificate. These are evidence of a claim, not a registered title. Indonesia has been pushing to register or convert them, but until a certificate is issued, the boundaries, the owners and even the claim itself can be disputed.
If a plot is offered on girik or petok D, the safest course is to wait until the seller has a registered SHM certificate before you sign anything or pay a deposit.
What to check on any certificate
- Your notary checks the original certificate at BPN, not just a photocopy
- The name on the certificate matches the seller's or landowner's ID
- Every owner signs: inherited family land often has several heirs, and all of them may need to agree
- A spouse consents where the land is marital property
- No mortgage (Hak Tanggungan), seizure or court dispute is registered against it
- The surveyed boundaries match the land you were shown on site
- Land and building tax (PBB) receipts are up to date
- Zoning in the regional spatial plan allows what you plan to build or run
- Legal access to a public road is shown or granted in writing
Disputes and inheritance
Ownership and inheritance disputes are a known risk across South Lombok, especially where land has risen sharply in value. Ask the village head (kepala desa) and neighbours whether anyone else claims the land. Your notary can check court and BPN records. A day spent checking costs far less than a dispute after you've built.
The land at Tampah Hills
The plot at Tampah Hills is surveyed land in a tourism zone. Before any buyer pays, the final survey, road access and tenure structure are being confirmed with the developer, and an independent notary should check the certificate.