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ABOUTUS

SOUTH LOMBOK focuses on the quickly developing south coast of Lombok where we have

unlocked spectacular plots at competitive prices.

INVEST LIKE A LOCAL

In general, most land you’ll see for sale in Lombok has been purchased by a developer,

sometimes divided into smaller plots, and sold on for profit.

What gives our team it's unique competitive edge is our ability to facilitate deals directly with original owners.

These types of sale are typically much better value and make your investment profitable from the offset.

Our local team speaks Sasak (the local language of Lombok), Indonesian and of course English.

If you know what you're looking for our SOUTH LOMBOK team will talk to locals in your area of interest. 

We'll meet with the Kepala Desa (Head of the Village)

find out what’s available and deliver you with the best options to suit your needs.

We'll then negotiate the best price on your behalf and make sure the buying process runs smoothly.


We also sell on behalf of investors and have some incredible plots listed for sale.

If you can’t see what you're looking for on our site, just get in touch!

 

OURTEAM

Our people are here to make the process of investing in Indonesia easy and safe

Tralala Lombok Land Sales CEO
TRALALA

Director

Tralala has been working as a land agent for the last 9 years.

A successful entrepreneur & investor, he attained his Bachelor’s Degree in Business & Tourism in Perth, Australia. Before founding SOUTH LOMBOK, Tralala was employed as territory manager for a major booking platform, and opened his own villa complex, Blue Monkey Villas in 2004.

James Thorne, director of South Lombok Land Sales.jpg
JAMES

Director

Marketing expert and former CEO of a London based events agency, James first visited Lombok in 2010 & fell in love with the peaceful culture & uncrowded waves. After investing himself and experiencing the challenges, James saw an opportunity for an agency that could guide investors through the process and founded PT. SOUTH LOMBOK with Tralala. 

Fern Leaves
Ida Stenlund-Thorne, Sales Manager at South Lombok Land Sales
IDA

Sales  Manager

Our superstar specialist in international sales, Ida graduated with a Master's from Stockholm School of Economics before dedicating her time to a tech startup in the music industry. Ida is on hand to assist with sales and any kelapa muda which need attending to. 

Amir, sales assistant at South Lombok Land Sales
AMIR

Sales  Assistant

Amir is our top man on the ground.

Heading up landscaping projects, chauffeuring clients, occasionally quenching the team's thirst by climbing trees to collect fresh coconuts and also leading local negotiations;

There aren't many tasks which Unkle Amir can't handle.

Green Plants
Ibu Oni Monica, legal advisor, lawyer and notaris at South Lombok Land Sales
ONI

Legal Advisor

Our highly trusted Legal Advisor Oni studied law in Mataram, Lombok before completing her Master's at the prestigious University of Indonesia in Jakarta. Oni assists with all aspects of our organisation, from notarising contracts to establishing PT PMA foreign investment companies for our clients.

 

BUYING LAND

IN LOMBOK

Ok, so you’ve fallen in love with the Island and have a romantic idea that you’d like to invest in a slice of paradise to call your own. You start looking into the practicalities and try to find the info you need, quickly your dream starts to fade as the complexities of the legal landscape becomes apparent, and stories of people losing everything start to surface.

 

Yes, it’s true, the law states non-Indonesian citizens may not own land in Indonesia.

So how do people do it?

Well, there are two solutions: 1. Hold land through a nominated Indonesian citizen. Or, 2. Start an Indonesian Ltd company, the company can own the land and you can own a company.

1. The Nominee Setup

This is the way foreigners have been investing in Indonesia for decades. The setup is quite simple, you buy your land using a nominated Indonesian citizen's name, and in return, your nominee takes an agreed fee.

 

The agreement is secured by three contracts;

 

A Mortgage Agreement

This states that you have given the nominee a loan for the full cost of the land, and they are indebted to you for the full value, regardless of price increases.

 

Permanent Right Of Use

This contract agrees that you have full and unlimited rights to use or build on the land.

 

Irrevocable power of attorney (POA)

This gives you full legal control over the land, any legal decision you make must be executed by the nominee.

 

The standard fee for using a nominee is 2.5% of the land price at the point of purchase, and a further 2.5% of the land price when you sell.

