Renting or leasing property in Lombok is a great option for both locals and foreigners who want to enjoy life in paradise without the long-term commitment of buying land. But whether you’re the landlord or the tenant, having a legally solid lease agreement isn’t just a formality — it’s a necessity.

At Lombok Legal Consultant, we often review contracts that look good on the surface but are missing key clauses that protect both parties. In the worst cases, disputes arise months later, leading to stress, financial loss, or even eviction.

If you're about to sign a property lease in Lombok (or anywhere in Indonesia), here are 5 essential clauses that must be in your contract — especially if you're a foreigner, digital nomad, or expat investor.

1. Duration of Lease & Extension Terms

Always include the exact start and end date of the lease — but don't stop there. Your lease agreement should also mention whether it can be extended, under what conditions, and how the rent will be adjusted. This is especially important in Lombok where long-term leases (up to 25 years) are common, but often poorly documented.

A clear clause on extension rights gives tenants peace of mind and protects landlords from sudden tenant claims. Make sure it's in writing — verbal agreements won’t hold up legally.

2. Payment Terms & Late Penalty

Specify how much rent is due, when it’s due, and how it must be paid (bank transfer, cash, or international wire). If there’s a security deposit, make sure the amount and return terms are stated clearly.

Also, include a clause about what happens if rent is paid late. Will there be a daily penalty fee? Is there a grace period? These details prevent future misunderstandings and help keep both parties accountable.

3. Use of the Property

This clause outlines how the property can be used. Is it for residential use only? Can it be used as a guesthouse, homestay, or business space? This is a big deal in tourist areas like Lombok where tenants often try to sublet villas on Airbnb or use them for commercial purposes.

As a landlord, you need protection. As a tenant, you need clarity. A “use of property” clause avoids confusion — and in some cases, legal violations of zoning laws.

4. Maintenance Responsibilities

Who's responsible for fixing the leaking roof or broken air conditioner? Your contract should clearly define who pays for what when it comes to repairs and general upkeep.

In many cases, landlords cover major structural issues while tenants handle daily maintenance. But every arrangement is different — and that’s why it must be written and agreed upon from the beginning.

5. Early Termination & Force Majeure

Life happens. People change plans. Whether it’s a sudden job relocation, personal emergency, or natural disaster, your lease should include a clause on early termination and force majeure (unexpected events like earthquakes, floods, or pandemics).

What happens if one party needs to cancel the agreement? Are there penalties? Is there a notice period? A properly written clause prevents conflicts and protects everyone from being caught off guard.

Even the most beautiful beachfront villa can turn into a nightmare if your lease agreement is unclear or incomplete. Many foreign tenants assume that "everything works on trust" in Lombok — and while trust is important, law is what keeps that trust safe.

At Lombok Legal Consultant, we offer lease contract drafting and review services tailored to both tenants and landlords. Whether you’re leasing for a few months or several years, we’ll make sure your rights are protected and your agreement is legally enforceable under Indonesian law.

Contact us today on +628175000121 (WA) for a consultation before you sign anything. Because peace of mind is the best part of island living.