Avoid Costly Mistakes: 10 Must-Know Steps for Property Due Diligence in Lombok

Introduction: Why Property Due Diligence in Lombok Matters

In recent years, Lombok has emerged as one of Indonesia’s hottest real estate destinations. With its pristine beaches, growing tourism infrastructure, and proximity to Bali, investors—both local and foreign—are increasingly drawn to the island's potential. Major projects like the Mandalika Special Economic Zone have only fueled interest, making now a tempting time to buy.

However, with opportunity comes risk. Many buyers make the mistake of rushing into deals without fully understanding the legal complexities behind land transactions. In Lombok, it’s not uncommon to encounter land sold without clear ownership, overlapping claims, or zoning restrictions that make development impossible.

This is why property due diligence in Lombok is not just recommended—it’s essential. Failing to verify land certificates, zoning, permits, and seller legitimacy can lead to costly legal battles or even total loss of investment. Whether you're buying a villa plot in Kuta Lombok or farmland in Selong Belanak, proper checks are your first layer of protection.

By prioritizing property due diligence in Lombok, investors can confidently navigate the legal landscape, avoid unpleasant surprises, and safeguard their long-term financial goals. In short, peace of mind starts with doing your homework.

Step 1 – Verify Land Ownership and Certification

The first and most critical step in property due diligence in Lombok is verifying the land's legal ownership and certification status. Many foreign investors assume that once a seller presents a certificate, the land is legitimate. Unfortunately, this is not always the case.

There are different types of land certificates in Indonesia. The most secure is the SHM (Sertifikat Hak Milik) or freehold title, which is typically reserved for Indonesian nationals. Foreign investors usually deal with HGB (Hak Guna Bangunan) or right-to-build titles, often issued under a PT PMA (foreign-owned company). Another type you may encounter in rural areas is Adat land—customary land that is often not registered with the National Land Agency (BPN) and poses high legal risks.

A key step in property due diligence in Lombok is visiting the local BPN office to cross-check the land certificate number, ownership history, and status of the land. The certificate should match the seller’s identity (validated with their KTP) and be free from disputes or collateral (such as being used as loan security).

Common fraud risks in Lombok include double sales (selling the same land to multiple buyers), unclear or disputed boundaries, and fake certificates. These can be prevented through rigorous property due diligence in Lombok, including requesting original documents, performing a land measurement (pemetaan), and interviewing neighboring landowners or the village head (kepala desa).

By thoroughly verifying ownership, investors lay the groundwork for secure transactions. Skipping this foundational step in property due diligence in Lombok is a gamble no smart investor should take.

Step 2 – Check Zoning Regulations (RTRW) and Spatial Plan

The second step in property due diligence in Lombok is understanding the zoning regulations set out in the RTRW (Rencana Tata Ruang Wilayah) or regional spatial plan. Zoning determines what type of structures can be built on a specific plot of land—whether for tourism, residential, commercial, agricultural, or green conservation use.

Failing to check zoning restrictions is one of the most common mistakes investors make during property due diligence in Lombok. Just because a plot looks suitable for a villa or resort doesn’t mean it’s legally approved for such development. Some areas, for example, are classified as green zones, meaning no permanent buildings can be constructed at all. Others might be tourism-designated zones, which allow for hospitality development—but only with proper permits and environmental clearance.

To accurately verify zoning, consult directly with the Dinas Tata Ruang (Office of Spatial Planning) or the local Bappeda office. These authorities can provide official zoning maps and confirm whether your intended use aligns with the region’s long-term development plan.

Zoning greatly impacts both the value of your land and the type of permit you'll be able to obtain. As such, integrating zoning checks into your property due diligence in Lombok ensures you don’t invest in land that you can’t legally use as planned. This step can protect you from future disputes, permit denials, or even forced demolitions.

By making zoning verification a priority, your property due diligence in Lombok becomes not just a legal necessity—but a strategic investment decision.

Step 3 – Confirm Land Use and Permits

An essential step in property due diligence in Lombok is confirming that the land can be legally used for your intended purpose and that all necessary permits can be obtained. This includes checking for an IMB (now replaced by PBG – Persetujuan Bangunan Gedung), an AMDAL (environmental impact assessment) if required, and an SLF (Sertifikat Laik Fungsi or building worthiness certificate) for completed structures.

Some regions in Lombok—especially around strategic development areas like Mandalika—have heightened scrutiny on land use and permits. Properties near tourist destinations, coastlines, or infrastructure zones may fall under national strategic project regulations, requiring detailed approvals and strict environmental reviews.

While many investors rely on local agents to handle these checks, it’s crucial to personally verify permit status through official channels such as the local DPMPTSP (Investment and One-Stop Services Office) or Public Works Department. Relying solely on verbal promises or non-transparent intermediaries can result in costly setbacks later on.

Another key aspect is verifying land function designation. Even if land has the right certificate, it must match its spatial function in government zoning and permit databases. For instance, agricultural-designated land cannot be developed for tourism without undergoing a lengthy reclassification process. Overlooking this step can lead to project halts or permit denials during construction.