Although a large number of businesses and villas are held using a nominee, it is a dated and risky solution, and it is important to understand the nominee setup is not fully recognized by Indonesian law. If there were a dispute and the case went to court, it is rare for the foreign investor to win. The usual outcome is the land being taken into state ownership. Therefore the nominee set up is not recommended.

 

2. Establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing)

A PT PMA is a foreign-owned limited liability company registered in Indonesia.  All Indonesian incorporated companies are subject to the Indonesian Company Law (Law No 40 of 2007 regarding Limited Liability Companies) and are also governed by the Investment Law. Importantly, the Investment Law protects investors by stating that the Indonesian Government is not allowed to take away the ownership rights of any investor, including foreign investors, without paying such an investor a market-based compensation. 

 

The regulations around operation are quite strict but have become more relaxed in recent years to encourage growth in foreign investment. These regulations are industry-specific and are predominantly aimed at protecting local businesses by preventing foreign investors from setting up a business in direct competition.

 

For instance, in the accommodation and hotel sector in which most of our clients wish to operate, there are criteria which prevent a foreign investor competing at the low budget end of the market with homestays or bungalows. To encourage high-end businesses which do not push their own people out of the market, the law requires an investment of $750,000 USD which is beyond the budget of most Indonesian citizens. Other regulations include a minimum 3* rating.

 

Some key points:

  • The legal fees for setting up a PT PMA range from $2,000 to $10,000 USD, or more depending on the scale of your business.

  • For Villa rental, the minimum investment capital is $750k. You don't need to have this money, but you will need to sign an agreement stating you intend to eventually have invested at least this amount.

  • Working capital is $250,000. You will have sign an agreement that you intend to deposit this amount into an Indonesian account registered to your business.

  • A PMA can be 100% foreign-owned (depending on your area of operation) and you have full control of your investment.

  • Multi-entry 24-month renewable visas for investors.

  • You must begin to develop your land fairly quickly. If your land is dormant for more than 2 years the government may issue letters asking that you should either develop or forfeit the land. The term "develop" is open to interpretation, and you may get away with building a wall or planting some trees. Don't forget, the government want you to have an operational company with a taxable income! They don't want you sitting on your land as an investment for decades.

  • You must submit monthly tax reports.

  • The land title can be held for a maximum of 80 years, after this period you can set up a new PT PMA and start over by selling to yourself, but you will have to pay buyer and seller tax on the value of your property.

This is not legal advice, seek legal representation.

 

PRACTICALITIES

&CONSIDERATIONS

When buying land in Indonesia the are many things to think about. These should be some of your top considerations:

Access

Be aware when buying land if your plot isn’t next to a main road. If you have to cross someone else's land to enter and exit, that person will probably expect compensation for diggers and heavy machinery churning up their property when it comes time to build and they could even hold you to ransom. Everybody needs a driveway!

 

Electricity

Electricity in Lombok is state-owned and there is a small fee of around Rp3M for hook-up and installation of a meter. But beware, if you’re looking at land in a very remote location, it could be a long way to carry electricity and you’ll be paying per meter for cable, pylons and labour. Even once connected you might want to consider a back-up generator.

 

Water

Water supply is rare in Indonesia, especially in rural locations including Kuta. Standard practice is to dig a borehole at the cost of around Rp700k per meter of depth inclusive of piping, or to share a neighbour's well. If you’re close to the ocean, you won’t have to go very deep to get water. You can’t drink it and all your bathroom taps and fittings will corrode very quickly without a filter.

 

Telecommunications

You might want to check the local phone connections. In some cases, investors have paid for a mast to be erected close by to provide internet. This costs around Rp30M. At other times, cable runs from existing connections can be more economical at around Rp3k per meter.

 

Local Integration

When the time comes to build, or even do some gardening, it’s common practice to employ locally wherever you can. Don’t forget to embrace the local life and try to integrate into the community.

 

Architecture

Be aware that not all modern practices are achievable in Lombok. It’s highly recommended that if you don’t use a local architect, you at least consult with one to make sure your vision is realisable using local materials and skills.

 

ESSENTIALREADING

 

OURSTORY

I first visited Bali and Lombok in 2010 and had instantly fallen in love with Indonesia. It was the warm, perfectly peeling uncrowded waves, the friendly culture, cheap healthy food and sense of adventure that drew me in. I’d never experienced anywhere like it before, after 8 weeks I was smitten and vowed to return and spend as much of my life there as visas and money would allow.

