Property investment in Indonesia offers an exciting opportunity for both local and international buyers. Due to investor-friendly government policies, the real estate market has seen remarkable growth in recent years, with many investors able to conduct purchases offshore at ease.

Below is a brief guide to the purchase process for Monstera Villas

The Purchase Process

  • 10% downpayment

    We only require a 10% down payment to secure your property and initiate the process and secure the deal at signing of the agreement

  • 40% to start construction

    We can walk you through the process to set up your PT. PMA (foreign owned investment company).

  • 40% structural phase completion

    Once the foundations and building structure has been implemented we can continue with the finishings and interiors.

  • 10% at handover

    The final 10% of the purchase price is payable upon key handover.

FAQs - Investing in Indonesia

A bunch of green coconuts with some brown spots and spots of damage, grouped together on a dark surface outdoors.

  • Yes. While Indonesian law does not allow foreigners to directly own freehold land, you can legally own property through a PT PMA (foreign-owned company). This structure allows you to hold the property under a "Right to Build" (Hak Guna Bangunan) title for an initial 30 years, renewable up to 80 years.

  • A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company in Indonesia. It is the legal vehicle that allows international investors to acquire property and operate rental businesses. Owning through a PT PMA provides full legal rights to lease, rent, and sell the property in the future.

  • On average, the process takes 4–6 weeks from submission of documents to full registration. This includes approvals from the Indonesian Investment Coordinating Board (BKPM). Costs vary by service provider, but typically range from USD $2,000–$3,000, including all legal registrations.

  • No. You can manage the property remotely through a trusted property management company. Many investors choose to spend part of the year in Indonesia and rent the villa out when they are away.

  • Absolutely. Your PT PMA can sell the property to another PT PMA, to an Indonesian citizen, or to another foreign investor wishing to set up their own company. Resale value is expected to grow alongside tourism and development in Lombok.

  • Your PT PMA will be subject to corporate income tax on rental income (currently 22%). Personal taxes apply only if you withdraw profits. Indonesia has clear systems for annual reporting, and your accountant or property manager can assist with compliance.

  • Indonesia’s property laws for PT PMA companies are well established, and using experienced legal and property management partners ensures a secure transaction. Foreign investment in hospitality and property is actively encouraged by the government.

FAQs - Construction, Legal
& Due Diligence

A surfboard lying on the sand with a shark fin attached to it.

  • All villas are built to international standards using high-quality materials suited to Lombok’s climate. We work with reputable contractors with a proven track record. Progress inspections are welcome, and we provide regular photo/video updates.

  • Yes. We offer a 12-month defects liability period starting from handover. Any structural or workmanship issues identified during this period will be repaired at no cost. Manufacturer warranties apply to appliances and fixtures.

  • Absolutely. You are welcome and encouraged to hire an independent surveyor or notary to conduct inspections and due diligence before and during key construction stages.

  • We ensure all land is free from disputes, has clear title, correct zoning, and all required building permits (IMB/PBG) before any agreements are signed. Our notary verifies and certifies all documents.

  • Payments are made in instalments tied to construction milestones. The final 10% is due upon key handover once the villa is complete and ready to occupy.

    For legal compliance reasons, payments have to be made in Indonesian Rupiah. We recommend our clients use Wise.com for transfers from their home currency to IDR to save on transfer fees.

  • All work is carried out under licensed architects and engineers who submit plans and obtain necessary approvals from local authorities.

  • Yes, before the construction phase, you can tailor the villa layout to suit your needs - provided changes are agreed in writing, within a certain stage of construction, and any cost differences are settled.