Dreaming of owning a piece of paradise in Indonesia? Whether you're relocating, investing, or seeking a holiday home in tropical Kuta Lombok, buying property as a foreigner is absolutely possible. But you need to understand and select the right ownership structure for you. 

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At Atrium Lombok, our boutique apartment development offers foreign buyers strata-titled apartments.  This legal framework allows for secure ownership of individual units. The next step is choosing the ownership structure that best suits your situation. In this article, we break down the three main ways foreigners can buy and hold property in Indonesia, and explore the pros and cons of each, specifically for those purchasing at Atrium Apartments.

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🛠 1. PT PMA Freehold Ownership

A PT PMA (Penanaman Modal Asing) is a foreign-owned company registered in Indonesia. Through a PT PMA, foreigners can hold freehold (Hak Milik atas Satuan Rumah Susun) strata title - essentially the highest form of ownership available in Indonesia for apartments.

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✅ Pros:

Freehold title under a legally recognized company structure

Greater long-term security and resale value

Flexibility to operate a business, rent out the unit, or develop further

Strong capital appreciation potential in tourist hubs like Kuta, Lombok

Lowest sales tax, when you wish to sell your property

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⚠️ Cons:

Higher setup costs (legal, notary, and company registration fees)

Annual reporting requirements to BKPM (Indonesia’s investment board)

Must maintain a legitimate business purpose (e.g. villa rental or property investment)

Best for: Serious investors or digital nomads planning to generate income through rentals or hold the property long-term.

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📄 2. PT PMA Leasehold Ownership

Alternatively, a PT PMA can also hold leasehold rights (Hak Sewa or Hak Pakai) over strata-titled property. At Atrium, our leasehold period is 80 years (with approximately 77.5 years remaining as at the time of writing). 

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✅ Pros:

Lower upfront cost compared to buying freehold

Still offers a legal structure under your control

Allows you to rent out or use for business purposes

Easier to exit or transfer leasehold interests

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⚠️ Cons:

Not perpetual — needs to be renewed at the end of the lease

Can have lower resale appeal compared to freehold units

Still requires PT PMA compliance and maintenance

10% sales tax when you wish to “sell” your leasehold

Best for: Buyers who want legal control through a company but prefer lower capital investment.

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🌴 3. Foreign Leasehold (Without PT PMA)

Foreigners can legally lease property directly from an Indonesian entity or individual under Hak Sewa, without establishing a company. This is the simplest entry point into Indonesian property.

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✅ Pros:

Fastest and easiest way to secure property

No need to establish a company

Typically structured with 25–30 year terms, renewable

Can be assigned or sold with developer approval

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⚠️ Cons:

Not a form of ownership — you don’t own the asset, you lease it

May have restrictions on subletting or resale

Requires trusted legal structuring to ensure proper rights are documented

Not ideal for commercial purposes unless explicitly allowed

20% sales tax when you “sell” your leasehold. 

Best for: Holiday home buyers, retirees, or casual investors who want to enjoy Lombok without setting up a business entity.

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So Which Ownership Type is Best for Atrium Lombok?

All Atrium Apartments in Kuta Lombok are strata titled, meaning each unit is individually certified, an ideal match for all three ownership structures. For the most protection, and lowest taxes, we recommend establishing a PT PMA. The upfront cost may be a little higher, and yes you do have to do tax reporting, this is offset against any potential sales taxes you may have when you sell your property. 

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Why Foreigners Are Investing in Kuta Lombok

Kuta, Lombok is one of Indonesia’s rising stars. With a booming tourism scene, rapidly improving infrastructure, and high occupancy rates, the demand for modern, legal, and well-located properties like Atrium Lombok is growing fast. Whether you're looking for a rental income stream, a personal getaway, or a retirement base, Atrium offers:

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🌊 Central yet private location, just 2 minutes to Kuta’s best cafes and beaches

🏢 Legal strata-titled apartments for foreign buyers

💼 Ownership options that suit every type of investor

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Final Thoughts

Indonesia’s property laws can seem complex, but with the right legal structure and a reputable development like Atrium Lombok, buying real estate as a foreigner is not only possible, it’s a smart move.

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📩 Need help deciding which option is right for you? Reach out to our sales team for guidance and assistance with legal structuring, PT PMA setup, and securing your apartment in paradise.

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