Gerupuk 2010

Gerupuk February 2010

Grupuk, Lombok.jpg

Gerupuk August 2017

Fast forward to 2016 and I’d started to pick up some freelance work in Asia. Although I’d not been back in almost a decade, I’d never forgotten about the magic of Indo and was eager to get back for a visit.

 

While browsing Facebook, I’d read an article about my friend Heidi who was living in Lombok working as a chef, I forget the details but I remember being amazed she was living there and making it work. After reaching out she invited me to stay at a villa she was sharing with a yoga instructor and a restaurant manager. Heidi introduced me to friends from all walks of life, who were running various businesses and projects in Kuta. It was that trip which introduced me to the concept of expat life. I ended up staying at the villa and using it as a base from which to travel to the various jobs I had lined up in the region.

 

Soon after this Ida, my now wife, flew out to Indonesia for the first time on a three-week vacation. Excited to show her the beauty of Bali and Lombok, I wanted to give her the best time possible and I’d hoped she would fall in love with the Islands as I had done. Well, it was a great success and one evening, while watching the sun setting over the Indian ocean from a clifftop in Ekas called Heavens Gate, I asked if she could see herself living in Indo? She said she could.

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Ekas October 2017

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Belongas September 2018

That was the point at which our journey of trying to become business owners in Indonesia began. The plan was loose but we knew the first step was finding a plot of land on which to build. We spoke to everyone we could, expats, locals, lawyers, estate agents, to get as much information on what we were trying to achieve as we could. We looked at plots in various developments and we spoke to locals who roughly threw stones to mark out plots they could sell us. This continued long after Ida had returned to Sweden, and each night we would go through notes and I would send videos of the plots I’d found and the conversations I’d had.

 

I had a tip-off about a Frenchman who owned a business in Are Guling and who potentially had land for sale. So as with every day, I fired up the scooter and headed off to see what I could find. I asked around the village and ended up driving up to Blue Monkey Villas where, with a huge grin, the manager shouted down from the restaurant to ask if he could help me. When I told him what I was doing, he shouted down, “No French here” but invited me to come up.

 

He was having a meeting with a landowner and had a land certificated on the table, once he’d wrapped up his meeting we began to discuss why I was there and explained my plans.

 

I hadn’t found who I was looking for, but I’d definitely found the right person!

 

We still laugh about that today. I’d met Tralala, the owner of Blue Monkey Villas, my now business partner and close friend.

I loved this guy, he laughed a lot, and as well as being very intelligent, he also knew a lot about buying and selling land. He had spent four years studying Tourism Management at Perth University, sponsored by his adopted Australian family.

We looked at a few locations in the area, but when I stood on our half-hectare in Are Guling, I just felt it. I knew it was the place.

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Slovenia July 2019

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Pangang January 2019

The process of purchasing land felt complex and at times scary. We encountered a local man who claimed ownership of the land, he claimed his three sons had sold the land while he was ill. And when all the activity started with GPS marking and governments officials walking around, he came up to express his situation. The advice from our legal counsel was he didn’t have a legal leg to stand on, and he would be laughed out of court. But, they said, this is not a legal problem, this a social problem. And their advice was to pay him something.

 

This was the responsibility of the seller, not on us as the buyers and they agreed to let Tralala negotiate with the old man on their behalf. I think the price went from 10,000 AUD to just a few hundred, everyone was happy with that, and once paid he signed a contract that he was satisfied and relinquished any claim over the land.

It was about two months from that cliff top in Ekas to owning land in Lombok, we used Tralala as our nominee, and a good friendship was born.

 

Since then Tralala and I have invested together in other locations across South Lombok, we’ve started a business with Heidi, and we have founded PT. SOUTH LOMBOK GROUP. 

 

Having experienced the buying process many times ourselves, we understand first-hand how challenging it can be. Information is difficult to find and the process is sometimes intimidating. We believe it should be fun and exciting, so we aim to make it as easy and enjoyable as possible.

James

 

CONTACTUS

 

James and Ida are currently in Sweden on maternity.

If you wish to view a plot or discuss buying land in Lombok,

you can arrange to meet with Amrin at his offices in Are Guling.

 

To arrange a meeting please get in touch via WhatsApp on the number below:

+62 853 3775 6416