Incorporating these checks into your property due diligence in Lombok ensures you're not just buying land, but securing a viable, lawful opportunity to develop. Whether you plan to build a villa, resort, or commercial property, early permit and use verification minimizes future legal headaches and supports long-term investment success.

Step 4 – Investigate Access, Utilities, and Infrastructure

When conducting property due diligence in Lombok, many buyers focus solely on ownership and permits, but overlook critical infrastructure issues that can impact the usability and future development of the land. One key factor is legal road access—having a visible road leading to the property does not automatically mean you have the legal right to use it. You must ensure that access is recorded in the land certificate or backed by a written easement agreement (hak lewat), especially if the road crosses someone else’s land.

Access to basic utilities such as electricity, clean water, and internet is equally important. In remote or semi-developed areas of Lombok, connections to PLN (state electricity company) or PDAM (local water authority) may be unavailable, requiring costly infrastructure or alternative solutions like generators or wells.

It’s also common for neighboring properties to share utility lines or roads—another reason why written agreements should be part of your property due diligence in Lombok. Ignoring these aspects can result in disputes, denied access, or expensive upgrades later. Comprehensive checks on infrastructure ensure your investment is practical, compliant, and future-ready.

Step 5 – Understand Local Customary Laws (Adat)

A critical but often overlooked part of property due diligence in Lombok involves understanding the role of local customary laws—commonly referred to as adat. While Indonesia operates under a national legal framework, local traditions in Lombok still carry significant weight, particularly in rural and undeveloped areas.

Adat laws govern how land is inherited, transferred, and used within traditional communities. These unwritten rules may not always align with national regulations, but they are respected by locals and enforced through social mechanisms. In some cases, land with a formal certificate may still be contested if the community believes the transfer ignored customary rights or protocols.

For this reason, it’s essential to consult with kepala desa (village head), tokoh masyarakat (community elders), or local Banjar before finalizing any transaction. Their approval—while not a legal requirement—can ensure smoother integration and long-term peace of mind.

Incorporating these consultations into your property due diligence in Lombok helps you avoid future disputes, community resistance, or reputational damage. Especially for land that has not changed hands frequently or is near sacred sites or ancestral areas, acknowledging adat norms adds a vital layer of social security to your investment. Ignoring them may lead to complications that no legal title can fully resolve.

Step 6 – Conduct a Physical Land Survey

A vital component of property due diligence in Lombok is conducting a professional physical land survey. Even when a land certificate is available, the actual conditions on the ground may differ significantly from what’s stated in official records. That’s why hiring a certified land surveyor is strongly recommended before finalizing any transaction.

A proper land survey includes verifying the exact size, elevation, and boundary points using GPS technology. This helps identify if there are encroachments by neighboring plots or natural obstacles that could affect future construction. In some cases, buyers discover that the usable land is smaller than recorded or partially located in a flood-prone zone.

This step is especially important if you plan to build on the land or resell it later. Clear boundary markers and up-to-date survey documentation will save time and reduce disputes during development. It also strengthens your legal position if conflicts arise over access or ownership.

Including a professional survey as part of your property due diligence in Lombok ensures that what you’re buying matches your expectations—not just on paper, but in reality. It’s a smart move that protects both your financial investment and long-term plans.

Step 7 – Verify Seller Legitimacy and Power of Attorney

A commonly overlooked but critical part of property due diligence in Lombok is verifying the legitimacy of the seller—especially when the transaction is being handled by a representative, agent, or proxy. In many cases, foreign buyers are presented with a "middleman" claiming to act on behalf of the rightful landowner or a company director, but without proper legal authority.

If someone claims to have the right to sell a property on behalf of another, they must provide a valid Surat Kuasa (Power of Attorney). This document should be notarized and, if issued some time ago, confirmed to be still valid. It must clearly outline the scope of authority, including whether the proxy is authorized to negotiate and transfer ownership rights.

Red flags to watch out for include vague explanations of ownership, documents that cannot be verified at the notary’s office, or pressure to close the deal quickly due to "urgent family needs" or sudden price drops. These tactics often signal questionable ownership or fraud.

As part of property due diligence in Lombok, always cross-check the seller’s identity with the name on the land certificate and confirm corporate authorizations if the land is owned by a legal entity. This protects you from future disputes or voided transactions. Confirming the right to sell isn’t just a formality—it’s your legal shield.

Conclusion: Peace of Mind Starts with Proper Checks

Investing in land or property in Lombok can be highly rewarding—but only if it’s done right. As interest in the region grows, so do the risks of rushed or misinformed purchases. That’s why property due diligence in Lombok is not just a precaution—it’s a necessity.

From verifying land certificates and zoning regulations to understanding local adat laws and seller legitimacy, each step is a layer of protection for your investment. Skipping any part of this process can lead to legal disputes, loss of money, and delays in development. These mistakes can be costly and sometimes irreversible.

By committing to thorough property due diligence in Lombok, you ensure that your land is legally secure, properly permitted, and aligned with your intended use. It’s the difference between building confidently and living in constant uncertainty.

Before signing any agreements or transferring funds, consult with reputable legal professionals who understand both national regulations and local dynamics. Their insights can make or break your investment.

Ultimately, smart investing in Lombok begins with smart checking—because peace of mind starts long before construction does.