Lombok has become one of Indonesia’s hottest property markets. With its untouched beaches, growing tourism sector, and increasing infrastructure, it’s no surprise that foreign investors are looking to buy land or build villas on the island.

But as demand rises, so does the risk of property scams. Many foreigners, unfamiliar with Indonesian regulations and local practices, have unfortunately lost money or become trapped in complicated disputes.

The good news? These risks are avoidable if you know what to look for and take the right precautions. In this article, we’ll cover the most common property scams in Lombok and how to protect yourself, so your investment can be secure and stress-free.

The Most Common Property Scams in Lombok

1. Fake or Invalid Land Certificates

Perhaps the most widespread scam involves forged land certificates. On the surface, the documents look official, but in reality they are either fake or not properly registered with the Indonesian National Land Agency (BPN).

In some cases, the same piece of land is sold to multiple buyers using different sets of forged paperwork.

How to avoid it: Always verify the certificate directly with BPN or through a trusted notary. Never rely only on photocopies or digital scans.

2. Overlapping Ownership Claims

It’s not uncommon for land in Lombok to have conflicting ownership claims. A seller may present a certificate, while another party also claims ownership based on older village documents.

This can lead to years of disputes, and in the worst cases, losing both your money and the land.

How to avoid it: Conduct a full land history check, verify ownership with the authorities, and make sure the seller has full legal rights to sell.

3. Unclear Zoning and Land Use

Not every piece of land is suitable for building. Some areas are zoned strictly for agriculture or protected for conservation. Unscrupulous sellers may promote land as “villa-ready” when in fact it cannot legally be developed.

If you build on land that violates zoning laws, you could face heavy fines, demolition, or even legal action.

How to avoid it: Confirm zoning regulations with local authorities before purchasing. Make sure the land is legally designated for residential or tourism development.

4. Risky Nominee Agreements

Foreigners cannot directly own freehold land in Indonesia. Some sellers suggest using a nominee arrangement, where an Indonesian citizen holds the title on behalf of the foreign buyer.

The danger? Without strong legal agreements, the nominee could claim the property entirely, leaving the foreign investor with no protection.

How to avoid it: If you use a nominee, ensure the contract is drafted by a trusted notary and backed by multiple binding agreements. Better yet, consider safer structures such as:

• Setting up a PT PMA (foreign-owned company) with Hak Guna Bangunan (HGB).
• Opting for a leasehold (Hak Sewa) agreement.

5. Hidden Costs and Inflated Prices

Foreign investors are often quoted much higher prices than locals. On top of that, unexpected fees for certificates, permits, or community contributions can appear suddenly after the deal is made.

How to avoid it: Research market prices in the area. Work with a reliable local partner who can negotiate on your behalf and give you transparent cost breakdowns.

How to Protect Yourself as a Foreign Investor

Buying property in Lombok doesn’t have to be stressful. By taking these steps, you can minimize risks:

• Do full due diligence – Check ownership, boundaries, and zoning with BPN.
• Hire a trusted notary and lawyer – Never depend only on the seller’s contacts.
• Understand Indonesian land laws – Learn about PT PMA, HGB, and leasehold.
• Work with experienced locals – A good partner can bridge cultural and legal gaps.
• Always visit the site in person – Don’t buy based solely on photos or online listings.

Why Work With Lombok Expert

At Lombok Expert, our mission is simple: to make your property search in Lombok smooth, transparent, and stress-free.

Here’s how we support you:

• Curated property options – We only showcase land and villas that have been checked for clear ownership by the seller.

• Local knowledge – Our team is based in Lombok, giving you insider insights on the best areas to invest.

• Personalized assistance – From arranging property tours to helping you understand different buying options, we make the process easier.

• End-to-end support – From your first inquiry to walking the land yourself, we’re by your side.

While we don’t provide legal services, we ensure you have the right information and confidence to take the next steps in your Lombok investment journey.

Final Thoughts

Lombok is one of the most exciting investment opportunities in Southeast Asia. But like any booming property market, it comes with risks. By knowing the common scams and working with a reliable partner, you can avoid costly mistakes and focus on building your dream home or villa in paradise.

📩 Ready to start your safe property journey in Lombok?
Contact Lombok Expert today for a free consultation and your personalized property shortlist.

Get to know us better by visit: www.lombokexpert.com